What You Need To Know About Filing For Chapter 13 Bankruptcy In Michigan

In this article, you can discover…

• The differences between Chapters 7 and 13 bankruptcy.
• How a Chapter 13 repayment plan works and how long it may take.
• Which debts can and can not be discharged through Chapter 13 bankruptcy.

What Are The Key Differences Between Chapter 7 And Chapter 13 Bankruptcy?

In most Chapter 7 bankruptcy cases, unsecured creditors are paid nothing and your debts are discharged (or fully forgiven). In Chapter 13, most unsecured creditors are paid lesser amounts (sometimes just pennies on the dollar) through a payment plan proposed by you and your attorney to the trustee of your bankruptcy case.

What Is The Minimum Income Needed To Qualify For Chapter 13 Bankruptcy?

There are no minimum income levels required to file for Chapter 13 bankruptcy. You must simply earn enough to make your debt repayment plan possible. For example, if your repayment plan requires you to pay $600 per month for 60 months, you must earn enough to be able to contribute that amount monthly.

Attorney Vincent Carlson is a practiced, experienced bankruptcy law attorney serving Michigan. For over 15 years, he has helped clients just like you pay off debt through Chapter 13 bankruptcy and seek relief, hope, and a more financially stable future.

Have questions, or in need of legal guidance? Reach out to Vincent E. Carlson & Associates, PLC for an initial consultation today.

How Does The Chapter 13 Bankruptcy Repayment Plan Work?

After your repayment plan has been approved by the bankruptcy judge, you will send your monthly payments to the Chapter 13 trustee, who submits that money to creditors in an order based on priority. You will have a maximum of 60 months or five years to repay your debts through a Chapter 13 repayment plan.

Which Debts Are Eligible For Discharge Under Chapter 13 Bankruptcy?

Debts eligible for discharge under Chapter 13 bankruptcy include credit card debt, medical debt, past due car loan payments, and past due mortgage payments.

Debts that are not eligible for discharge include alimony, child support, income taxes, student loans, traffic tickets, court costs, and 401 K loans.

Still Have Questions? Ready To Get Started?

For more information on filing for Chapter 13 bankruptcy in Michigan, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (231) 726-4357 today.