Detroit Bankruptcy: Chapter 7 FAQ
Are you considering filing for Chapter 7 bankruptcy in Detroit?
Finding yourself on the edge of financial ruin can be a devastating and humbling experience. The most effective way to seek a resolution to your financial troubles is to take a proactive approach and secure legal representation from a proven Detroit Chapter 7 attorney at our firm now. Our firm has represented more than 10,000 bankruptcy cases over the years. We are well-versed on bankruptcy laws and we are committed to helping our clients achieve the most optimum results. If you do not qualify for Chapter 7 or you would rather pursue one of the alternatives to bankruptcy, our firm can still provide you with the one-on-one, personalized service you deserve. To get started, here are a few common questions and answers about Chapter 7 bankruptcy:
How can I determine if I am eligible to file for Chapter 7?
One of the first steps in the bankruptcy process is for a bankruptcy attorney to perform a
means test to determine if you have the means necessary to repay your delinquent debt over a reasonable period of time, or if you are below the state's median income and thus are eligible to have your qualifying debts discharged. There are instances in which an individual, with an income above the state's median, may still be able to qualify for Chapter 7. A bankruptcy attorney from our firm can review your current financial situation and advise you of the options you may wish to pursue.
Can filing for Chapter 7 put a stop to creditor harassment and foreclosure proceedings?
Filing for Chapter 7 can be an effective collections defense or
foreclosure defense. When an individual files for bankruptcy an automatic stay will be put on all collection efforts and legal actions for the purpose of recovering payment. As soon as the stay goes into effect, creditors are no longer allowed to contact you or take any further actions to collect on your account. Foreclosure proceedings and other ongoing legal processes will not be able to proceed forward without direct permission from the bankruptcy court. Our firm will work with you closely to see that your rights according to the
Fair Debt Collection Practices Act are protected so that you can work on getting the fresh financial start you deserve.
Will all my debts be discharged in a Chapter 7 bankruptcy?
Most people are under the impression that filing for Chapter 7 bankruptcy will eliminate all of their financial obligations and outstanding debt. This is not necessarily true. Chapter 7 will free you of any obligations you have on unsecured debts such as credit cards debts, medical bills and certain other types of debts. Student loans, tax debts, alimony, child support and other court-ordered payments are not usually discharged in a Chapter 7 bankruptcy. If you want to know which of your debts will be eligible for discharge in Chapter 7, call our firm today.
Will I lose my home and all of my assets when filing Chapter 7?
When filing for Chapter 7, our firm will help you take advantage of the various bankruptcy exemptions our state offers to its residents so that you will not necessarily have to lose your home or any of your personal, valuable assets. You may also be able to hold on to insurance plans and retirement plans as these are commonly exempt from being used in the bankruptcy process.
How long will it take to restore my credit after Chapter 7?
Credit restoration is a common question when considering whether or not to file for bankruptcy. There is no question that filing for bankruptcy will have a negative impact on your credit. When you file for Chapter 7, the information pertaining to your bankruptcy will remain on your credit report for 10 years. This does not mean that it will take you 10 years to rebuild and restore your credit. The Chapter 7 bankruptcy process commonly takes between 3-6 months before your debts will be discharged. It is at that point you will be able to begin rebuilding your credit. Our firm will help educate you on the steps you can use to help steadily improve your credit score.
Talk to a Detroit Chapter 7 bankruptcy lawyer at our firm now!
Making the decision to file for bankruptcy may not be easy. You will want to review your options and determine if bankruptcy is right for you. Our firm is here to be the advocate you need during this difficult time in your life. To find out more about the services we offer, contact a Detroit Chapter 7 lawyer with Marshall D. Schultz at your earliest convenience to
schedule a free consultation and review of your case. Let us help you unburden your life and get a fresh start on the road to financial success.