Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows individuals with regular income to reorganize their debts.  It stops foreclosure, garnishments and repossessions.  Your Chapter 13 bankruptcy case MUST be filed before the sheriff's sale to stop a Michigan foreclosure.  Do NOT wait until the day of the sale to contact a bankruptcy attorney.  If the Michigan foreclosure sale occurs before your file your bankruptcy case, it will be too late to use bankruptcy stop the foreclosure process. 

, get caught up on the mortgage, and car payments, stop garnishments and keep their property.  A repayment plan is calculated based on your income and reasonably necessary living expenses.  After that is calculated, unsecured creditors typically get what is left over in payments over a 3 to 5 bankruptcy plan.  

 Chapter 13 bankruptcy is reorganization or repayment of some or all of your debt. There are several reasons people file Chapter 13 bankruptcy. Typically, people file Chapter 13 because they want to stop a foreclosure and save their home or stop a vehicle repossession and save their car. To stop a Michigan foreclosure, you MUST file Chapter 13 BEFORE the sheriff's sale. You should NOT wait until the last day since it may be too late. To stop foreclosure and save your house, you must have the ability to pay your mortgage. Currently, bankruptcy does NOT change your monthly mortgage payment, your interest rate or the terms of your mortgage. Rather, it allows you to take all the payments you are behind and spread them over a 3 to 5 year period. You are therefore required to pay your regular mortgage payment and something towards the total amount for which you are behind. This is called Repayment of Debt. . 

The chapter 13 bankruptcy plan will allow you to keep enough money to pay your reasonably necessary living expenses such as your mortgage, groceries, utilities, clothing, medical bills, etc.  What is left over will be used to pay some or all of your unsecured debts.  

Bankruptcy plans typically run somewhere between 3 and 5 years.  If you qualify, once your successfully complete the obligations under your plan, will receive a discharge of your debts.