Michigan Bankruptcy Attorneys
Medical bills, credit card debt, mortgage payments, car loans, tax debt...debt can become a tremendous weight not only on your family finances, but on your emotional well-being. Worry over debt can feel all-consuming.
If your debt feels like it has become unmanageable, it may be time to consider your options. At Acclaim Legal Services, we help people find solutions to their financial problems, including Chapter 7 fresh start and Chapter 13 reorganization as well as alternatives to bankruptcy.
We can help you understand how bankruptcy treats specific kinds of debt and how you can obtain debt relief and peace of mind. Contact our Michigan law office for a free initial consultation with an understanding bankruptcy lawyer.
Debt Discharge in Chapter 7 and Chapter 13
Chapter 7 and Chapter 13 handle debt differently. The type of bankruptcy filing that is most appropriate for you will depend upon the type and amount of debt you have and your current income and your future financial goals.
- Chapter 7 Debt Dischargeability: Under Chapter 7 you may be relieved of debt related to credit cards, medical bills, past due taxes, utility bills, personal loans, car loans, deficiency loans, and second mortgages on foreclosed homes.
- Chapter 13 Debt Dischargeability: Under Chapter 13 your debts are reorganized into a repayment plan, based on your budget. We can analyze what portion of your debt can be discharged. Debts that can be reduced and eventually eliminated are second mortgages or home equity loans, credit card bills, medical bills, personal loans, balance on repossessed vehicle, older tax debts, past utilities bill and more. Debt that cannot be discharged under Chapter 7 can be part of a Chapter 13 repayment plan.
Debts that Cannot Be Discharged
Some types of debt typically cannot be discharged, but can be reorganized in bankruptcy, such as:
- Alimony
- Child support
- Government insured student loans (although in some circumstances a student loan can be discharged for hardship)
- Tax liability for taxes less than three years old (tax debt is over three years old may be dischargeable)
- Debts for state or federal fines and penalties, such as traffic tickets and criminal restitution
- Secured loans for property you wish to keep (for example, a vehicle or home)
We are Here to Help
As experienced bankruptcy relief lawyers, we offer informative and compassionate advice about bankruptcy discharge of debt. We help our clients move toward a financially stable future. Contact us toll free at 866-438-5217 for a free initial consultation with an experienced Michigan bankruptcy lawyer.
