Chapter 13 Bankruptcy in Michigan, 248 Lawyers.
Filing a chapter 13 bankruptcy in Michigan is not the end; rather it is a new beginning. Call 248 Lawyers P.C. and see how you can reboot your credit.
If you are filing a chapter 13 bankruptcy in Michigan, a proposed repayment plan must be submitted. After reasonable monthly expenses have been paid, how much money will you have left over to apply toward outstanding bills? Furthermore, how will the money be divvied up among your creditors? Priority claims (such as taxes and child support arrearages) must be paid in full, while unsecured debts (i.e. credit card debt and medical bills) are usually partially paid. Dependent upon the judgments involved with your case, unsecured debts can be paid off for as little as 10 cents on the dollar.
In addition to the above listed general requirements, a Chapter 13 bankruptcy repayment plan must pass the following three tests:
- It must be delivered in good faith.
- Unsecured creditors must be paid at least as much as if a chapter 7 bankruptcy was filed. Generally, this is the value of all nonexempt property you own.
- All disposable income must be paid into the plan for at least three years (you may qualify for five years if you meet the second test and pay at least as much as a chapter 7).
Once you file a chapter 13 bankruptcy, you must begin making your plan payments. Generally these payments will be directly withdrawn from your wages. Therefore, you or your attorney should make arrangements with the court to deduct payments from your wages.
248 Lawyers P.C. is located in Madison Heights. We serve clients in Oakland, Saint Clair, Livingston, Macomb, Wayne, Sanilac, Washtenaw, Genesee, and Lapeer County, in addition to the entire State of Michigan.
http://www.uscourts.gov/FederalCourts/Bankruptcy.aspx
http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics.aspx
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