Effective Debt Relief Solutions for You and Your Family
If you and your family are dealing with overwhelming amounts of debt, it can feel as though you will never be able to climb out from under the burden. A good bankruptcy attorney should begin by exhausting every effort possible to help to try and avoid bankruptcy You may be able to work out settlements with creditors, including your mortgage company. For many people, filing for bankruptcy can be the best solution for discharging debts and getting a fresh financial start. Bankruptcy may also be able to help you avoid foreclosure and stay in your home.
At the law firm of Sean Patrick Cox, Attorney & Counselor at Law, we can assist you and your family through the process of Chapter 7 or Chapter 13 bankruptcy. Filing for bankruptcy should not be a source of shame or embarrassment. Bankruptcy is a common solution that thousands of people use every year in Michigan and the United States. Discuss your situation with an experienced lawyer to determine if bankruptcy may be appropriate for your needs.
Chapter 7 vs. Chapter 13 Bankruptcy
Before filing for bankruptcy, it is important to understand the difference between Chapter 7 and Chapter 13 and how those differences could impact your situation.
Chapter 7 Bankruptcy:
Also called a liquidation bankruptcy, a Chapter 7 bankruptcy allows a debtor to completely discharge unsecured debts, including credit cards and medical bills. Retirement accounts are safe from liquidation. If you own a home you may be able to keep your home by reaffirming the mortgage debt, however, most banks will require that your mortgage payment is current in order for you to be allowed to reaffirm.
Chapter 13 Bankruptcy:
In a Chapter 13 bankruptcy, you will devise a repayment plan that will allow you to pay back your creditors over a period of three to five years. After this period is over, any remaining debts are discharged. This option can be helpful for people who are concerned about losing their property or do not qualify for Chapter 7 bankruptcy. Chapter 13 also allows you to pay off your IRS debt without penalty and interest. You can retain your home no matter how far behind in payments you are, as long as you enter into a repayment plan.
In both Chapter 7 and Chapter 13 bankruptcy, all foreclosure proceedings and collections will stop immediately and you will be on your way towards debt relief.
Bankruptcy is a Helpful Financial Tool
Learn more about Chapter 7 and Chapter 13 bankruptcy protection by talking with an experienced attorney about your situation. Our law firm will help you understand whether bankruptcy is right for you and guide you through the process with confidence. Contact our office in Grand Rapids to schedule a free initial consultation at 616-942-6404.
