Dearborn Heights, Michigan
Chapter 13 Attorney
One of the Best Bankruptcy Attorneys in Dearborn, MI
Office Location
23843 Joy Rd
Dearborn Heights, MI 48127
Monday – Friday : 9:00 am – 5:00 pm
Saturdays : 9:30am – 11:30 in office or by phone
We offer late night appointments as late as 6:30 by phone or in person Mon-Thur.
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Are You Drowning In Debt and Can’t Seem to Find a Way Out? It’s Time to Take Control of Your Financial Future.
Frego Law, located in Dearborn Heights, Michigan, specializes in Chapter 13 bankruptcy. Our experienced bankruptcy lawyers are dedicated to helping individuals like you regain their financial footing and find relief from overwhelming debt.
Contact Frego Law today and schedule a consultation with our Chapter 13 lawyer. Take the first step towards financial freedom.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a legal process that allows individuals with a regular income to create a repayment plan to manage their debts. Also known as a “wage earner’s plan,” Chapter 13 bankruptcy provides a viable option for individuals who want to retain their assets and pay off their debts over time.
When someone files for Chapter 13 bankruptcy, create a repayment plan. This plan usually spans three to five years, during which individuals make monthly payments to a bankruptcy trustee.
Bankruptcy filings in July 2023 (including all chapters) totaled 35,716. This was a 15% increase from the July 2022 total of 30,862. [1]
These payments are based on the debtor’s income, expenses, and the types and amounts of their debts.
One of the significant advantages of Chapter 13 bankruptcy is that it allows individuals to keep their property, such as their homes and cars, as long as they continue making regular payments as outlined in the repayment plan.
How To Determine If You Are Eligible For Chapter 13 Relief
Chapter 13 bankruptcy is designed for individuals with a significant amount of debt that they are unable to repay in full. There is a maximum limit on the amount of secured and unsecured debts you can have to qualify for Chapter 13 relief.
One important factor in determining eligibility for Chapter 13 relief is having a regular income. This income can come from various sources, such as employment, self-employment, or government benefits. The key here is demonstrating to the bankruptcy court that you have a reliable and consistent source of income that enables you to make monthly payments as outlined in a repayment plan.
Secured debts, such as mortgages or car loans, are debts that have collateral attached to them. To be eligible for Chapter 13, your secured debts must be within the maximum limit set by the bankruptcy laws. This means you should have a reasonable chance of catching up on missed payments and keeping your assets, such as your home or car, during the repayment plan.
Unsecured debts, like credit card debt or medical bills, are debts that do not have collateral. The maximum limit for unsecured debts also comes into play when determining Chapter 13 eligibility. If your unsecured debts exceed the set limit, you may need to explore alternative debt relief options or consider Chapter 7 bankruptcy instead.
Chapter 13 relief is not available for businesses. Credit counseling must be completed within 180 days before filing for bankruptcy, and individuals will also be required to be up to date on income tax filings.
The Basics of the Chapter 13 Repayment Plan Process
Once you file for Chapter 13 bankruptcy, you, along with your bankruptcy attorney, will develop a repayment plan that outlines how you will repay your debts over the designated timeframe.
The repayment plan must be proposed to the bankruptcy court for approval. The court will review the plan, ensuring that it meets the requirements set forth by the bankruptcy laws and that it provides fair treatment to your creditors. The repayment plan must demonstrate that you are dedicating all of your disposable income towards repaying your debts.
Disposable income refers to the amount of money you have after deducting necessary living expenses from your monthly income. The repayment plan must show that you are capable of making regular monthly payments to the bankruptcy trustee, who will then distribute the funds to your creditors. These payments are typically made through wage garnishment or directly from your bank account.
During the repayment plan period, stay committed to making the agreed-upon payments. Failure to do so can result in your case being dismissed, leaving you exposed to potential legal actions from your creditors.
Throughout the repayment plan process, you will also need to attend a meeting of creditors, also known as the 341 meeting. This meeting provides an opportunity for your creditors and the bankruptcy trustee to ask questions about your financial situation and the proposed repayment plan.
Upon successful completion of the repayment plan, you will receive a discharge of your remaining eligible debts. This discharge is a court order that releases you from any further legal obligation to repay those debts. Certain types of debts, such as priority claims or debts that are not dischargeable under bankruptcy laws, may still need to be paid off.
What to Do to Prepare for Chapter 13 Filing
- Gather all financial documents: Before filing for Chapter 13 bankruptcy, gather all your financial documents. This includes bank statements, credit card statements, loan documents, tax returns, and any other relevant financial records.
- Assess your debts: Take an inventory of all your debts, including credit card debt, medical bills, personal loans, and any other outstanding financial obligations. Categorize them as secured or unsecured debts, as this will impact how they are treated in your repayment plan.
- Calculate your income and expenses: Determine your monthly income and subtract all necessary living expenses, such as rent or mortgage payments, utilities, groceries, transportation costs, and insurance premiums. This will help you understand how much disposable income you have available to repay your debts.
- Consult with our Chapter 13 lawyer: Work with our experienced Chapter 13 lawyers in Dearborn Heights or the surrounding area. We will guide you through the complex bankruptcy process, help you understand your options, and assist in developing a repayment plan that aligns with your financial situation.
- Attend credit counseling: Before filing for Chapter 13 bankruptcy, you must complete a credit counseling course from an approved agency. This course will educate you about managing your finances and exploring alternative options to bankruptcy. The certificate of completion is necessary when filing your bankruptcy petition.
- Organize your assets and property: Make a list of your assets and property, such as your home, vehicles, investments, and valuable possessions. Provide details about their value and any outstanding liens or loans associated with them.
- Consider the impact on your credit: Understand that filing for Chapter 13 bankruptcy will have an impact on your credit score and financial history. It will remain on your credit report for several years and may affect your ability to secure credit in the future.
Forty-six percent of bankruptcies are related to medical bills. [2]
Benefits of Hiring a Chapter 13 Lawyer in Dearborn Heights, MI
- Expertise and Knowledge: Our Chapter 13 bankruptcy lawyers specialize in bankruptcy laws and are well-versed in the legalities and requirements of the process. We have extensive knowledge of federal and state laws and can provide you with accurate and up-to-date information regarding your case.
- Personalized Guidance: Every bankruptcy case is unique, and what works for one person may not be suitable for another. Our experienced Chapter 13 bankruptcy lawyers understand this and will tailor our guidance to your specific financial situation. We will analyze your income, debts, and assets to develop a personalized repayment plan that aligns with your goals and capabilities.
- Protection from Creditors: Filing for Chapter 13 bankruptcy automatically triggers an automatic stay, which puts a stop to all collection activities by your creditors. This means that they cannot contact you, garnish your wages, or repossess your property during the bankruptcy process.
Our Chapter 13 bankruptcy lawyers will ensure that your rights are protected and handle any communication or negotiation with your creditors on your behalf. - Representation in Court: Throughout the bankruptcy process, there may be court hearings and meetings with creditors that require your attendance. Having our Chapter 13 bankruptcy lawyers by your side gives you professional representation during these proceedings. We will advocate for your interests, present your case effectively, and ensure that your rights are upheld.
- Efficient and Timely Process: Filing for Chapter 13 bankruptcy involves meeting strict deadlines and submitting numerous forms and documents. Our experienced bankruptcy lawyers will ensure that all the necessary paperwork is filled out correctly and submitted on time.
- Financial Guidance: Filing for bankruptcy is not just about eliminating debts; it's also an opportunity to gain control of your finances and develop better financial habits. We will provide you with valuable financial advice and guidance to help you rebuild your credit and improve your financial management skills.
Are You Feeling Overwhelmed by Your Financial Situation?
Are you considering filing for Chapter 13 bankruptcy in Dearborn Heights, Michigan?
Imagine a future where you can finally breathe easy, free from overwhelming debt and constant creditor calls. With Frego Law by your side, you can make this a reality. We will work tirelessly to create a personalized Chapter 13 repayment plan that fits your unique circumstances and allows you to keep your home and other assets.
Contact Frego Law today to schedule a consultation with our dedicated Chapter 13 lawyer. Take the first step towards financial freedom and a fresh start. Don’t let your debt hold you back any longer – reach out to us now.
Sources:
[1] Bankruptcy Statistics | ABI. (2023, September 11). Bankruptcy Statistics | ABI. https://www.abi.org/newsroom/bankruptcy-statistics
[2] Gupta, R. (2023, March 24). Personal Bankruptcy Statistics for 2023: States, Causes & Cost. FinMasters. https://finmasters.com/personal-bankruptcy-statistics/
Received Accolades:
206-2010, 2012, 2014-2021
American Bankruptcy Institute
Certified as a Bankruptcy Specialist by ABC
National Association of Consumer Bankruptcy Attorneys
Better Business Bureau
Office Location
23843 Joy Rd
Dearborn Heights, MI 48127
Monday – Friday : 9:00 am – 5:00 pm
Saturdays : 9:30am – 11:30 in office or by phone
We offer late night appointments as late as 6:30 by phone or in person Mon-Thur.
