Bankruptcy

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Bankruptcy

If you are facing a foreclosure, repossession or lawsuits, a bankruptcy could help you put an end to it all and get a fresh start. Michigan Legal Group can give you information about bankruptcy and can help explore your options to that fresh start. Not only that but we stay with you after the bankruptcy as well.

Chapter 7Chapter 11Chapter 13

Chapter 7
The chapter of the Bankruptcy Code providing for "liquidation,"
( i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors.)

A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property.

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Chapter 11
The chapter of the Bankruptcy Code providing for reorganization, usually involving a corporation or partnership. A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.

A Chapter 11 bankruptcy case begins with the filing of a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. A petition may be a voluntary petition, which is filed by the debtor, or it may be an involuntary petition, which is filed by creditors that meet certain requirements. 11 U.S.C. §§ 301, 303. A voluntary petition must adhere to the format of Form 1 of the Official Forms prescribed by the Judicial Conference of the United States. Unless the court orders otherwise, the debtor also must file with the court: (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a schedule of executory contracts and unexpired leases; and (4) a statement of financial affairs. Fed. R. Bankr. P. 1007(b). If the debtor is an individual (or husband and wife), there are additional document filing requirements. Such debtors must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts.11 U.S.C. § 521. A husband and wife may file a joint petition or individual petitions. 11 U.S.C. § 302(a). (The Official Forms are not available from the court, but may be purchased at legal stationery stores or downloaded from the Internet at www.uscourts.gov/bkforms/index.html.)

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Chapter 13
The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)

A Chapter 13 bankruptcy case is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause." (1) If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. §1322(d). During this time the law forbids creditors from starting or continuing collection efforts.

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Information on this site has been gathered from the U.S. Courts website located at: http://www.uscourts.gov for informational purposes. If you would like information on how any of these chapters would apply to your situation, please don't hesitate to contact us!

With so many variables, we can help wade through your options and decide which chapter, if any, is right for you!

We proudly help people file for bankruptcy under the U.S. Bankruptcy Code.

Let Michigan Legal Group in Traverse City help with your bankruptcy case.
U.S. Supreme Court
 
Michigan Legal Group - Bankruptcy Services in Traverse City

Choose a Professional!

While you could surf the Internet and get some Legal information, we truly recommend you personally contact a lawyer when facing legal issues and consequences. It would even be in your best interest to pay for an hour of advice when interviewing an attorney. Hopefully you begin to understand that there are issues and consequences to every transaction.

When you contact a laywer make sure they are experienced in the area you need them most. Don't take the least expensive approach just to save a little money. It could actually cost you a lot more later. Find an attorney you are comfortable with and one that can help you the most.

Hire an attorney before you need an attorney!

When to call a Lawyer:

  1. Starting a business
  2. Business transaction
  3. You've been arrested
  4. You've been injured
  5. Facing a foreclosure or repossession
  6. Divorce
  7. Custody issues

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