A Debt Repayment Plan With Important Protections
Some individuals find that, while their debts are overwhelming, they still have enough cash flow to make some payments to their creditors. Chapter 13 bankruptcy is an option for people who find themselves in this situation.
At the law firm of Michael M. Malinowski PLC in Grand Rapids, Michigan, I offer a free initial consultation to answer your questions about Chapter 13 bankruptcy. I am a lawyer with 25 years of bankruptcy law experience.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a debt repayment plan for wage earners. All secured debts — such as home mortgages — must be paid in full. For unsecured debts, such as credit card bills, you will prepare a payment plan with your attorney that takes into account all sources of income you have and your estimated living expenses. The income that remains after living expenses are satisfied is then divided up among unsecured creditors in a plan that must be approved by the court.
A Chapter 13 bankruptcy can be used to strip second mortgages from homes. Even tax debts can be put in a Chapter 13 payment plan. Chapter 13 bankruptcy is sometimes referred to as a wage earner's Chapter 11 bankruptcy.
Why Would I File Chapter 13 Bankruptcy Instead of Chapter 7 Bankruptcy?
Some people file Chapter 13 bankruptcy because they make too much money to file Chapter 7 bankruptcy.
Others file Chapter 13 bankruptcy to stop a home foreclosure or repossession, or because they have assets they would lose by filing Chapter 7 bankruptcy. As your lawyer, I will help you analyze your assets and your debts and determine if Chapter 7 or Chapter 13 bankruptcy would be the best option for you.
Free Bankruptcy Attorney Consultation
You don't have to live with the stress of overwhelming debt. For a free consultation about Chapter 13 bankruptcy, call me, lawyer Mike Malinowski, at 888-339-6017 or fill out our contact form on this Web site. My law office is in Grand Rapids, Michigan.
