Speaking with a bankruptcy lawyer near you can be the best way to get information about how filing bankruptcy can affect your debt and your future.

A local bankruptcy attorney can help you understand the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy, so that you can make an educated decision about the best next step for you.

Keep in mind, however, that each bankruptcy case is different. To get more thorough answers to all of your questions, you should speak with a bankruptcy lawyer near you. If you would like a free case review with a local bankruptcy lawyer, fill out the form and we’ll help you connect with an attorney nearby. Fill out the form below for a free bankruptcy case evaluation by a local attorney.

Bankruptcy filed under Chapter 13 gives people a range of advantages over liquidation under a bankruptcy filed under Chapter 7. Maybe most significantly, chapter 13 provides folks a way to preserve their homes from foreclosure. By filing under this chapter, individuals can halt foreclosure proceedings and may remedy past due mortgage payments over time.

Nevertheless, they will have to still make all mortgage payments that come due during the Chapter 13 plan by the due date. Yet another advantage of chapter 13 is that it allows people to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments.

Chapter 13 bankruptcy also has a specific provision that protects third parties who are responsible to the debtor on “consumer debts.” This provision might shield co-signers. Finally, bankruptcy filed under chapter 13 acts like a consolidation loan under which the person makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chap 13 protection.

Virtually any person, even if self-employed or operating an unincorporated business, is qualified for bankruptcy filed under chapter 13  as long as the individual’s unsecured debts are less than $360,475 and secured debts are less than $1,081,400. These amounts are altered regularly to reflect changes in the consumer price index. A corporation or partnership may not be a bankruptcy filed under chapter 13 debtor.

Individuals cannot file under bankruptcy filed under chapter 13 or any other chapter if, during the former 180 days, a previous bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover assets upon which they hold liens. In addition, no individual may be a debtor under chapter 13 or any chapter of the Bankruptcy Code unless he or she has, within 180 days prior to filing, received credit counseling from an accepted credit counseling agency either in an individual or group briefing. There are exceptions in emergency circumstances or where the U.S. trustee (or bankruptcy administrator) has identified that there are inadequate permitted agencies to provide the needed counseling. If a debt management plan is created in the course of required credit counseling, it will have to be filed with the court.

If you’re considering bankruptcy, talk to a local bankruptcy attorney about your options. An experienced  debt attorney can provide you with which options are right for you.

The decision to claim bankruptcy should not be rushed into. It might help you solve your financial problems quickly and efficiently, but it certainly places a strain on your future finances. Many people don’t realize that it stays on your credit record for up to seven years and makes simple things, like getting a credit card, difficult. Most average people don’t know how to claim bankruptcy and will utilize the services of a lawyer. However, even with professional help it is still common for problems to occur with the process. The following are the difficulties that many people face when filing for bankruptcy.

Documentation
Filing for bankruptcy requires that you have lots of supporting documentation. The lawyer will tell you how to go bankrupt and what you need for your application, but you will be responsible for supplying all the required paperwork. You should also make at least 3 copies for the different claims paperwork that you will be required to submit. Don’t be lazy in this area, it is not unheard of for a claim to be denied because of one missing piece of documentation.

Paperwork
Paperwork must be filled out correctly otherwise application is rejected and you are subject to an exclusion period of up to 180 days from filing again. Make sure all your information is correct (double check it) and that you provide the court with all the required information. Withholding any detail is not a good idea because, if found out, your application will be denied.

Creditors
Creditors can file a petition against the claim and although this isn’t a major cause of rejections you should be aware that it can happen. This is why it is always a good idea to open a dialogue with your creditors and try to negotiate with them. Even if it fails at least you will have a record that you tried to work things out with them.

There are ways to make sure that these problems don’t affect your claim, such as hiring a specialist bankruptcy attorney, but nothing beats spending a little extra time double checking everything. By doing this you will stand a much better chance of having your claim approved.

Bankruptcy can be complicated and if you decide you want to file by your self you are legally able to represent yourself in front of court and in front of your creditors when you file bankruptcy. However, there are times when it doesn’t matter how much are bankruptcy attorney fees. In once such case is when an adversary proceeding is filed against you by a creditor.

What is an adversary proceeding in relation to bankruptcy?

This is where any of the three parties can request a hearing in front of a judge about any debt. There are typically three people that can request an adversary proceeding and which is the trustee, the creditor or the debtor. If the creditor has filed it typically means they are objecting to the debt being discharged in bankruptcy.

What happens during the proceeding?

In certain circumstances the creditor will try to prove the debtor knowingly used the credit card under the pretense of filing bankruptcy and they have to prove to the judge that was the debtor’s intention. In other cases someone who has been sued for property damage or may have a law suit from an accident may challenge the debt to know be discharged.

In other situations where the trustee has filed an adversary proceeding they may try to prove the debtor knowingly was committing fraud by filing bankruptcy or they knowingly did not fill out their  schedules correctly.

The debtor is also protected under these proceedings which allow them to file against their creditor to try to get recover damages if they can prove the creditors’ action violated the bankruptcy code. This may happen if the creditor continues to try to collect on a debt that was discharged in bankruptcy.

Although the name adversary proceeding and the processes can be intimidating this typically can be avoided by discussing these issues with the creditor or the trustee and either making changes or settling before court. This is where having a bankruptcy attorney will help by acting as a proxy for these problems.

Those who are thinking about filing for bankruptcy in the state of Michigan might be wondering what they can expect out of the process. While bankruptcy is not a cure-all for financial problems, it is sometimes the best option. Here is some handy information about how one qualifies for and goes about filing for bankruptcy.

Firstly, it’s important to recognize that not all debts will be wiped out through this process. In Michigan, some debts will remain afterward, including taxes, criminal and traffic fines, back child support, most student loans and anything not specifically on the list of debts to be discharged.

Also, credit counseling is mandated by state law before filing for bankruptcy. Debtors must either contact creditors to obtain a workable payment plan or seek a debt consolidation loan within six months prior to filing. After the documents are filed, completing a financial management course is also required.

It’s important to understand the differences between the two bankruptcy types. Chapter 7, the discharging of debt while keeping a home or property not in default, and Chapter 13, a repayment plan that usually allows the debtor to keep a home, automobile and certain other property even though the loans for such properties are in default.

Michigan bankruptcy filings require extensive and often complex paperwork, including a two page petition and a list of all the debts to be discharged and property to be excluded. Deeds or titles of property owned and verification of income, expenses and financial transactions for two years prior to filing are also needed. The fee for Chapter 7 filings is $299, while Chapter 13 is $274.

Fortunately, once the paperwork is filed, the harassing phone calls from creditors can be stopped. In fact, creditors are required by law to cease contact once advised of the bankruptcy, but the court may not inform them for several weeks. To speed along this process and cease the calls, debtors should let creditors know of the filing right away and supply a case number.

The proceeding itself consists of a short meeting (called a 341 meeting) with a bankruptcy trustee. This individual may ask some questions in regards to financial status to clarify matters. The debtor is sworn under oath to answer. The debtors’ attorney and creditors can also attend this meeting.

Those considering this option will be relieved to know that bankruptcies don’t end up in court unless a debt or its discharge is disputed. Creditors have 60 days after the 341 meeting to challenge any debts included. Should there be no dispute, the process is generally finalized in three to six months.

Since there are so many steps involved in filing a Michigan bankruptcy, it is recommended that those considering this debt relief option contact a local attorney that specializes in bankruptcies for further assistance. The right attorney can be an invaluable asset, protecting your property and your interests to the full extent of the law during an emotional and difficult time.

If you’re thinking about filing for bankruptcy in the Detroit area, contact Michigan bankruptcy attorney A Better Way Bankruptcy. With nearly three decades of collective experience, their friendly, helpful and compassionate attorneys and professionals can help you obtain relief from debts, stop calls from creditors and get the fresh start you need.