Kelley & Evanchek
Bankruptcy
Facing financial challenges can feel overwhelming, but you don’t have to go through it alone. Filing for bankruptcy is designed to help individuals and businesses that can no longer pay their creditors get a fresh start and manage their debt more effectively. Whether through liquidating assets or creating a repayment plan, bankruptcy can help eliminate debt and protect you under the U.S. Bankruptcy Court.
Filing for Bankruptcy in Michigan
When debt becomes unmanageable, our compassionate bankruptcy attorneys are here to support you. We can help with issues like:
- Creditor Harassment
- Wage Garnishment
- Repossession
- Foreclosure Threats
- Child Support Payments
- Student Loan Debt
- Taxes
The most common types of bankruptcy
Chapter 7 Bankruptcy
Chapter 7 Bankruptcy involves liquidating non-exempt assets to pay off creditors. It’s a viable option for consumers, businesses, and corporations looking to discharge most of their debts. In Michigan, you may be able to protect essential assets such as your home, car, and personal belongings through specific state exemptions. Consult with your attorney to understand which exemptions apply to your situation.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is designed for individuals and non-corporate businesses who want to reorganize their debt through a repayment plan. It’s available for those who do not meet the income eligibility standards for Chapter 7 Bankruptcy. This option allows you to keep your assets and repay your debt over three to five years based on what you can afford relative to your income and expenses.
Chapter 13 Bankruptcy often includes non-dischargeable debt such as:
- Student Loans
- Taxes
- Child Support
Chapter 11 Bankruptcy
Chapter 11 Bankruptcy is typically reserved for businesses and individuals with substantial debt who need to reorganize their financial affairs. Although it’s more common for corporations, individuals with complex financial situations may also consider this option.
Find a Bankruptcy Attorney
If you’re in Canton, Belleville, Westland, Romulus, Ypsilanti, or surrounding areas, our bankruptcy lawyers at Kelley & Evanchek, PC are here to help. Get debt relief today! Eliminate debt and protect your assets.
FAQ
Q: What types of debts can be discharged in Chapter 7 Bankruptcy in Michigan?
A: In Michigan, Chapter 7 Bankruptcy can discharge most unsecured debts, such as credit card bills, medical bills, and personal loans. However, certain debts, like student loans, child support, and some taxes, are typically non-dischargeable.
Q: Am I eligible for Chapter 13 Bankruptcy if I have a high income?
A: Yes, Chapter 13 Bankruptcy is designed for individuals and businesses with a regular income who do not qualify for Chapter 7 due to income limitations. It allows you to create a repayment plan to pay off your debts over three to five years.
Q: Can I keep my home and car if I file for Chapter 7 Bankruptcy in Michigan?
A: Michigan law allows you to keep certain exempt assets, including your home and car, under Chapter 7 Bankruptcy. These exemptions can help protect your essential property from liquidation.
Q: What is the difference between Chapter 7 and Chapter 13 Bankruptcy?
A: Chapter 7 Bankruptcy involves liquidating non-exempt assets to pay off creditors and discharging most debts. In contrast, Chapter 13 Bankruptcy allows you to keep your assets and repay your debts over time through a court-approved plan.
What to Expect During the Bankruptcy Process in Michigan
When filing for bankruptcy in Michigan, the process typically begins with a consultation with a bankruptcy attorney. You’ll need to gather documentation, including income statements, a list of debts, and details about your assets. Your attorney will then help you file a petition with the U.S. Bankruptcy Court. Depending on the type of bankruptcy, you’ll either propose a repayment plan or liquidate certain assets. The entire process can take several months, but your attorney will guide you every step of the way.