Detroit
Bankruptcy Lawyer
One of the Best Bankruptcy Attorneys in Detroit, MI
Detroit Service Area
Located Just to the West of Detroit in Dearborn Heights.
23843 Joy Rd
Dearborn Heights, MI 48127
Monday – Friday : 9:00 am – 5:00 pm
Saturdays : 9:30am – 11:30 by phone only
Ann Arbor offers in office appointments as late as 6:30 on Wednesday, but offers over phone late night appointments Mon-Thur
Highly Recommended
Get a Free Consultation
Whether you’re considering filing for Chapter 7 or Chapter 13 bankruptcy or seeking alternatives to resolve your debts, Frego Law is devoted to providing personalized and strategic solutions tailored to your unique financial circumstances. Schedule a consultation with our bankruptcy lawyers and start your journey towards a debt-free life.
The city of Detroit’s debts totaled $18 billion. The general fund deficit was $327 million. When the city filed bankruptcy, it wiped about $7 billion of these debts and brought other financial relief, like pausing city pension payments for a decade. [1]
Bankruptcy is a legal process that offers individuals and businesses the opportunity to address financial difficulties and obtain relief from unmanageable debt burdens. Two common types of bankruptcy for individuals and businesses are Chapter 7 and Chapter 11 bankruptcy.
Chapter 7 Bankruptcy in Detroit
Chapter 7 bankruptcy (liquidation bankruptcy) is a legal process that allows individuals and businesses to eliminate most of their unsecured debts, such as credit card debt, medical bills, and personal loans.
In Detroit, the Chapter 7 bankruptcy process is overseen by a bankruptcy trustee, who is responsible for reviewing the filer’s financial documents, conducting the meeting of creditors, and liquidating any non-exempt assets to repay creditors.
Not all debts can be discharged through this process. Certain tax debts, student loans, and child support obligations are typically not eligible for discharge in a Chapter 7 bankruptcy.
Chapter 13 Bankruptcy in Detroit
Chapter 13 bankruptcy (reorganization bankruptcy) can offer a lifeline to those struggling with debt in Detroit. This type of bankruptcy allows individuals to create a repayment plan to gradually pay off their debts over a period of three to five years, giving an opportunity to regain control of finances and work towards a more stable future.
One of the key benefits of filing for Chapter 13 bankruptcy is that it allows individuals to keep their assets, such as a home or car, while still addressing their debt.
Chapter 13 bankruptcy can also provide protection for co-signers on loans or debts, as well as stop foreclosure proceedings on a home.
Debt Relief Options in Detroit
Detroit residents filed at least 43,020 consumer bankruptcy cases in court from 2008 to 2015. [2] Around 66% of Detroiters have some form of debt in collections, including credit card debt, medical debt, and government fines and fees. [2]
For individuals in Detroit seeking debt relief, there are several options available:
- Credit Counseling: Non-profit credit counseling agencies can provide financial education and assistance in creating a budget and repayment plan.
- Debt Management Plans: Credit counseling agencies can also help negotiate lower interest rates and monthly payments with creditors to create a manageable repayment plan.
- Debt Consolidation: Individuals can consolidate multiple debts into a single loan with a lower interest rate, potentially lowering monthly payments.
- Debt Settlement: Debt settlement involves negotiating with creditors to settle debts for less than the amount owed.
- Bankruptcy: This is a last resort option for those with overwhelming debt. For a free consultation, contact our bankruptcy experts.
Creditor Harassment in Bankruptcy
Creditor harassment can come in many forms, including constant calls and letters, threats of legal action, and even personal visits to the debtor’s home or workplace. These tactics can be not only intimidating but also illegal.
The Fair Debt Collection Practices Act (FDCPA) is a federal law that prohibits abusive, deceptive, and unfair debt collection practices. This includes actions such as harassing phone calls, threats of violence, or using obscene language. [3]
Automatic Stay in Bankruptcy
An automatic stay is a key provision in bankruptcy law that provides debtors with immediate relief from creditor actions such as lawsuits, repossessions, foreclosures, and debt collection efforts. When a debtor files for bankruptcy, an automatic stay goes into effect, halting all creditor actions and providing the debtor with breathing room to reorganize their finances or have their debts discharged.
It allows you to take a step back from the barrage of creditor actions to work with a bankruptcy trustee and formulate a plan to address your debts.
The automatic stay can also help to prevent your assets from being further depleted. If you are facing foreclosure on your home, the automatic stay can temporarily halt the foreclosure process, giving you the opportunity to negotiate with the lender and potentially save your home.
Some types of debts, such as child support and certain tax obligations, are not necessarily subject to the automatic stay.
Foreclosure Defense
One common foreclosure defense strategy is to challenge the lender’s right to foreclose on the property. This may involve scrutinizing mortgage documents for any errors or irregularities, such as improper or incomplete paperwork or violations of consumer protection laws. If the lender has not followed the proper procedures or has violated the homeowner’s rights, our foreclosure defense attorney can use these findings to protect the homeowner’s interests.
Another potential defense is to negotiate with the lender to modify the terms of the mortgage. This can include adjusting the interest rate, extending the loan term, or reducing the principal balance. By demonstrating the homeowner’s willingness and ability to make modified payments, our foreclosure defense attorney can work to achieve a more favorable outcome for the homeowner.
Detroit Bankruptcy Lawyer
Frego Law is a leading bankruptcy law firm in the Detroit area, offering a comprehensive range of services to help individuals and businesses navigate the complex process of filing for bankruptcy. We:
- Have earned a reputation for providing effective and personalized legal guidance
- Are committed to helping you find a path to financial freedom
- Understand that every bankruptcy case is unique, we listen to your concerns and goals
- Provide a compassionate and understanding approach
- Ensure that that you understand every step of the bankruptcy process
Schedule a free consultation today!
Sources
[1] Revisiting Detroit’s bankruptcy: “It must never happen again.” (n.d.). https://www.axios.com/local/detroit/2023/07/18/bankruptcy-revisited-detroit-michigan-2013.
[2] The Financial Well-Being of Detroit Residents: What Do We Know? (n.d.). https://poverty.umich.edu/files/2020/08/Financial-Wellbeing-of-Detroiters_82020.pdf.
[3] FDCP https://www.ftc.gov/legal-library/browse/rules/fair-debt-collection-practices-act-text
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
Detroit Service Area
Located Just to the West of Detroit in Dearborn Heights.
23843 Joy Rd
Dearborn Heights, MI 48127
Monday – Friday : 9:00 am – 5:00 pm
Saturdays : 9:30am – 11:30 by phone only
Ann Arbor offers in office appointments as late as 6:30 on Wednesday, but offers over phone late night appointments Mon-Thur