If you’re located near Grand Rapids, Michigan, and looking for reliable guidance on bankruptcy and debt relief, look no further than DebtErasers! As one of Kent County's leading law firms, we specialize in helping residents navigate bankruptcy, creditor harassment, and other financial challenges.
Dealing with debt can feel incredibly daunting, and it's important to know that you don't have to go through this alone. There are legal options available designed to help ease your financial burden. If you find yourself struggling to keep up with debt payments, consider that filing for bankruptcy might be a beneficial step toward relief. Our firm is here to provide compassionate support, offering comprehensive assistance with Chapter 7 and Chapter 13 bankruptcies, including options that require no upfront payment. You deserve a chance to start fresh.
Your Complete Guide to Bankruptcy
Chapter 7 Bankruptcy
Chapter 7 is a straightforward and effective way to eliminate unsecured debts. Under this type of bankruptcy, you can discharge:
- Medical debt
- Credit card debt
- Unsecured personal loans
- Lawsuit liability
- Wage garnishment
Once you file for Chapter 7, creditors must immediately stop all collection efforts and direct contact with you. In most cases, all debts are discharged within three to four months of filing.
What Debts Cannot Be Discharged Under Chapter 7?
- Student loans
- Certain tax obligations
- Specific fines
- Debts arising from fraud, embezzlement, or larceny
Am I Eligible For Chapter 7?
The vast majority of potential filers are eligible for Chapter 7, but a few situations can make you ineligible. You likely won’t be able to file for Chapter 7 bankruptcy if you:
- You have received a Chapter 7 discharge in the past eight years or a Chapter 13 discharge in the past six years
- You have concealed assets or falsified information in filings to the court
Chapter 7 FAQs
Will I Have To Go To Court In My Chapter 7 Bankruptcy Case?
Usually, within about a month of filing for Chapter 7 bankruptcy, the court will hold a “meeting of creditors.” The filer is required to attend this meeting. After 2020, this meeting was held virtually in many states, so you may never need to enter the courtroom.
Will I Lose My Property If I File For Chapter 7 Bankruptcy?
No. Some property assets are considered exempt and cannot be taken by creditors in a Chapter 7 bankruptcy filing. Generally, debtors can keep their unmortgaged, exempt properties in a Chapter 7 filing.
How Long Will My Chapter 7 Take?
Chapter 7 is one of the fastest ways to resolve debts. Most cases are completed within three to four months of filing for bankruptcy, and unsecured debts are discharged entirely.
Chapter 13: A Solution For Debt Relief And Financial Recovery
Aimed at individuals with a steady income, Chapter 13 bankruptcy assists in reorganizing debts into more affordable payments and reduced monthly expenses. By filing for Chapter 13, you can consolidate your debts, decrease the total amount due, and repay it gradually in a more manageable manner over the next three to five years, providing a route to financial recovery.
Filing for Chapter 13 can help you:
- Avoid or reverse car repossession
- Reorganize tax debt
- Halt foreclosures
- Protect valuable assets
What Makes Chapter 13 Different Than Chapter 7?
Chapter 7 and Chapter 13 bankruptcies have some key differences. In Chapter 7, you will lose most of your nonexempt property, and your debts will be wiped away. In contrast, Chapter 13 allows you to keep your nonexempt property, but you must repay as much of your debts as possible. Once you complete the repayment plan, you will not be responsible for your qualifying debts anymore. Chapter 13 also lets you discharge more types of debts than Chapter 7 does.
What Debts Can Not Discharged By Chapter 13?
Certain debts are unable to be discharged, including:
- Student loans
- Debts repaid outside of the Chapter 13 plan
- Debts having to do with alimony, support, or maintenance
- Debts paid in installments whose final payment is due after the completion of all other payments under the plan
- Debts owed as a result of the debtor being unlawfully intoxicated while operating a motor vehicle and causing the death or injury of another
- New debts incurred during the time of filing for Chapter 13 bankruptcy that were not included in payments under the plan
- The debt owed for criminal fines is included in the debtor's conviction of a crime
FAQ: Chapter 13
Am I Eligible For Chapter 13 Bankruptcy?
You would be considered eligible if you:
- Have unsecured debts that amount to no more than $336,900 or secured debts that amount to no more than $1,010,650
- Have some sort of regular income
- Are not a stock broker or commodity broker
- Reside, own property, or do business in the United States
- Have not filed a bankruptcy case that has been dismissed in the last 180 days
Is It Necessary For Me To Fully Pay Off My Debts Through A Chapter 13 Filing Plan?
No. You won't necessarily have to repay all your debts in a Chapter 13 bankruptcy. While your plan will include payments for certain obligations like taxes and fully secured debts, the amount you pay will be based on your ability to pay. Successfully completing your Chapter 13 plan can lead to the discharge of remaining balances on many other debts.
How Long Will It Take Me To Finish My Chapter 13 Plan?
A Chapter 13 plan typically takes about three years to complete, although it may conclude sooner if debts are settled ahead of schedule. If a debtor has a legitimate reason, they can request the court to extend the plan for up to five years.
What Happens After Filing For Bankruptcy?
Filing for bankruptcy can be a valuable first step toward financial freedom and a fresh start. Within six months of filing, negative credit will be removed from your credit report with all major reporting bureaus, giving you a clean slate to begin anew. If you stay on top of revolving debts and apply for a secured credit card, you could set yourself on the path to homeownership in the near future!
Learn More About Life After Bankruptcy
Debt-Relief Services In Grand Rapids
Creditor Harassment
Are creditors subjecting you to unwarranted distress? The Fair Debt Collection Practices Act (FDCPA) provides protection against creditor harassment, and we can assist by ensuring that your creditors adhere to legal standards. Once a third-party debt collector is made aware of your legal representation, they are required to terminate all forms of communication with you.
Real Estate Closing
Are you buying or selling a property? Our team of attorneys guarantees seamless negotiation from inception to conclusion. We are fully prepared to offer comprehensive legal support to buyers and sellers throughout the closing process. With the assistance of DebtErasers attorneys, you can confidently manage your real estate matters with the utmost propriety.
Loan Modification Negotiation
Are you encumbered by significant loans and feeling as though escape is impossible? A loan modification may present an option of which you are currently unaware. The objectives of a loan modification are twofold: (1) to reduce your monthly payments to a sustainable level and (2) to defer your mortgage arrears to safeguard your home from foreclosure. To enhance your likelihood of securing a loan modification, we recommend enlisting the expertise of our adept and experienced attorneys at DebtErasers.
Meet Your Grand Rapids Law Team
Eugene Feldman
Managing Partner
Eugene is committed to helping individuals in financial distress. He has helped thousands resolve their debt issues. Eugene works with clients from their initial consultation through discharge.
Roger Leshinsky
Managing Partner
Roger has dedicated the past ten years to providing legal expertise and financial relief to families throughout the Midwest. Roger has helped over 10,000 people discharge millions of dollars of debt and get back on track with their financial goals.
Where Are We Located In Grand Rapids?
DebtErasers is a bankruptcy law firm in downtown Grand Rapids embedded in the local community. Schedule your appointment with us today.
250 Monroe Ave NW, Suite 400
Grand Rapids, MI 49503
Get Directions
Contact us: (248) 876-9439
Give us a call today, and let's work together to address your concerns and find a solution that feels right for you. No matter how big or small your debt struggles may be, we are committed to supporting you every step of the way. You deserve a brighter, more manageable financial future!