Chapter 13 Bankruptcy in Michigan
Consolidate your debts while keeping your assets so you can get back on track financially.
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What Is a Chapter 13 Bankruptcy?
This is a legal process and financial tool designed to help you take control of your finances. It allows you to keep your assets while reorganizing debts to pay off over time. The plan can also eliminate unsecured debt obligations.
When you file for this type of bankruptcy, you commit to making your “best effort” to pay back your debts over three to five years. At the end of this period, any remaining unsecured debts are legally eliminated or discharged to give you a fresh start.
The purpose of the Chapter 13 program is to:
- Consolidate, prioritize and reduce your debts;
- Provide a consistent repayment plan with favorable terms;
- Improve your credit;
- Provide court protection from your creditors or any creditor action (foreclosure, garnishment, utility shut-off, etc.).
If you face overwhelming debt and credit pressures, a bankruptcy Chapter 13 lawyer can help you explore your options for debt resolution.
Benefits of a Chapter 13 Bankruptcy
This plan might be your best option if you want to:
- Keep your home and assets: Filing Chapter 13 bankruptcy will legally stop a home foreclosure sale if it is filed before the sale date. During this process, you still have the option to seek a loan modification with your mortgage company if you choose. Chapter 13 bankruptcy also provides the only legal way to remove a secondary lien on your home.
- Gain affordable repayment terms: Pay off missed mortgage payments and all unsecured debt obligations at 0% interest with no continued late penalties. The Chapter 13 repayment program also allows you to lower your vehicle payments to fit within your budget by reducing the interest rate or extending the loan terms.
- Relieve and eliminate unsecured debts: Payment to unsecured creditors is paused until you are caught up on your home, vehicle, taxes and other secured debts, giving you some breathing room.
- Improve your financial standing: Chapter 13 debt consolidation will improve your credit over time by lowering your debts and reestablishing a regular payment record. These two factors alone account for 65% of your credit score. You can also refinance or sell your home and pay off your case early. If your income changes, we can adjust your plan payments to reflect your new circumstances.
What Happens When Chapter 13 Is Paid Off?
Once you complete your repayment plan, whatever unsecured debt balances remain are legally eliminated or discharged. You gain a fresh financial start without creditor obligations.
How Does Chapter 13 Work?
You'll work with one of our expert Chapter 13 bankruptcy lawyers who will protect your rights and help craft a repayment plan tailored to your situation. During the repayment process, you will make regular monthly payments to a trustee who will use the funds to pay creditors as outlined in the Chapter 13 plan.
Steps to Filing Chapter 13 Bankruptcy
In Michigan, the Chapter 13 process includes these steps:
- File a petition to begin court protection against creditors. Once a case number is established, you are protected!
- Work with a legal professional to create a custom repayment plan.
- Attend creditor meetings and comply with trustee requirements.
- Complete financial management courses and submit required documents.
- Receive a discharge of debts after completing the repayment plan.
Why Trust Our Chapter 13 Bankruptcy Attorneys?
Our compassionate legal experts have successfully navigated thousands of bankruptcy cases, and we specialize in Chapter 13 law. Our firm has over 120 years of combined experience and was established to do one thing: help our clients find lasting debt resolution and restore credit. It is all we do.
Christopher Jones, our board-certified managing attorney, regularly speaks on Chapter 13 topics at industry events, such as those conducted by the American Bankruptcy Institute. Our team knows the process and is here to help you understand your options and get the most out of your customized Chapter 13 plan. Once your case is filed, you will be assigned to an attorney and paralegal team for the whole duration of your repayment plan. You can rest easy knowing you will have consistent help from a team that is experienced with your case.
We're committed to using our advanced bankruptcy knowledge to your benefit. Our exceptional customer service is demonstrated by our A+ rating with the Better Business Bureau, which we have proudly maintained for over two decades. Past customers also praise our step-by-step guidance toward positive results.
Start Your Financial Recovery Today
If you are considering filing for Chapter 13 bankruptcy in Michigan, your next step is to connect with a Chapter 13 bankruptcy attorney.
Call us today at 866-261-8282 or schedule a free consultation to learn more about your options to get your finances back on track.
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