Bankruptcy

Bankruptcy ¹ is a legal tool that enables you to protect some of your assets and to stop harassment, lawsuits and foreclosures by creditors. Though bankruptcy is not to be taken lightly, there are many situations where it is the only resort. Let us help you determine your situation and stop legal proceedings that may greatly affect you!

Bankruptcy Law has many Chapters. The most common are Chapters 13 and 7. The goal of Chapter 13 Bankruptcy is a plan designed to help you reduce your debt and make payments that fit your income. Chapter 13 can stop foreclosures. If your wages are garnished, this plan can help stop these withdrawals.

Chapter 7 Bankruptcy is more aggressive and brings a quick resolution. This Chapter is designed to help those who have no means to pay back creditors. Creditors of unsecured debts (credit cards, pay-day loans, etc.) act quickly and often place you in situations that are impossible to resolve. Since Chapter 7 is not a repayment plan, you need to satisfy a certain formula called the “Bankruptcy Means Test.”  We can help you determine if you qualify.

Bankruptcy Timeline

What happens when you file for Chapter 7 and Chapter 13 Bankruptcy?

NOTE:  after filing for bankruptcy, you cannot file again for 8 years!

• Within 180 days prior to filing bankruptcy you will need to complete credit counseling. You must obtain a certificate of completion from authorized agency. You must not have a bankruptcy case dismissed 6 months prior to filing their petitions or they will be ineligible for filing.
• Within 6 months prior to filing bankruptcy you must meet residency requirements. This means that if they plan to file for bankruptcy in Michigan, you must reside in Michigan for at least 180 days before they file their bankruptcy petition.
• 2-3 months prior to filing bankruptcy you must stop using their credit cards. If you use your credit cards in this time you may be accused of fraud by your credit card providers and will be responsible for any new unsecured debt that is incurred.
• Bankruptcy filing will start when you file your bankruptcy petitions, statement of assets and liabilities and a list of your creditors. If you are filing for Chapter 13, you will also have to submit a proposed payment plan.
• A few weeks after you submit bankruptcy paperwork, the court will notify your creditors and issue an automatic stay to stop collection efforts. Creditors will no longer be allowed to contact bankruptcy petitioners. A bankruptcy trustee will be appointed to your case.
• 30-45 days prior to filing bankruptcy filing you will have to attend a mandatory meeting with your trustee and creditors. Most creditors will not attend this meeting unless they wish to dispute assets or terms. If you choose not to attend this meeting, your bankruptcy will be dismissed automatically.
• Approximately 60 days following the meeting, your debts will be discharged if you filed for Chapter 7 unless your creditors have disputes. Chapter 13 filers will continue to make their monthly payments as their debts are not subject to elimination.

Bankruptcy provides you with legal protection

If ,you are being harassed, pressured or received a summons then you need to act quickly to protect your assets. We have helped many clients in Michigan avoid foreclosure by filing for bankruptcy. If you are facing foreclosure, you need to speak with a Michigan bankruptcy lawyer as soon as possible to ensure your home doesn’t get foreclosed on. We at Todd A. Courser & Associates, PLLC understand that this is a very stressful and unsettling time in your life. Don’t give up hope. Call us today so we can help you untangle your financial web and get you "on the road" to a debt-free, financially-sound life.