Bankruptcy FAQ

Experienced Detroit Bankruptcy Attorneys

Feel free to call our firm at your earliest convenience. In the meantime, we might have some of the answers to your bankruptcy questions below:

Do I Have to Hire an Attorney for a Bankruptcy?

You are legally entitled to represent yourself in bankruptcy, which is known as a pro se filing, but to achieve the best possible result it is highly advisable to work with an experienced bankruptcy attorney. Having legal representation can help you avoid missing filing deadlines and errors in providing information to the court which could result in your petition being dismissed.

There is also the possibility that you could end up only partially discharging your debt.

What Is the Difference Between Chapter 7 and Chapter 13?

Chapter 7 is referred to as "straight bankruptcy" or "total liquidation" and it results in a swift discharge of debts. Before you can file Chapter 7, you will have to pass a means test of your income and monthly expenses. Chapter 13, also called "a wage earner plan," is a way of restructuring a full or partial repayment of your debts according to your ability to comfortably repay.

Does Bankruptcy Remove All of My Debt?

While bankruptcy may release you from non-secured debts, it does not include things such as student loans, car loans and mortgages. It is because these other types of loans are secured by collateral that bankruptcy does not cover them. It also depends on which form of bankruptcy you qualify for. Chapter 7 allows for a large amount if not all of your consumer debts to be relinquished, however, Chapter 13 debts must still be paid back but in different installments.

How Long Does the Bankruptcy Process Take?

The Chapter 7 process will typically take about six months with one mandatory court appearance. The Chapter 13 process will take longer, between three and five years depending on your particular circumstances, with two mandatory court appearances.

In either case, you will receive immediate protection against creditor actions such as wage garnishment and repossessions through an automatic stay as soon as we file your petition.

Will Bankruptcy Hurt My Credit?

Declaring bankruptcy will have a negative impact on your credit, but if you are struggling with debt it is likely that your credit score is already suffering. When you complete the process, you will no longer have such a high debt to income ratio, and you will be able to begin saving money for the future.

By carefully managing your finances and using strategies for credit restoration, you may soon have a better credit score than you do now, and within 10 years the bankruptcy will disappear from your credit report.