Ann Arbor/Ypsilanti, Michigan
Chapter 13 Lawyer
One of the Best Bankruptcy Attorneys in Ann Arbor/Ypsilanti, MI
Office Location
2498 Washtenaw Avenue
Ypsilanti, MI 48197
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
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Feeling Overwhelmed by Your Financial Situation and Considering Filing for Chapter 13 Bankruptcy?
Filing for Chapter 13 can relieve you from overwhelming debt and a chance to reorganize your finances. With Frego Law by your side, you can feel confident knowing you have a dedicated and experienced legal team fighting for your best interests.
Contact Frego Law today to schedule your free consultation and take the first step towards a fresh start. Don’t let debt hold you back any longer – let us help you navigate the complexities of Chapter 13 bankruptcy and set you on the path to financial freedom.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a legal process that allows individuals to restructure or eliminate their debts while keeping their assets. Chapter 13 focuses on creating a repayment plan that lasts three to five years.
The primary goal of Chapter 13 bankruptcy is to help debtors catch up on missed payments and regain control of their financial affairs. This type of bankruptcy is particularly beneficial for individuals with regular income who want to protect their property from foreclosure, repossession, or other legal actions.
To file for Chapter 13 bankruptcy, debtors must have a reliable source of income, and their secured and unsecured debts must fall within specific limits set by the bankruptcy code.
Secured debts, such as mortgages or car loans, are debts that are backed by collateral.
Unsecured debts, like credit card bills or medical expenses, do not have any collateral attached to them.
One of the key advantages of Chapter 13 bankruptcy is the ability to keep valuable assets, such as homes or vehicles, as long as the debtor can make regular payments as outlined in their repayment plan. This plan is determined by the bankruptcy court and is based on the debtor’s disposable income, which is the money left over after paying for necessary living expenses.
During the repayment period, debtors are required to make monthly payments to a bankruptcy trustee, who then distributes the funds to the creditors as outlined in the plan. The repayment plan typically prioritizes secured debts that are necessary for the debtor’s daily life, such as mortgage or car payments.
Unsecured creditors, such as credit card companies, may receive only a portion of what they are owed or nothing at all, depending on the debtor’s disposable income.
Individual Chapter 13 filings saw a 23% jump during the first half of 2023. [1]
Reasons to File Chapter 13 Bankruptcy
If you have fallen behind on your mortgage payments and are facing the threat of losing your house, Chapter 13 allows you to halt the foreclosure process and propose a repayment plan to catch up on missed payments. This can provide you with the chance to save your home and establish a more affordable payment arrangement.
At the end of the first quarter of 2023, housing-related debt topped $12.04 trillion and accounted for approximately 71% of household debt in the U.S. [2]
If you are at risk of having your vehicle repossessed due to past-due payments, Chapter 13 can help protect your car. By including your car loan in the repayment plan, you can repay the missed payments over time and prevent repossession.
Another significant benefit of Chapter 13 bankruptcy is the ability to reduce or eliminate certain types of debt. Through the repayment plan, you can prioritize your secured debts, such as mortgages or car loans, while potentially reducing or eliminating unsecured debts, such as credit card bills or medical expenses.
Chapter 13 bankruptcy also provides a structured payment plan that suits your individual circumstances. You can retain your assets while creating a payment plan based on your disposable income. This enables you to catch up on missed payments and gradually repay your debts over a specified period, typically three to five years.
Once you file for bankruptcy, an automatic stay goes into effect, which prevents creditors from attempting to collect on your debts or taking legal action against you.
Over time, as your payment history improves, your credit score may begin to recover, giving you a fresh start to rebuild your creditworthiness.
How Do I Qualify for Chapter 13 Bankruptcy?
To be eligible for Chapter 13 bankruptcy, you must have a reliable source of income. Whether you’re employed, self-employed, or receive regular payments from another source, having a consistent stream of income is required. This is because Chapter 13 involves creating a repayment plan to pay off your debts over time, and your income determines your ability to make these monthly payments.
In addition to having a regular income, there are also specific debt limits you must meet to qualify for Chapter 13. These limits are adjusted periodically to account for inflation.
Credit counseling from a court-approved agency is required within a specific timeframe before filing for Chapter 13 bankruptcy. This counseling aims to assess your financial situation, explore alternatives to bankruptcy, and provide you with the necessary information to make an informed decision about filing.
Not all types of debt can be included in a Chapter 13 repayment plan. Obligations such as child support, alimony, most tax debts, and certain student loans cannot be discharged through Chapter 13 bankruptcy.
What To Do Before Filing Chapter 13 Bankruptcy
Evaluate your financial standing honestly. Gather all your financial documents, such as bank statements, credit card bills, and loan agreements. This process will help you determine the total amount of debt you owe and understand your income and expenses more accurately.
Consult with our experienced bankruptcy attorneys. Bankruptcy laws can be complex, and our attorneys will guide you through the entire process. We can help you understand the eligibility criteria, evaluate your options, and guide you in creating a repayment plan that suits your specific financial situation.
Credit counseling is another essential step before filing for Chapter 13 bankruptcy. As required by law, you must complete credit counseling from a court-approved agency. This counseling session aims to assess your financial condition, explore alternatives to bankruptcy, and educate you about the implications and responsibilities of filing for bankruptcy.
Identify all your creditors and classify them as secured or unsecured. Secured debts are backed by collateral, such as a house or a car, while unsecured debts do not have any collateral backing them. Understanding the different types of debts you have will help you determine how they can be addressed within a Chapter 13 repayment plan.
Benefits of Hiring a Chapter 13 Lawyer in Ann Arbor/Ypsilanti, Michigan
Our experienced Chapter 13 lawyer in Ann Arbor/Ypsilanti will have in-depth knowledge of the bankruptcy laws specific to Michigan and can guide you through each step of the process.
We will evaluate your financial situation and help you determine if Chapter 13 bankruptcy is the right option for you. Our experienced bankruptcy attorneys will review your income, expenses, and outstanding debts to assess your eligibility for Chapter 13 bankruptcy. If Chapter 13 is not the best fit for your circumstances, we will advise you on alternative debt relief options that may be more suitable.
We will work with you to develop a repayment plan that not only satisfies the requirements of the bankruptcy court but also takes into account your unique financial situation.
Our lawyers will handle all communication with your creditors, ensuring that they comply with the terms of the repayment plan and do not engage in any harassing or unfair collection practices. This can provide you with peace of mind and alleviate the stress associated with constant creditor harassment.
Are You Drowning In Debt and Need a Fresh Start? Look No Further!
Imagine a life without creditors constantly hounding you and the stress of overwhelming debt weighing you down. With Frego Law by your side, you can finally regain control of your finances and start rebuilding your future.
Don’t delay any longer. Contact Frego Law today and take the first step towards a brighter financial future. Let their team of dedicated professionals guide you through the Chapter 13 process and help you achieve the debt relief you deserve. Call now to schedule your free consultation.
Sources:
[1] Bankruptcy filings surge in first half of 2023 in US, Epiq says. (2023, July 3). Reuters. https://www.reuters.com/legal/bankruptcy-filings-surge-first-half-2023-us-epiq-2023-07-03/
[2] Top 5 Reasons Why People Go Bankrupt. (2023, June 15). Investopedia. https://www.investopedia.com/financial-edge/0310/top-5-reasons-people-go-bankrupt.aspx
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
2498 Washtenaw Avenue
Ypsilanti, MI 48197
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