Chapter 13 Bankruptcy Attorney in Clinton Township

Even with a steady income, you may be unable to pay all your monthly bills. This can be due to many reasons. You may have previously fallen behind due to a job loss or reduced hours. You may have stacked up a huge medical debt from an unexpected illness or injury in the family. Your small business may have suffered a downturn or collapse due to economic conditions. Whatever the cause, you now face a backlog of debt that you cannot pay with your current income. This can lead to creditor harassment, threats of lawsuits, mortgage default, repossessions, and sleepless nights.

Contact our experienced Chapter 13 bankruptcy attorney in Clinton Township at (586) 600-7623 to schedule a confidential consultation.

Turn to Clinton Township Chapter 13 Bankruptcy Lawyers with a Proven Track Record

Our team understands how stressful and difficult it can be to face the prospect of bankruptcy. However, it is vital to remember that this option has been made available to you by the federal government and is designed to give Americans a safe and effective form of relief when faced with dire financial circumstances. At Ziulowski & Associates, we have helped thousands of people successfully take advantage of bankruptcy options since 2003. 

• Chapter 13 Bankruptcy Benefits: Chapter 13 bankruptcy offers a structured way to address overwhelming debts through a repayment plan. Unlike Chapter 7, it allows individuals to retain their assets, making it a suitable choice for those with a stable income. Through reorganizing debts, individuals can manage arrears on secured debts like mortgages and car loans, providing a pathway to financial stability.
• Eligibility and Process: To qualify for Chapter 13, candidates must demonstrate a regular income and not exceed statutory debt limits. Our Clinton Township office guides clients through preparing their reorganization plan and presenting it to creditors and the court, ensuring compliance with legal requirements. This approach mitigates risks of dismissal and enhances the likelihood of a favorable outcome.

Your Local Bankruptcy Lawyer in Macomb County

Our presence in Clinton Township and years of service in Macomb County uniquely position us to understand the regional economic challenges our clients face. We provide insights into local creditor expectations and leverage local courts' familiarity with bankruptcy proceedings to your advantage. Our commitment is to personalized and regionally relevant legal support.

Frequently Asked Questions About Chapter 13 Bankruptcy

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a legal process that allows individuals to reorganize their debts under a court-approved repayment plan. This type of bankruptcy is often referred to as a wage earner's plan because the debtor must have a regular income to qualify. Over three to five years, debtors make payments to creditors through a trustee. 

Unlike Chapter 7, which involves the liquidation of assets, Chapter 13 allows debtors to retain their property while catching up on past-due obligations like mortgages or car loans. It's a solution designed for those who need time to pay back what they owe without losing significant assets. For residents of Clinton Township, working with a local Chapter 13 bankruptcy attorney can ensure that all factors are considered and that the most beneficial plan is established.

How Does Chapter 13 Bankruptcy Differ from Chapter 7?

Chapter 13 and Chapter 7 bankruptcies serve different purposes and cater to varying financial situations. Chapter 7 is a liquidation bankruptcy, meaning that a trustee may sell off non-exempt assets to pay off debts, offering a quick discharge of unsecured debts like credit card balances and medical bills. Conversely, Chapter 13 focuses on reorganization, catering to individuals who have a steady income and want to protect their assets from liquidation. 

This process allows debtors to gradually pay back debts through a structured plan while keeping current on secured lien payments. Importantly, in a Chapter 13 filing, debts like child support or alimony payments can be incorporated into the repayment plan, providing more room for financial maneuvering. Consulting with Ziulkowski & Associates, PLC ensures that clients in Macomb County receive tailored advice suitable for their needs.

What Are the Costs Involved in Filing Chapter 13 Bankruptcy?

The costs associated with filing Chapter 13 bankruptcy include court fees, attorney fees, and other administrative costs. A filing fee is required, which is typically around $310, but this may vary. Attorney fees may differ based on the complexity of the case and the attorney's experience. For many, the long-term financial benefits and relief from creditor pressure outweigh the initial costs. It is crucial to consider the repayment plan's terms, as these payments are integrated into the debtor's budget over the agreed period. 

A professional consultation with a Chapter 13 attorney will provide an estimate of total costs and the potential financial benefits of pursuing bankruptcy. This consultation can help you make informed decisions tailored to your situation.

Can I File for Chapter 13 Bankruptcy If I’m Self-Employed?

Yes, self-employed individuals can file for Chapter 13 bankruptcy, provided they have a regular income. This includes not just wages but any dependable income sources that demonstrate sufficient cash flow to facilitate plan payments. For self-employed residents of Clinton Township, working closely with a bankruptcy attorney is important to navigate the additional documentation required for self-employment income verification. 

The process often involves presenting detailed financial records, tax returns, and business profit and loss statements. A comprehensive evaluation ensures the self-employed debtor can make informed decisions about asset protection and future financial stability while managing both personal and business debts within the reorganization framework.

What Are the Time Limitations for Completing a Chapter 13 Plan?

The duration of a Chapter 13 plan typically spans three to five years, depending on the debtor's income relative to the state median. If a debtor's income is below the median, the plan may be set at three years unless circumstances extend it. Alternatively, if their income exceeds the median, a five-year plan is standard. This timeframe allows debtors to catch up on overdue obligations while maintaining current payments on necessary expenses. 

The structured timeline ensures that debt relief is manageable and sustainable. During this period, debtors are protected from collection actions, opening a path toward financial rehabilitation. Regular review and adjustment of the plan can be discussed with your attorney to ensure adherence to legal requirements and alignment with the debtor's evolving financial circumstances.

For a free consultation with our experienced Chapter 13 bankruptcy attorney in Clinton Township, call (586) 600-7623 or send us a message today.