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Chapter 13 Bankruptcy

Facts About Chapter 13

When most people throughout Metro Detroit think about bankruptcy, they are either thinking of the kind of bankruptcy a major business might file (Chapter 11) or the kind of bankruptcy in which debt is eliminated and assets are protected for individuals (Chapter 7). But there is another kind of bankruptcy that provides many benefits not available under other chapters of bankruptcy. That other kind of bankruptcy is found in Chapter 13.

What Can You Do When You File A Chapter 13 Bankruptcy?

In a Chapter 13 bankruptcy, the law enables you to accomplish a number of goals, such as:

  • Save your house: If you are behind on your house payments, Chapter 13 allows you time to catch up and stops foreclosure proceedings.
  • Save your car: If you are behind on your car payments, Chapter 13 allows you to catch up on those, too, often helping you prevent repossession.
  • Make a payment plan to your creditors: Depending on your income level, you can pay creditors a certain amount for three to five years. Whatever is left owing to your creditors at the end of your repayment period often gets eliminated just like in a Chapter 7 bankruptcy.
  • Eliminate second and third mortgages: If your house is worth less than what you owe, you may be able to get rid of additional mortgages.
  • “Cram down” your car payments: Instead of paying your normal loan amounts, Chapter 13 may allow you to pay back only what the car is worth.

Would You Like To Learn More About Chapter 13?

Our attorneys invite you to contact our office to schedule a free initial appointment if you would like to learn more about whether or not a Chapter 13 is right for you or not. Please give our lawyers a call at 248-350-8220. If you prefer, you can also contact us by email.

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