Chapter 7 Bankruptcy
Filing a Chapter 7 Bankruptcy may be a good option to consider for Michigan residents who wish to:
Eliminate credit card debt
Eliminate medical debt
Your wages are being garnished.
You are behind on your car payments
Creditors are harassing you.
Filing a Chapter 7 bankruptcy often allows you to get a fresh start. It allows the filer to achieve financial freedom from unsecured debt in just four to six months. Debt is considered unsecured if it is not attached to a material form of collateral such as credit card bills, medical bills and personal loans.
In most cases Wage Garnishment will stop immediately after we file your bankruptcy petition.
Filing a Chapter 7 Bankruptcy will stop car repossession, buying you time to find alternate transportation or to negotiate a payment arrangement.
The Process of Filing Under Chapter 7
When you file for bankruptcy under Chapter 7, you receive an automatic stay that offers protection against the collection attempts and communication from any and all debt collectors and wage garnishments while your case is being processed by the Court for discharge. This process is relatively efficient compared to other forms of bankruptcy, often lasting just four to six months.
For a Free Consultation with a Chapter 7 bankruptcy attorney at the Karian & Associates, PLLC call (248) 594-2263 or complete our contact form below. We represent individuals throughout Metro Detroit.
Chapter 13 Bankruptcy
The Chapter 13 Bankruptcy may be right option for you if you:
Are trying to save your home from foreclosure
Have a 2nd Mortgage or Equity line of credit on your home
Are behind on your car payments.
Have IRS or State tax debt.
Want to consolidate student loans
Your income was interrupted and now you want a chance to catch up.
Don’t qualify for a Chapter 7 Bankruptcy.
When you file a Chapter 13 bankruptcy your debts are consolidated into one interest free repayment plan that lasts over a 3 to 5 year period. The Federal Court orders creditors to stop trying to collect from you. Paying a Chapter 13 plan does not mean you have to pay back all of your debts. At the end of your plan, you still are able to discharge debts like credit cards, medical bills and other unsecured debt often for as little as pennies on the dollar. Contact Karian & Associates to learn more at 248-594-2263.
Prevent Foreclosure and Save Your Home!
If you are facing foreclosure, a Chapter 13 bankruptcy proceeding can potentially help you save your home. Once you file, an automatic stay is entered in any pending legal proceedings against you, including a foreclosure. The automatic stay acts like an injunction, or bar, against any creditors’ attempts to collect debts, enforce liens, or pursue foreclosure. The automatic stay is triggered at the moment you file your bankruptcy proceeding. You will be allowed to keep your home and catch up on your mortgage payments through your Chapter 13 bankruptcy plan.
After your plan is discharged, you will still be obligated to make all future mortgage payments directly to the mortgage company, but they may not foreclose to collect any outstanding mortgage payments.
Eliminate 2nd Mortgages and Equity Line of Credit
2nd Mortgages and Equity Lines can also be eliminated and paid pennies on the dollar as an unsecured claim if the value of your home is less than what is owed on your 1st mortgage.
Keep Your Vehicle
When you file a Chapter 13 Bankruptcy you can keep your vehicle. You will pay the car loan over the course of your chapter 13 plan which will be between 3 and 5 years at an interest rate decided by the court. Often your payment is far less. In some cases you only have to pay for the value of your car. This is commonly known as a “cram down”. Your attorney will explain all of your options at your Free Consultation.
For a Free Consultation with a Metro Detroit Chapter 13 bankruptcy attorney at the Karian & Associates, PLLC call (248) 594-2263 or complete our contact form below. We represent individuals throughout Metro Detroit.
Get Started Today!
Call (248) 594 - 2263 for a free initial consultation with an experienced tax attorney today or complete our brief online form and we will contact you as soon as possible.