Bankruptcy in Detroit: Chapter 13 FAQ
Our Detroit Chapter 13 Lawyer Has the Answers You Need
If you have missed payments on your home loan or fallen behind on other
financial obligations, and you are looking for long-term debt relief,
a Detroit Chapter 13 lawyer at Marshall D. Schultz can help you determine
if bankruptcy is right for you. There are countless
benefits of bankruptcy. Having a lawyer on your side that has a comprehensive understanding of
bankruptcy laws and years of experience helping individuals get the fresh
financial start they deserve, will greatly improve your chances of being
able to avail yourself of those benefits.
Our firm will work hard to help you retain key assets and properties that
you may otherwise be forced to give up. Our lawyers have more than 33
years combined experience practicing law and we have handled in excess
of 10,000 bankruptcy cases. To help you determine whether
Chapter 13 is right for you, here are some common questions and answers about Chapter
13 bankruptcy here in Detroit:
What is the difference between Chapter 7 and Chapter 13?
Chapter 7 is for those individuals who have an income below the median as verified
through a Means Test, have little to no assets that can be liquidated
and used to pay off past due loans, and who need a hand to get out of
the unfortunate financial situation they have found themselves in. At
the end of a Chapter 7 bankruptcy the majority of a person's debts
will be discharged and he or she will be given a clean slate. Chapter
13 is an option for those individuals who either do not qualify for Chapter
7, or who have sufficient assets and property they would like to retain,
while still being able to pay off delinquent debts and regain control
of their financial situation.
Is Chapter 13 only for those individuals who don't qualify to file
for Chapter 7?
Chapter 13 is not only for those individuals who do not qualify to file
for Chapter 7. Chapter 13 offers a solution to debtors who may have fallen
behind on their financial obligations. This type of bankruptcy is a viable
way in which an individual can catch up on missed payments, pay off past
due taxes without having to worry about additional interest being accrued,
and still be able to retain all of his or her existing assets. Chapter
13 is also a proven
foreclosure defense. Providing you have a stable and steady income, and that you have some
level of disposable income which can be put toward your debt repayment
plan, Chapter 13 can help you get caught up on your past due payments
with a 3- to 5-year period and retain your assets. Any dischargeable debt
not fully paid back by the end of your repayment plan will be released
as per the terms of your bankruptcy agreement.
Will I lose all my assets and property when I file for Chapter 13?
Chapter 13 is the most feasible bankruptcy option for any individual wanting
to retain possession of his or her assets and property. In Chapter 13
you do not discharge all of your qualifying debt; you simply restructure
it so that it can be paid over a 3- to 5-year period. You will have a
far greater chance of retaining your assets, avoiding foreclosure and
maintaining your current lifestyle if you file for Chapter 13 rather than
Is Chapter 13 the same as debt consolidation?
The primary difference between
debt consolidation and Chapter 13 is that in a Chapter 13 bankruptcy creditors are required
by the court to follow the terms laid out in the debt settlement agreement
and repayment plan. In a standard debt consolidation, a creditor has no
obligation to agree to the terms being proposed. Debt consolidation agreements
can and will also include continually accruing interest, whereas no further
interest will accrue during the course of a Chapter 13 repayment plan.
Which type of bankruptcy is better for my credit?
There is no specific bankruptcy that is "better" for your credit.
Any type of bankruptcy will have a negative impact your credit score and
remain on your credit report for between 7 and 10 years. While a Chapter
13 bankruptcy will remain on your credit report for less overall time
than a Chapter 7 bankruptcy, a Chapter 7 will be completed in a matter
of months not years. As soon an individual's debts are discharged
in a Chapter 7, the process of rebuilding his or her credit can begin.
In a Chapter 13, you will remain in bankruptcy until the terms of your
repayment plan have been met.
Call a Detroit Chapter 13 attorney today!
If you or a loved one are considering filing for bankruptcy, a Detroit
Chapter 13 attorney at our firm can help. We will be able to review your
current financial situation, asset whether you meet the necessary qualifications
to file for protection under bankruptcy laws and help you determine how
to proceed. There are many situations that can cause an individual to
fall behind on his or her debts. We are not here to judge you; we are
here to provide you with the legal representation you need to overcome
the financial obstacles you face so that you can get a fresh start.
Contact our law firm today to find out what we can do for you.