Common Chapter 7 and Chapter 13 Bankruptcy Questions

Expert Bankruptcy Attorney in Grand Rapids, Kalamazoo, Muskegon, Big Rapids, and Lansing

Chapter 7 Bankruptcy: Fresh Start for Residents of West Michigan

  • What is Chapter 7 Bankruptcy? Chapter 7 bankruptcy is a legal process designed to help residents of Grand Rapids, Kalamazoo, Muskegon, Big Rapids, and Lansing discharge overwhelming unsecured debts such as credit card bills, medical expenses, and personal loans, offering a new financial beginning.
  • Eligibility for Chapter 7 Bankruptcy Individuals in these cities must pass a means test, which compares your income to the median income in Michigan. This test determines your eligibility by assessing if you have enough disposable income to pay off your debts. Further details and median income data can be found on the [United States Trustee’s website].
  • Protected Assets in Chapter 7 Bankruptcy Michigan law allows you to keep critical assets like your home and vehicle, subject to specific state exemptions. Detailed exemption guidelines for Michigan are available [here].
  • Impact on Your Credit Report A Chapter 7 bankruptcy may reflect on your credit reports for up to 10 years, but it is possible to rebuild your credit significantly sooner, with potential eligibility for mortgages arising as early as two years post-discharge.

Chapter 13 Bankruptcy: Debt Restructuring for Michigan Residents

  • What is Chapter 13 Bankruptcy? Chapter 13 bankruptcy enables individuals in Lansing, Muskegon, Big Rapids, Kalamazoo, and Grand Rapids to reorganize their debts into a manageable repayment plan, lasting between three to five years.
  • How Chapter 13 Bankruptcy Works You will propose a repayment plan to the court, detailing how you intend to settle your debts over time. This plan must receive court approval and may include provisions for catching up on delinquent mortgages or car loans.
  • Who Qualifies for Chapter 13 Bankruptcy? To qualify, you must an individual with a regular income and your debts must be below a certain limit.
  • Duration on Credit Report The record of Chapter 13 bankruptcy can stay on your credit report for up to seven years, potentially influencing your future financial opportunities during this period.

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