Practice Areas

Chapter 13

Chapter 13 Bankruptcy

Michigan

Most people can weather a short lapse in income, but few individuals or families can handle an extended break without experiencing serious financial difficulty. Chapter 13 bankruptcy is often an appropriate strategy for people who have experienced a temporary gap in income due to an on-the-job injury, a medical problem, a pregnancy leave, a divorce, or the loss of overtime pay. Once income is regained they simply can't get caught up with the increases in fees, higher interest rates and back payments.

Chapter 13 bankruptcy is a good strategy for people who have the ability to pay back their debt and who can do so, given time.

Filing Chapter 13 bankruptcy in Michigan gives you breathing room.

• It stops creditor harassment
• It stops the bank from foreclosing due to late or missed payments
• It can reduce the amount of unsecured debt you owe so that you are only liable for a percentage of the total debt
• It can extend the period in which you make payments on your debt so that your payments are lowered
• It can reduce your interest rates on credit cards, unsecured debt and mortgage arrearages to 0%
• It can stop the accumulation of late fees on credit cards and your mortgage

Debt restructuring is common. Many hardworking people have used debt restructuring to get their finances back on track. If your credit rating has suffered because of late or missed payments, Chapter 13 debt reorganization has the added advantage of beginning the credit reparation process.

Chapter 13 debt reorganization allows a debtor to develop a repayment schedule to reduce existing debt over a period of 3-5 years by reducing interest rates, avoiding late fees and penalties, and requiring payment of only a percentage of some bills. You may have tried yourself to negotiate a forbearance agreement with some of your creditors; filing Chapter 13 bankruptcy is a better, more secure way to handle large amounts of debt because you won't wind up back in trouble with your creditor if you miss one payment and it provides a structured plan to pay back the creditors in an organized fashion providing priority to secured creditors such as a mortgage lender. No monies go to the unsecured creditors until all mortgage and vehicle payments are up-to-date.

Every bankruptcy situation is different and it will be important for you to consult an experienced and knowledgeable bankruptcy attorney to advise you on the specifics of your case. At Acclaim Legal Services, your initial consultation with a bankruptcy lawyer is free. You have nothing to lose by investigating bankruptcy as an option for debt relief. Please contact our offices to schedule an appointment and begin the process of regaining peace of mind and financial stability. Call us at 866-261-8282.

Acclaim Legal Services is a debt relief agency helping people file for Chapter 13 bankruptcy in Wayne County, Oakland County, Macomb County, Livingston County, St. Clair County, Genesee County, and Washtenaw County including Detroit, Livonia, Flint, Southfield, Pontiac, Mt. Clemens, Warren, Royal Oak, West Bloomfield, Troy, Ann Arbor, Dearborn, Sterling Heights, Ypsilanti, and Farmington Hills. We help people file for bankruptcy relief under the Bankruptcy Code.