When you and your wife have the big talk about finances late in the evening, the two of you may come to a conclusion neither of you wanted to consider before: things have gotten so out of hand that you may need to file for bankruptcy.
Does that mean you will be lose your home? Will your cars get repossessed?
Probably not. If you make a decent steady income and expect that to continue, if you have substantial equity in your home, or even if you have filed for Chapter 7 michigan bankruptcy in the last seven years, a Chapter 13 bankruptcy Michigan is an approach you should consider seriously. And for Chapter 13 bankruptcy Michigan filing, you will require the assistance and professional counsel of a Grand Rapids bankruptcy attorney, Kalamazoo bankruptcy attorney, Holland bankruptcy attorney or western district of michigan bankruptcy attorney, depending on where you live.
A Chapter 13 bankruptcy Michigan has an immediate ray of sunshine for you. When you file for the protections offered in a Chapter 13 bankruptcy Michigan, your creditors must cease any proceedings to collect on outstanding debts you have. Your creditors may not foreclose on your home under most circumstances, and cannot repossess your cars.
Filing Chapter 13 bankruptcy michigan means that you and your attorneys are going to present a repayment plan to the court. That plan will take in all creditors to whom you have outstanding debts. Depending on your level of income and the sum of your debts, your repayment plan may last either three years or five years. It is likely that your wages will be subject to garnishment, meaning that a portion of your paychecks will go first to the court or its agent, to be redistributed to your creditors. You will certainly want to discuss all of this with an attorney.
Not everyone can qualify for Chapter 13 bankruptcy Michigan. You must be able to prove to the court that your income is stable and sufficient to meet the repayment obligations that will be set up by the court. If your income is too low, or your compensation comes irregularly, the court may not allow you to file. You will also not be allowed to file if your secured debts (those on which you have collateral, like your house) or your unsecured debts (no resultant collateral) are too high. Your attorney can explain all of this to you and start the process of filing for Chapter 13 bankruptcy Michigan…then you can take some deeo breaths.