Experienced Lansing Bankruptcy Attorneys

Bankruptcy Overview

photodune-596189-pay-bills-xsIf you are thinking about filing for bankruptcy, there are a lot of factors you need to consider.  There are different types of bankruptcy you can file and it can be difficult to decide what is the best choice for your family.  As your Michigan bankruptcy attorneys, our team at Grewal Law can help you weigh the pros and cons of the options to help you make an educated decision.

Once you determine what type of bankruptcy you will be filing, such as chapter 7 or chapter 13, we will be with you through every step of the proceedings from filing to final execution of the bankruptcy.


Chapter 13 Bankruptcy

One form of bankruptcy is chapter 13.  A major benefit to most people who file for chapter 13 is the ability to protect personal property from being liquidated to pay off debt.  Anyone with a regular income or who is the sole proprietor of a business can file for this type of bankruptcy.  As the person owing the debt, you will be required to make payments to your creditors over a 3 to 5-year period.  Once the payment period is completed, your debts will be clear except for some exclusions such as student loans.

A court appointed trustee through the United State Bankruptcy Court will examine your income and debts to determine the payments you will be paying.  The payments are designed to be affordable based on your current income.  We have the best bankruptcy attorneys in Michigan who are ready to help you understand how filing chapter 13 will impact your finances.


Chapter 7 Bankruptcy

Unlike with chapter 13, under chapter 7 you will be free from the debt you owe your creditors in a short period of time. The trustee appointed by the United States Bankruptcy Court will liquidate your non-exempt assets to pay off creditors making payments to them within three to six months of the start of your proceedings.

Michigan has exemptions for property not considered as assets during the course of any type of bankruptcy.  The exemptions allow you to keep some of your assets.  These include things such as clothing (except furs), burial plots, individual retirement accounts and emergency funds to provide basic necessities for your household during a 6-month period.

Once your non-exempt assets are handed over to the trustee, he or she will convert them into cash to pay your creditors.  Once they receive payment, your debt must be discharged.

Not everyone is able to file for this type of bankruptcy.  Anyone consider chapter 7 must pass a “means test” to determine the ratio of his or her income to expense ratio in order to proceed withfiling.  There are exceptions to having to take the means test.  If your household median income is at or below the state average for your household size, you are not required to take it.

Finally, if most of your debts are consumer debts or if you are a disabled veteran you will not be subject to a means test.  Individuals with high incomes who do not pass the means test will be able to file for chapter 13.


Hire an Experienced Lansing Bankruptcy Attorney

When deciding what type of bankruptcy to file for in court, you need the best bankruptcy attorneys in Michigan.  Our team at Grewal Law PLLC will help you examine the different options and will explain to you the outcome of each chapter if you were to proceed with filing.  It is our goal to help you make an educated choice that is the best option for your family.

We will also help you with the filing of your court documents and will be by your side throughout the entire process.

Call us today for your no obligation quote at 517-393-3000.