Credit Issues in Detroit, Michigan

NOTE: This information is offered to provide general information only. It is not intended as legal advice. To find out about your particular situation, please contact us for a FREE office consultation. Call 734-591-4890 today.

• Partial Payment Plan: A Bankruptcy Alternative
• How to Dispute Credit Report Errors
• Wage Garnishments
• Repossessions
• Foreclosures
• Forfeitures
• Seizures
• Levies
• Utility Shutoffs
• Collection Harassment

Partial Payment Plan: A Bankruptcy Alternative

If your total debt is not a very large amount (say, just a few thousand dollars) and you have regular income, bankruptcy is probably not for you. However, you can go to court and ask for a "partial payment plan" to pay off your creditors over time, in installments. If the court orders such a plan, it will stop your creditors from harassing you, and other unpleasant activities such as repossessions and foreclosures. Come in for your free office consultation, and see if this alternative might be just what you need. Call our lawyers at 734-591-4890 today.

Wage Garnishments

If you are currently experiencing a garnishment, you will be able to stop the garnishment by filing a bankruptcy case. As soon as a bankruptcy case under either Chapter 13 or Chapter 7 is filed, the Bankruptcy Court issues an order that prohibits creditors from garnishing or levying any of your assets including wages and income tax refunds. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. What distinguishes our office from others is that we will hasten the notification process to garnishing creditors by faxing notice as soon as a case is filed. The creditor must then file a release of the garnishment with the court where it was filed and notify the employer. The employer must recognize the release of garnishment and cease the withholding of wages. The process of physically stopping the garnishment may take as long as two weeks or more, but if any money is garnished from wages earned after the filing of a bankruptcy case, the money must be returned to you. Our persistence and promptness in pursuing garnishing creditors sets us apart from other attorneys.

Repossessions

If you have recently experienced the repossession of a vehicle that you are purchasing, you may be able to get the vehicle back from the auto loan lender by filing a Chapter 13 bankruptcy case. Only Chapter 13 bankruptcy provides you with the opportunity to compel the lender to accept a repayment plan. The auto loan lender does not have to accept a repayment plan in a Chapter 7 bankruptcy.

You must have full coverage collateral protection insurance to obtain possession of the repossessed vehicle. A bankruptcy judge will not otherwise order the return of the vehicle. If you file a Chapter 13 bankruptcy case, we cannot begin to obtain possession of the vehicle without full coverage collateral protection insurance. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order that stays or prohibits the lender from selling the vehicle at an auction. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. What distinguishes our office from others is that we will hasten the notification process to the auto loan lender by faxing notice as soon as a case is filed.

Usually once a vehicle has been repossessed, the auto loan lender will apply to the Secretary of State and obtain a transfer of title in order to sell the vehicle at an auction. The auto loan lender will give you a 10-day notice prior to the auction during which time you may, without filing bankruptcy, regain possession of the vehicle by paying the entire remaining balance of the auto loan. However, if you file a Chapter 13 bankruptcy case you do not have to pay the entire remaining balance to gain possession. It is possible to gain possession and lower the car payment! In a Chapter 13 bankruptcy you do not have to pay back the entire loan to own the car; you are only required to pay its used value. The loan can also be rewritten to be paid back over a longer period of time, i.e., from three to five years. It is important that you act immediately to prevent the sale from occurring. If the vehicle is sold at an auction, it can no longer be returned.

Foreclosures

If you are facing a foreclosure or a sheriff's sale of your mortgage, you will be able to stop the foreclosure sale by commencing a Chapter 13 bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the mortgage company from following through with its foreclosure sale. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. What distinguishes our office from others is that we will hasten the notification process to the mortgage company by faxing notice as soon as a case is filed. Only Chapter 13 bankruptcy provides you with an opportunity to compel your mortgage company to accept a repayment plan. The repayment plan includes making the current monthly mortgage payment and providing for a cure of the mortgage arrears over a reasonable period of time. It is locally accepted practice that a 36-month cure of a mortgage arrearage is a reasonable period of time. For example, if you have a $400 current monthly mortgage payment and you are $3600 behind in mortgage payments, your plan would have to provide $400 per month plus $100 per month for total payment of $500 per month to maintain your current monthly mortgage payment and to cure your mortgage arrearage over a 36-month period of time. The payment would be made to the Chapter 13 trustee and he or she would make your mortgage payments for you.

The Chapter 13 bankruptcy case must be filed before the foreclosure sale occurs. A repayment plan cannot be composed in a Chapter 13 bankruptcy case where the mortgage foreclosure sale has already occurred.

Forfeitures

If you are facing a land contract forfeiture, you will be able to stop the forfeiture by commencing a Chapter 13 bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the land contract vendor from following through on its forfeiture judgment. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. What distinguishes our office from others is that we will hasten the notification process to the land contract vendor by faxing notice as soon as a case is filed. Only Chapter 13 bankruptcy provides you with an opportunity to compel the land contract vendor to accept a repayment plan. Unlike a mortgage arrearage, a land contract arrearage must be cured promptly.

Seizures

If you are facing a seizure of personal property by a bailiff or court officer, you will be able to stop the seizure by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the judgment creditor from following through on its seizure. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. What distinguishes our office from others is that we will hasten the notification process to the bailiff or court officer by faxing notice as soon as a case is filed. Under most circumstances it is recommended that you file a Chapter 13 bankruptcy case because only Chapter 13 bankruptcy provides you with an opportunity to compel the creditor to accept a repayment of the judicial lien imposed upon the property.

Levies

If you are facing a levy from the Internal Revenue Service or the State of Michigan Department of Treasury, you will be able to stop the levy from continuing by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the government from continuing its levy. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach the taxing authorities until two weeks after the case has been filed and they are usually slow to respond. What distinguishes our office from others is that we will hasten the notification process to the taxing authorities by faxing notice as soon as a case is filed and obtaining the earliest possible release of the levy.

Under most circumstances it is recommended that you file a Chapter 13 bankruptcy case because only Chapter 13 bankruptcy provides you with an opportunity to compel the taxing authority to accept a repayment plan. The debt may not be discharged (forgiven) by the filing of a Chapter 7 bankruptcy and therefore must be paid in full. The repayment of the tax debt in a Chapter 13 plan can usually occur over a three to five year period of time without further interest or penalties.

Utility Shutoffs

Collection Harassment

If you are receiving embarrassing telephone calls from creditors to your home, your neighbors or on the job demanding payment of past due bills or constant notices demanding payment of past due bills, you will be able to stop these calls and notices by filing a bankruptcy case. As soon as a bankruptcy case under either Chapter 13 or Chapter 7 is filed, the Bankruptcy Court issues an order which stays or prohibits the creditors from continuing to demand payment. The failure of a creditor to obey the order may result in sanctions against the creditor and/or its collection agent.

Charles J. Schneider, P.C. is your personal bankruptcy lawyer serving Westland, Dearborn, Flint, Ann Arbor, Livonia, and the counties of Wayne, Oakland, Livingston, and Washtenaw in Michigan since 1995. Contact The Firm today for a free consultation.