Flint, Michigan
Chapter 13 Attorney
One of the Best Bankruptcy Attorneys in Flint, MI
Office Location
1324 W Bristol Rd
Flint, MI 48507
Monday – Friday : 9:00 am – 5:00 pm
Saturdays : 9:30am – 11:30 by phone only
Appointments as late as 6:30 Mon-Th by phone only
Highly Recommended
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Are You Overwhelmed by Debt and Struggling to Find a Way Out?
Frego Law is here to help. Our Chapter 13 lawyers specialize in guiding individuals through the bankruptcy process, providing the knowledge and support needed to regain control of their financial situation.
Imagine the relief of having a customized debt repayment plan that allows you to keep your assets and protect your future. With Frego Law, you can achieve a fresh start and peace of mind.
Contact Frego Law today to schedule a consultation with our dedicated Chapter 13 Lawyers in Flint, Michigan. Take the first step towards a brighter financial future.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy, also known as a “wage earner’s plan,” is a debt consolidation and repayment program designed for individuals. It allows debtors to reorganize their debts and create a manageable repayment plan over a period of three to five years.
This type of bankruptcy is often chosen by those with a regular income who want to protect their assets and catch up on past-due payments, such as mortgage arrears, car loans, and tax debts.
By filing for Chapter 13 bankruptcy, you can halt foreclosure proceedings, prevent the repossession of your assets, and stop harassing creditor calls. Instead of dealing with multiple creditors individually, you make a single monthly payment to the bankruptcy trustee, who then distributes the funds to your creditors according to your repayment plan.
One of the significant advantages of Chapter 13 bankruptcy is that it allows debtors to keep their property while repaying their debts. This is particularly valuable for individuals who fear losing their homes, cars, or other valuable assets in Chapter 7 bankruptcy. Chapter 13 bankruptcy may enable debtors to eliminate or reduce certain types of debt, such as second mortgages or unpaid taxes, that are not dischargeable in Chapter 7 bankruptcy.
Chapter 13 bankruptcy remains on your credit report for seven years, which may have an impact on your credit score. During and after your repayment plan, you can focus on rebuilding your credit by making timely payments and demonstrating responsible financial behavior.
How Do I Qualify for Chapter 13 Bankruptcy?
The first requirement to qualify for Chapter 13 bankruptcy is having a regular income. This means having a stable source of income that allows you to make monthly payments towards your debts. Whether it’s through employment, self-employment, or other means, having a consistent income is essential to demonstrate your ability to fulfill the repayment plan.
Your unsecured debt must not exceed a certain limit set by bankruptcy laws. Unsecured debts include credit card debts, medical bills, and personal loans, among others. This debt limit varies by jurisdiction and is adjusted periodically.
Within 180 days before filing your Chapter 13 bankruptcy petition, you must receive credit counseling from an authorized agency. This counseling session will help you understand your financial situation, explore alternatives to bankruptcy, and provide you with the necessary tools to make an informed decision.
There are eligibility restrictions based on previous bankruptcy filings. If you have already received a discharge under Chapter 7, 11, 12, or 13 bankruptcy within certain time frames, you may not be eligible to file for Chapter 13 bankruptcy immediately.
Chapter 13 bankruptcies were up by more than 26% in 2022, even as total bankruptcies declined by 11.7%. [1]
What to Do Before Filing Chapter 13 Bankruptcy?
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Gather all the necessary financial documentation:
This includes documents such as your income statements, tax returns, bank statements, and a detailed list of your debts and assets. Having these documents organized and readily available will not only streamline the filing process but also provide accurate information for your bankruptcy petition. -
Consult with an experienced bankruptcy attorney:
Our attorneys specializing in Chapter 13 bankruptcy will provide you with invaluable guidance and advice tailored to your specific situation. We will review your financial documents, assess your eligibility for Chapter 13 bankruptcy, and explain the implications and benefits of filing. We will also help you determine whether there are any alternative debt relief options that may be more beneficial for your circumstances. -
Attend credit counseling with an approved agency:
This counseling session will help you explore alternatives to bankruptcy, assess your financial situation, and create a feasible budget and repayment plan. -
Analyze your budget:
A Chapter 13 bankruptcy involves creating a plan to repay your debts, which typically spans three to five years. It is important to determine whether you have enough disposable income to cover your living expenses and make the required plan payments. This analysis will help you understand whether Chapter 13 bankruptcy is the right option for you and avoid any potential complications during the repayment period.
Repayment Plan
- Filing the bankruptcy petition: To initiate the process, the debtor must file a bankruptcy petition with the bankruptcy court, including the proposed repayment plan. This triggers an automatic stay, which halts collection actions from creditors.
- Determining the repayment duration: The duration of the repayment plan is typically either three or five years, depending on the debtor's income and their ability to fulfill the plan's requirements.
- Calculating the repayment amount: The debtor's disposable income, which is the income left after paying necessary living expenses, is a crucial factor in determining the monthly repayment amount. The repayment plan must prioritize certain debts, such as child support or tax obligations, and ensure that secured creditors receive at least the value of their collateral.
- Submitting the plan to the court: The debtor's proposed repayment plan must be submitted to the bankruptcy court for approval. Creditors have an opportunity to object to the plan if they believe it unfairly discriminates against them or doesn't meet the necessary legal requirements.
- Confirming the plan: After considering any objections and making necessary modifications, the bankruptcy court reviews and confirms the repayment plan. Once confirmed, it becomes legally binding on both the debtor and the creditors.
- Making regular payments: Throughout the repayment plan, the debtor must make regular payments to the bankruptcy trustee, who then distributes the funds to creditors according to the plan. Regular payments are crucial for a successful Chapter 13 bankruptcy and to avoid dismissal of the case.
- Completing the plan: Following the completion of the repayment plan, the debtor receives a discharge, meaning the debtor is released from any further liability for the discharged debts, as outlined in the confirmed plan.
Working with an Experienced Chapter 13 Lawyer
Our bankruptcy attorneys can help you determine the best course of action for your financial recovery. We will carefully review your income, expenses, debts, and assets to develop a personalized strategy. With our expertise, they can help you create a realistic budget and repayment plan that takes into account your disposable income and obligations.
We will assist you in completing the required documentation accurately and on time, ensuring that no crucial details are overlooked. This attention to detail can prevent complications and delays in your case, allowing for a smoother process.
Our Flint bankruptcy lawyers will handle communication with your creditors, relieving you of the stress and harassment often associated with debt collection calls and letters. We will ensure that your rights are protected under the Fair Debt Collection Practices Act and put an end to any unethical or illegal collection practices.
Frego Law’s experienced bankruptcy attorneys will represent you in court proceedings. We will advocate for your best interests and ensure your rights are protected throughout the process. If any issues or disputes arise, we will be by your side, ready to address them promptly and effectively.
Are You Drowning In Debt and Looking for a Way to Get a Fresh Start?
Imagine a life without mounting debts and constant creditor harassment. With Frego Law by your side, you can have a chance to reorganize your finances and create a sustainable repayment plan that fits your needs.
Don’t wait any longer. Contact Frego Law today and take the first step towards a brighter financial future. Schedule a consultation with our Chapter 13 lawyers and regain control of your life.
Source:
[1] O’Connell, B. (2023, August 8). What is Chapter 13 bankruptcy? USA TODAY Blueprint. https://www.usatoday.com/money/blueprint/banking/what-is-chapter-13-bankruptcy/
Received Accolades:
206-2010, 2012, 2014-2021
American Bankruptcy Institute
Certified as a Bankruptcy Specialist by ABC
National Association of Consumer Bankruptcy Attorneys
Better Business Bureau
Office Location
1324 W Bristol Rd
Flint, MI 48507
Monday – Friday : 9:00 am – 5:00 pm
Saturdays : 9:30am – 11:30 by phone only
Appointments as late as 6:30 Mon-Th by phone only