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Facing overwhelming debt can feel isolating, but Chapter 13 bankruptcy offers a path toward relief. Fortunately, this approach can help you discharge your debts without losing everything you have worked for.
Chapter 13 allows individuals with steady income to reorganize debt into a manageable repayment plan that typically lasts three to five years. By relying on this approach, you can stop a foreclosure, end collection calls, and get the fresh financial start you deserve. Get started for no money down and let a Dearborn Chapter 13 bankruptcy lawyer advise you of your options.
Chapter 13 bankruptcy is a tool for individuals with regular income to restructure their debts. It stands apart from Chapter 7, which allows debtors with little to no assets to erase their obligations entirely. People who do not qualify for Chapter 7 because of the income limits often choose Chapter 13.
This process takes time, however. In order to discharge some of your debts, you will need to commit to a three-to-five-year payment plan. These plans, which must be approved by the court, repay certain creditors a portion of what they are owed before the remaining debts are forgiven. This approach also allows you to catch up on your past due bills related to property, such as a car or home. The goal is for you to stay current on any mortgages or car notes, should you decide to keep that property.
You will experience some of the benefits of filing under Chapter 13 right away. The automatic bankruptcy stay shields you the moment you file your petition. It prevents creditors from suing you, garnishing your wages, or even making collection calls. A Dearborn Chapter 13 bankruptcy attorney can advise you on how this process works.
There are several requirements that you must meet to be eligible for a Chapter 13 bankruptcy discharge. It is important to note that this process is only open to individuals. Businesses must choose a different type of bankruptcy to pursue. You are also prohibited from filing if you have recently filed for bankruptcy in the past few years. This is the case even if it was ultimately dismissed.
To qualify, your total debts must be under a federal maximum. This includes separate limits on your secured and unsecured debt. If you owe more than this threshold, you will have to find a different type of bankruptcy or work out your obligations another way.
The bankruptcy court and trustee will need extensive information from you, including your tax returns. In fact, you are barred from filing at all if you have not filed your income tax returns for each of the past four years.
One of the biggest requirements relates to your income. Chapter 13 involves restructuring debt in a way that allows you to pay most of it back. You will need a minimum amount of resources that allow you to make these payments each month for the next few years. Your income includes wages, tips, and unemployment benefits, among other things. A Dearborn bankruptcy attorney can answer your questions about Chapter 13 eligibility.
Restructuring your debts through the bankruptcy process is a big commitment, but it can also offer you a path toward financial freedom once your debts are discharged. From reviewing eligibility requirements to guiding you through the payment plan process, our team is here to help you get the outcome you deserve.
Let a Dearborn Chapter 13 bankruptcy lawyer from our firm help you navigate your way out of overwhelming debt without having to spend any money up front. Reach out today to discuss your options during a private consultation or fill out our online debt calculator.
We have locations available by appointment in the following areas. Please call us to speak to an attorney and set up an initial meeting.
We are a debt relief agency helping people file bankruptcy under the United States Bankruptcy Code.
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