Detroit Bankruptcy Help & Advice
While bankruptcy often provides people with a fresh start, it can also have a life-long impact. At the Valentino Law Firm, we understand what a burden bankruptcy matters can be for Detroit area residents and businesses. Bankruptcy can drastically they may affect your mental and physical health, your personal relationships, and more.
When you consider bankruptcy, get advice of the Valentino Law Firm to help you through your decisions. The decision to file bankruptcy and which type of bankruptcy needs to be carefully considered. The Valentino Law Firm offers bankruptcy help in Detroit and the Tri-County Area regarding Chapter 7 and Chapter 13 bankruptcies.
The filing fees for Chapter 7 are $299, which includes a $245 case filing fee, a $39 miscellaneous administrative fee, and a $15 trustee surcharge. There may also be additional attorney fees. The filing fees for Chapter 13 consist of a $185 filing fee charged when the case is filed, which may be paid in installments if necessary, plus a trustee fee of 10 percent on all payments made under the plan. Attorney fees may be additional.
Bankruptcy Help
The basics of Chapter 7 bankruptcy
Chapter 7 bankruptcy is commonly referred to as liquidation. Available to individuals, married couples, and businesses, it is generally the simplest and quickest form of bankruptcy. A chapter 7 bankruptcy no-asset case requires you have no non-exempt property for the trustee appointed to your case to sell. This trustee will gather and sell your non-exempt property and will use the proceeds from the sale to pay your creditors.
After we have determined together that a Chapter 7 bankruptcy is right for you, we make sure that you will pass the means test, which proves that you do not earn more than the median income in Michigan. If your income is too high, our bankruptcy lawyer works with you to identify allowable deductions from your income to help you pass the means test.
Once you begin the filing for Chapter 7, you must go through credit counseling and pay any overdue tax returns within the first few weeks of filing. This step is beneficial for individuals struggling with financial debt since it helps individuals understand how they reached the point of bankruptcy and what potential traps to avoid in the future.
Chapter 13 in Detroit
For a Chapter 13 bankruptcy, commonly called wage earner’s bankruptcy or reorganization bankruptcy, you will need a stable income with disposable income (income left over after you pay the bare necessities of life such as shelter, food, and utilities). You must have no more than $1,010,650 in secured debt (debt involving property that your creditor might take if you do not make your payments) and $336,900 in unsecured debt.
This type of bankruptcy usually applies to businesses but can apply to individuals as well. The main difference between Chapter 13 and Chapter 7 is that a repayment plan is established for Chapter 13 bankruptcies, requiring the debtor to pay back debts instead of liquidating his or her assets. The filing of the Charlotte Chapter 13 bankruptcy petition must be accompanied by a proposed payment plan extending over three to five years. The proposed payment plan must provide for the payment of all "priority claims," such as taxes, in full.
Bankruptcy Advice - Don’t jump the gun
While bankruptcy protection helps alleviate the financial stressors such as stopping creditors from contacting you, help prioritize debt repayment, and encourage you to map out your financial future, it is not necessary for all people who have debt to file for bankruptcy. If you are thinking about filing for bankruptcy in Detroit and throughout Michigan, it is advisable that you talk with a bankruptcy attorney prior to filing because bankruptcy may not be the best option for your particular situation. Our firm can provide bankruptcy advice in Detroit as well as clients throughout the Tri-County Area and help save time and money if it is concluded that a client does not need to file for bankruptcy. You may not have to file, if:
- You have only a few debts and have strong defenses to each. That means that you have a good legal reason not to pay the debt. For instance, you borrowed money to buy a car and it is a lemon. Instead of filing a bankruptcy petition, you can raise your claims and defenses against the manufacturer, dealer and your creditor if you are sued or try to reach an agreement with them.
- Your after-tax pay is so low (less than $154.50 per week) that your wages legally cannot
be garnished.
- You do not own your home.
- You can afford to pay all of your current debts or bills without hardship.
- All of your income or assets are from Social Security, Veterans benefits, public assistance or unemployment compensation or, in some instances, a pension, alimony or child support.
- You owe only for medical bills. Medical creditors who get a judgment against you cannot force the sale of your house. Any court orders to pay them will have no effect until your house is sold or transferred. (But if your wages are garnished for medical bills, then filing may be wise.)
Detroit Bankruptcy Help - If you are thinking about filing bankruptcy in Detroit
We charge a low flat fee for our complete bankruptcy services—and only $300 to initiate the bankruptcy process. With offices located in Bloomfield Hills, he is well-positioned to assist clients in Wayne, Oakland, Macomb and Genesee Counties, including the Bloomfield, Pontiac, Waterford, Clarkston and White Lake areas.
Take the first step in restoring your financial future and talk to an attorney at the Detroit bankruptcy law firm, Valentino Law Firm today. You will be advised by a professional who understands bankruptcy laws in Michigan. We will talk to you about your unique financial circumstances and determine together if filing for bankruptcy will help your situation.
To arrange your free consultation with a Southeastern Michigan bankruptcy lawyer, contact the Valentino Law Firm in Metro Detroit at 248-334-5340.
Attorney Victor P. Valentino and his experienced legal staff provide thorough, effective legal assistance with civil litigation, workers compensation, bankruptcy, personal injury and insurance law to residents of the Detroit Tri-County area.
