Bankruptcy and Debt Relief Attorneys of lower Michigan
The Michigan law firm that will stop those collection calls
If you are threatened with a wage, tax refund, or bank account garnishment, or facing a home foreclosure or vehicle repossession, the Dietrich Law Firm can help you. We will stop lawsuits, collection calls, judgments, and foreclosures. We offer debt settlement negotiations, mortgage loan modification and refinancing, and bankruptcies.
Should I file for bankruptcy?
You may benefit from a bankruptcy if you:
-Are having difficulty paying daily living expenses (i.e. household bills for food, utilities.)
-Are paying only minimum amounts (or nothing) on your credit cards
-Use a credit card to make payments on other debts
-Cannot budget yourself out of debt within five years
-Are getting notices that your mortgage is being sent to the foreclosure department
-Are getting notices that one of more of your creditors are starting legal proceedings to collect
-Have had your vehicle repossessed
-Have had a severe financial setback, such as losing your job or a major client, or suffering a divorce or a costly illness
When we meet with you we will analyze your assets, secured debt and exemptions so you will know before you file if any of your assets are at risk.
What are the types of bankruptcy?
There are three types of consumer bankruptcy:
Chapter 7—A “straight bankruptcy” wipes out most, if not all, unsecured debts (except those listed below) and provides an immediate fresh start. A Chapter 7 is also called a “liquidation bankruptcy” because assets and other valuables not protected by exemptions or burdened with secured debt will be sold by the trustee to pay creditors. However, 95 percent of all Chapter 7 filings are “no asset” cases, meaning that it is unlikely you will have to give property to the Trustee for liquidation.
-For consumers, filing for Chapter 7 relieves most debts, but not all as you may want to keep your home or vehicles and some debts are not dischargeable. Businesses, corporations, and partnerships may also file for Chapter 7.
When the following conditions exist, filing Chapter 7 may be your best bankruptcy option:
You cannot pay your debts
Your creditors are pestering you or threatening to sue you, repossess your vehicle or foreclose on your home
Please keep in mind that any co-signors’ obligation is not discharged in your bankruptcy unless they are filing with you
Chapter 13—This type of bankruptcy sets up a repayment plan to pay back a portion of your debts over three to five years. Some secured debt can be restructured and every effort is made to ensure you end up with a reasonable monthly plan payment.
-Filing Chapter 13 helps consumers and sole proprietorships restructure their debts over three to five years.
If you need some breathing room to pay your debts, Chapter 13 could be your best bankruptcy options, especially if you—
Are behind on your mortgage payments
Owe the IRS
Do not qualify for Chapter 7
Need relief from collection proceedings
Have debts with non-filing co-signers
Depending on the facts of your case you can pay as little as nothing or as much of 100% of your debts over three to five year plan.
– Certain individuals and commercial enterprises may file Chapter 11, repaying creditors through a court-approved plan of reorganization.
In Chapter 11 bankruptcy, certain individuals or commercial enterprises pay creditors according to a court-approved reorganization plan. This allows you or your business the opportunity to get back on its feet and back on a path to profitability. The bankruptcy court approves or rejects your plan. You should consult both your financial and legal advisors to determine whether this serious step is right for you and your business. Not every Chapter 11 case results in restored profitability. Chapter 11 could also ultimately result in liquidation through conversion to Chapter 7.
Our experienced bankruptcy attorneys can help you determine if bankruptcy is right for you and which chapter is the best suited for your particular situation.
What debts does bankruptcy not cover?
Bankruptcy does not relieve you of all debts. The following are generally still your responsibility at bankruptcy:
Claims for death or injury caused by operating a vehicle while intoxicated
Criminal fines, restitution, or penalties
Debts incurred by fraud or willful and malicious injury
Mortgages and car loans (secured debt) unless you surrender the collateral
Luxury goods purchases of more than $550 made within 90 days of filing
Cash advances of $825 or more within 70 days of filing
Our experienced bankruptcy attorneys can review your debts with you to give you a full understanding of the debts covered and not covered.
Chapter 13’s $1500.00 or $350.00 Down*
Payment Arrangements Available
Generally, Payment Required Before Filing Petition $1500.00 or $350.00
*$350.00 down requires 1 year as a W-2 employee with a manageable household budget and acceptable plan payments fully funded by a wage order.
Chapter 7’s from $150.00 Down**
Generally, Payment Required Before Filing Petition $813 to $933 (single/joint)
**Reduced down payment requires a documented recoverable wage garnishment (less recovery fees) sufficient to cover the difference between the pricing schedule and the down payment.