Chapter 13 Bankruptcy

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Michigan Chapter 13 Bankruptcy Lawyers Assisting with Debt Relief

There are different types of bankruptcy that consumers can file in the United States, including both Chapter 7 and Chapter 13 cases. While Chapter 7 is the most common type of bankruptcy filed by consumers, this type of case is not right for everyone. Sometimes, the most appropriate course of action is to file for bankruptcy under Chapter 13 of the U.S. Bankruptcy Code. You should not wait to discuss your options with an experienced Chapter 13 bankruptcy attorney at Lucido & Manzella, P.C.

Why File Chapter 13?

Chapter 7 bankruptcy is a faster process that does not require you to follow a payment plan. However, Chapter 13 might still be the best option for you under certain circumstances, such as:

  • Your income is higher than the median for your state, so you do not pass the means test
  • You have too much property or assets that are not protected by exemptions that you want to retain
  • You need to catch up on mortgage or car loan arrears to prevent foreclosure or repossession

Have an experienced attorney evaluate your situation and advise you on which type of bankruptcy case is right for you.

Overview of a Chapter 13 Case

Chapter 13 is often called the reorganization bankruptcy because when you file, the bankruptcy trustee reorganizes and prioritizes your debts. Then, the trustee will determine a monthly payment amount that is reasonable based on your income and expenses. You agree to follow this repayment plan for three or five years, depending on your income.

Instead of making numerous payments to all of your creditors, you will make one payment to the court. The bankruptcy trustee will allocate the funds in order of priority. When you successfully complete your repayment plan, the court can discharge your remaining qualified debts.

A Chapter 13 repayment plan can include mortgage arrears, which allows you to catch up on past-due payments in a manageable manner. When you file, an automatic stay goes into effect, which halts all collection activity, including foreclosure. This gives you the opportunity to negotiate with your mortgage lender to find another option that allows you to keep your home when possible. This is only one benefit of the Chapter 13 process.

How a Chapter 13 Bankruptcy Lawyer Can Help

Chapter 13 is a complex process, and you want to make sure that you have a successful outcome. This means that you should have the right legal representation right from the start. Our attorneys can:

  • Gather all necessary information to prepare and file your petition
  • Defend against creditors trying to lift the automatic stay
  • Ensure that your payment amount is fair and reasonable
  • Seek a modification of your payment plan if your circumstances change
  • Work to make sure that you receive a successful discharge at the end of your case

As your case proceeds, we’ll be here to represent you every step of the way.

Learn More from Our Chapter 13 Bankruptcy Lawyers

When you need relief from complicated debts, you should discuss a possible case with a Chapter 13 bankruptcy attorney at Lucido & Manzella, P.C. Please contact us for a consultation today.

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