For Michigan residents who find themselves with a lot of debt, the option of bankruptcy may be something worth considering. Maybe some unexpected healthcare expenses have suddenly given people more debt than they bargained for. Or, maybe that great business idea you had just didn't pan out. In these cases, a Chapter 13 bankruptcy might be something to consider.
What are the advantages of Chapter 13 bankruptcy? Chapter 13 allows a homeowner with overdue house payments to save their home from foreclosure. As mentioned in a previous post, when a Chapter 13 bankruptcy case is filed, the court imposes an automatic stay. This prevents collection actions -- such as collection calls and foreclosure actions -- from continuing.
Furthermore, a Chapter 13 bankruptcy may be able to help people save their home from foreclosure and their car from repossession. Under Chapter 13, both secured and unsecured debts can be included in a court-approved repayment plan. Under the repayment plan, people will make manageable payments over a three or five-year period. After this period elapses with a good payment history, any remaining eligible debt is wiped out.
In a repayment plan, people will make regular payments to a court-appointed trustee. The trustee then distributes the proceeds to their creditors in accordance with the plan. The payment plan is structured so that people will be able to cover their living expenses and their surplus income goes to their creditors.
The staff at the law offices of Charles J. Schneider, P.C. have plenty of experience with helping consumers out with the process of filing for Chapter 13. Attorney Charles J. Schneider is a certified consumer bankruptcy specialist who serves clients in southeastern Michigan.