Michigan Bankruptcy Lawyer and Attorney

Bankruptcy is a tough choice. Yes, it’s an easy decision when lawsuits are pouring in and court officers are banging on your door to enforce judgments; An easy choice to decide when there has been a tragedy in the family due to accident or illness. Perhaps loss of income or a failed business venture has taken all that you’ve saved or has thrown your “making ends meet” plan far off course. I’ve helped many clients through the logical choice and have taken aggressive critical actions to help immediately.

There are situations however where an in depth analysis is necessary in order for an individual to feel comfortable with the decision to file. Typically these complex cases involve houses, investments and diverse business interests. Our office is staffed with mortgage and real estate professionals, these experts have helped many in their own fields with the tough analysis and recovery plans. Short sale, loan modification and land contracts for a new home are options that you may want to consider prior to filing.

We are not people with wealthy backgrounds who have spent their lives in school and simply became lawyers. We are down to earth folks who’ve lived diverse lives…we simply understand your situation far better than a typical firm. We are here if you qualify, We are here to help you through these difficult times. We are licensed with the States of Michigan, and New York, and our office is a proud member of the National Association of Consumer Bankruptcy Attorneys. We want to help you. Call us today, we will provide tough, affordable representation.

Personal BK   Business BK   Debt Settlement and Modification   Foreclosure   Collection Defense

You are not alone in your desire to push the reset button on your financial life.

 

Chapter 7 - Liquidation

Chapter 7 of the United States Bankruptcy Code is the Bankruptcy Code's "liquidation" chapter. Lawyers sometimes refer to it as a "straight bankruptcy."  It is used primarily by individuals who wish to free themselves of debt simply and inexpensively, but may also be used by businesses that wish to liquidate and terminate their business

 

Chapter 11 - Bankruptcy

A chapter 11 case begins with the filing of a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. A petition may be a voluntary petition, which is filed by the debtor, or it may be an involuntary petition, which is filed by creditors that meet certain requirements. 11 U.S.C. §§ 301, 303. A voluntary petition must adhere to the format of Form 1 of the Official Forms prescribed by the Judicial Conference of the United States. Unless the court orders otherwise, the debtor also must file with the court: (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a schedule of executory contracts and unexpired leases; and (4) a statement of financial affairs. Fed. R. Bankr. P. 1007(b). If the debtor is an individual (or husband and wife), there are additional document filing requirements. Such debtors must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts.11 U.S.C. § 521. A husband and wife may file a joint petition or individual petitions. 11 U.S.C. § 302(a).

 

Chapter 13 - Individual Debt Adjustment

Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on "consumer debts." This provision may protect co-signers. Finally, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.

 

Loan Modification

Loan modification means negotiating with your creditors to omit past-due amounts, reducing the net payable interest aggregate and escrow, and to avail an extension for the repayment schedule with reduced monthly payment schedule. Most importantly, loan modification means that you will be able to actually afford your loans. Contact our office for more information about our loan modification services.

 

Debt Settlement

Essentially, debt settlement is the process of negotiating with creditors to reduce overall debts in exchange for a lump sum payment. A successful settlement occurs when the creditor agrees to forgive a percentage of total account balance. Only unsecured debts not secured by real assets like homes or autos can be settled. Unsecured debts include medical bills and credit card debts - not student loans, auto financing or mortgages. For the debtor, this makes obvious sense, they avoid the stigma and intrusive court-mandated controls of bankruptcy while still lowering, sometimes by more than 50%, their debt balances. Whereas, for the creditor, they regain trust that the borrower intends to pay back what he can of the loans and not file bankruptcy (in which case, the creditor risks losing all monies owed).