Macomb County Chapter 13 Bankruptcy

Chapter 13 Bankruptcy

Chapter 13 bankruptcy can play an important role in your ability to resolve debt, retain your home and vehicle, and move on toward a more secure financial future. The Chapter 13 bankruptcy process is a complicated legal matter, and having skilled legal guidance on your side is the best way of protecting your rights and obtaining optimal results. Reach out to an experienced Michigan Chapter 13 bankruptcy attorney for the help you need today.

How a Chapter 13 Bankruptcy Can Help

A Chapter 13 bankruptcy consolidates debt under the authority of the court. The idea is to set up reasonable repayment terms that afford legal protection of your primary assets, such as your home and vehicle. The purpose behind this category of bankruptcy includes all the following:

• Consolidating, reducing, and prioritizing your debts
• Obtaining a comprehensive repayment plan that affords favorable terms
• Obtaining protection from the court in relation to your creditors
• Improving your credit rating

If a Chapter 13 bankruptcy is a viable option for you, it can benefit you in all the following ways:

• Optimal repayment terms of 0 percent interest
• A means of both reducing and restructuring the debt that plagues you
• The space to reach the financial goals you set for yourself and improve your credit score

How It Works

Chapter 13 bankruptcy is designed to help people who have an income but have fallen further and further behind with their payments – to the point that they’re unable to keep up. With a Chapter 13 bankruptcy, your secured debt obligations and living expenses are prioritized, which means payments for unsecured are deferred until you’re caught up with primary expenses.

In terms of your unsecured debts, you’ll be responsible for applying your best efforts to pay them over the course of your bankruptcy program, which includes a payment plan for from 36 to 60 months. At this point, all remaining unsecured debt will be discharged.

Secured Debt vs. Unsecured Debt

The kind of debt you can’t discharge, or eliminate, is secured debt, which – in addition to your home and car – includes the following:

• Student loans
• Child support and alimony
• Certain taxes
• Secured credit cards

Unsecured debt that can be discharged, however, includes all the following:

• Medical bills
• Credit card debt
• Legal judgments and garnishments
• Personal loans

Protecting Your Home

By filing a Chapter 13 bankruptcy in Michigan, you can stop a foreclosure on your home as long as you file prior to a foreclosure sale. If your mortgage company is not interested in negotiating a better path forward, a Chapter 13 bankruptcy may be your best – or even your only – option to save your home.

Discuss Your Situation with an Experienced Michigan Chapter 13 Bankruptcy Attorney Today

The well-respected Chapter 13 bankruptcy attorneys at Aiello & Associates have an impressive track record that spans many years of helping clients like you resolve their crushing financial concerns favorably – affording them renewed financial hope in the process. We are on your side, so please contact us for more information today.