A Chapter 13 bankruptcy is a reorganization of your debt, which allows you to pay back your debt according to a schedule, or plan that is affordable to you. In most Chapter 13 cases, the debtor is required to only pay a portion of his or her debt and the balance is discharged upon completion of the terms of the plan.
For more information about Chapter 13 and what it can do for you, contact Michael W. Reeds, P.C. Our Chapter 13 bankruptcy lawyers can guide you through the process and help you develop a repayment plan that is affordable and gets you the debt relief you need.
My House Is Going Into Foreclosure; What Can I Do?
You can file Chapter 13 bankruptcy to stop foreclosure. Upon filing Chapter 13, you immediately stop your mortgage company from foreclosing. As long as your Chapter 13 is filed before the foreclosure sale or sheriff's sale date, your home is safe. The mortgage arrearage (the amount you are behind) can then be paid back gradually over the next few years instead of you having to pay it all back immediately.
My Car Is About to be Repossessed; Is There Anything I Can Do?
If you file Chapter 13, you can stop the vehicle from being repossessed. In fact, if you purchased the car more than 910 days ago (approximately two and a half years) we may be able to spread out the repayment of the car over a longer period of time, lower the interest rate, and reduce the overall amount that you will have to repay to the finance company.
I Want to Pay My Debts, But the Interest Rates Are Killing Me; What Can I Do?
You can file Chapter 13 bankruptcy. In a day and age where credit card companies do business by luring unsuspecting victims into paying hidden costs and ludicrous interest rates, Chapter 13 bankruptcy is the "Great Equalizer." Through Chapter 13, your income dictates how much you have to pay the credit card companies and whether or not you have to pay them interest at all.
What Else Does Chapter 13 Do?
Certain debts are not dischargeable under Chapter 7 but they can be reorganized through Chapter 13. These debts include child support arrearages, student loans, certain taxes, fines and costs, money judgments for wrongful or criminal behavior, Social Security and unemployment overpayments and many more.
Some General Chapter 13 Concepts
Mortgage creditors receive their regular monthly mortgage payment and the arrears are paid back over an extended, affordable period of time. Auto finance creditors are paid either the present market value of the car or the full amount owed, depending on the date of purchase. In some cases, a monthly auto payment is reduced by hundreds of dollars. Other secured creditors, such as furniture or appliance stores, are paid only the present value of the item they financed. If you do not want to pay for the item, you can surrender it to the creditor and in most cases owe very little or nothing.
Unsecured creditors are paid anywhere from 0 percent to 100 percent of the amount that they are owed, depending upon your individual financial circumstances. No further interest accrues on the unsecured debt during the time period that your Chapter 13 is pending. This alone can save you thousands of dollars due to the high interest rates charged by most credit card companies.
Let us evaluate your financial situation. We will be able to tell you what your monthly Chapter 13 payments will be and the percentage you will be repaying creditors. We have been helping people in a financial crisis to rebuild their lives for many years.
Bankruptcy Lawyers Serving Oakland, Wayne, Macomb and Livingston Counties
Contact our Chapter 13 bankruptcy attorneys about debt consolidation and repayment plans. We offer free initial consultations, and we handle bankruptcy cases throughout southeastern Michigan.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.