Chapter 13 Bankruptcy

Reorganize Your Bills
Chapter 13 is referred to as a court-ordered debt consolidation. Chapter 13 will stop a pending foreclosure or car repossession. It will stop a wage assignment or wage garnishment. It will even prevent the IRS from taking any tax refunds that you are entitled to. In short, a Chapter 13 will allow you some breathing room so you can reorganize your finances.

Reorganizing your debts
By filing a Chapter 13, you are essentially consolidating all of your debts into one large debt. Payments are made either once a month by you to a court-appointed trustee, or are deducted automatically from your paycheck, whichever you prefer. The trustee will then distribute your money among all of your creditors according to a plan that we will help you formulate.

In a Chapter 13 you only have to pay back what you can afford. This determination is based on your income, your living expenses, the amount of your debt, your assets and types of debt you have. Chapter 13 can help you deal with recent student loans, recent tax debts, parking tickets and other debts that cannot be discharged in a Chapter 7.

The filing process
Filing Chapter 13 is very simple. After your case is filed with the court, you will go with your attorney to a bankruptcy courtroom for an informal meeting with a trustee. This meeting takes place about six weeks after your case is filed. The purpose of the meeting is for a trustee to go over your case to make sure the plan that we have filed on your behalf is workable. Assuming that the trustee recommends your plan-and he/she almost always does-your case will be set for confirmation in front of a judge. Then, your plan payments will be automatically deducted from your paycheck, or if you have no paycheck, the payment method can be arranged.

Duration of Chapter 13
A typical Chapter 13 plan will last between three and five years. If your financial situation improves during that time, you may choose to pay off your Chapter 13 plan in a shorter amount of time without penalty.

If your income declines during this period, or unexpected expenses occur, then your plan can be converted to a Chapter 7 plan.Other Bankruptcy Resources

At the Nickerson Law Firm, in Port Huron, Michigan, we serve the following counties in Eastern Michigan: St. Clair, Macomb, Lapeer, and Sanilac.

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Disclaimer: The information provided here is to be used as general information only and is not intended to suffice as legal advice upon which you can rely for your particular situation. In the event you have specific questions, please call us or another qualified attorney.

We are a designated debt relief agency under the Federal Law, and we provide legal assistance to consumers seeking relief under the bankruptcy code. We are a Debt Relief Agency. We help people to file for bankruptcy under federal law. For more information about bankruptcy law in Michigan, visit our Frequently Asked Questions page