Chapter 13 bankruptcy can be an option for Wayne County consumers who are looking to stop creditor harassment and prevent foreclosure. Under Chapter 13, consumers who qualify are allowed to make manageable payments over a period of three to five years. After the period is ended, all qualifying debts are discharged if the plan has been complied with in full.
Chapter 13 bankruptcy is not available to all debtors. Chapter 13 is available to individuals whose liabilities are less than certain prescribed maximums. For 2015, individuals whose secured debts are less than $1,149,525 and whose unsecured debts are less than $383,175 are eligible for Chapter 13 bankruptcy.
Chapter 13 bankruptcy may be an attractive option for homeowners seeking to stop foreclosure. A Chapter 13 bankruptcy filing will halt foreclosure proceedings and may afford homeowners the opportunity to catch up on delinquent mortgage payments.
There are a few more requirements for Chapter 13 eligibility. A consumer is not eligible for Chapter 13 bankruptcy if a prior bankruptcy petition was dismissed within 180, or fewer days, for certain reasons. These reasons include the consumer's willful failure to comply with orders of the court, the consumer's willful failure to appear before the court or a voluntary dismissal after creditors sought relief from the bankruptcy court to recover property they held liens on. A consumer must also usually receive credit counseling within 180 days of filing a bankruptcy petition. Michigan residents who are contemplating a move to file for bankruptcy may find it useful to get more information about Chapter 13 bankruptcy.
Source: United States Courts, "Chapter 13 - Bankruptcy Basics," accessed on Aug. 9, 2015