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Phone: 248-646-4600
Email: ron@siegelpc.com
Location
30150 Telegraph Rd, #444 Bingham Farms, Michigan 48025
Hours
Mon - Fri: 8:30am - 5:30pm
Weekends: By appointment
Serving Metro Detroit And Southeast Michigan
The Surprising Benefits of Filing for Chapter 13 Bankruptcy in Michigan
Bankruptcy is a complicated and scary process to go through. However, when it comes to Chapter 13 bankruptcy, it can bring many advantages, especially in a state like Michigan. Michigan residents have been struggling with debt for years, with high unemployment rates and stagnant wages. But with Chapter 13 bankruptcy, you can gain control of your debt and have a fresh start for your financial life. In this blog post, we’ll go over the benefits of filing for Chapter 13 bankruptcy in Michigan.
1. Protection from Foreclosure and Repossession
One of the most significant benefits of filing for Chapter 13 bankruptcy is that it offers protection from foreclosure and repossession. If you are behind on your mortgage or car loan payments, you can apply for Chapter 13 bankruptcy and come up with a payment plan that fits your budget. In Michigan, there have been many cases of homeowners losing their homes in foreclosure during the recession, but with Chapter 13 bankruptcy, you can stop the foreclosure process and keep your home.
2. Reduced Debt Payments
Another benefit of Chapter 13 bankruptcy is that it can lower your debt payments. In Chapter 13, your debt is consolidated into one payment plan that you pay over three to five years. The payment plan is based on your income and budget, which means it is manageable and affordable. If you have high-interest rates and huge minimum payments on your credit cards, Chapter 13 bankruptcy can offer an opportunity to reduce and even eliminate your debt.
3. No More Creditor Harassment
If you are struggling with debt, you know how stressful and overwhelming it can be to deal with creditor calls and letters. But with Chapter 13 bankruptcy, you have the right to a debt discharge, which means that your creditors will stop contacting you. There are also laws that protect you from creditor harassment, and if you’re still receiving calls, you can seek legal help to enforce these laws.
4. Improve Your Credit Score
When you file for bankruptcy, your credit score will be impacted, and it will take some time to rebuild it. However, with Chapter 13 bankruptcy, you can show that you are making an effort to repay your debt and that you are taking responsibility for your financial situation. Your credit score will improve as you make payments on your debt over the next few years.
5. Protection for Your Co-signers
If someone has co-signed a loan with you, they are also responsible for repaying that loan. When you file for bankruptcy, any co-signers will also be protected under the automatic stay, which will stop collection efforts against them. This means that they won't have to worry about paying your debt.
Filing for Chapter 13 bankruptcy in Michigan can bring many advantages, including protection from foreclosure and repossession, reduced debt payments, no more creditor harassment, a chance to improve your credit score, and protection for your co-signers. The decision to file for bankruptcy is a big one, but with the help of an experienced attorney, you can gain control of your debt and start fresh. Contact us today to discuss your options and how Chapter 13 bankruptcy can help you.
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30150 Telegraph Rd, #444
Bingham Farms, MI 48025
Practice Areas
Hours
Mon - Fri: 8:30am - 5:30pm
Weekends: By Appointment
We are a debt relief agency. We are attorneys who help people file for bankruptcy relief under the bankruptcy code.
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.