Bankruptcy Law

Consumer Bankruptcy – Chapter 7

There are two basic types of consumer bankruptcy proceedings – Chapter 7 and Chapter 13. A filing under Chapter 7 is called liquidation. This chapter allows the debtor to free themselves (to be discharged) of their financial obligations. It is the most common type of bankruptcy proceeding. If your income barely allows you to pay your necessities of life such as your mortgage or rent, food, utilities, car payment, car insurance, health expenses, etc. you might be able to free yourself of some or all of your debt. Chapter 7 also allows a person to keep their property such as houses and cars so long as those assets do not have more equity (Equity = Fair Market Value of the Property or Sales Price minus mortgage or loan balance) then the bankruptcy law allows. For example, the bankruptcy law allows a person to keep $17,350.00 of equity in their home. If the equity is above $17,350.00 the United States Bankruptcy trustee may force the debtor to pay any equity above the $17,350.00.

Bankruptcy law allows you to reduce your stress in trying to pay bills and give you a fresh start in life. For those people who live in Metropolitan Detroit Michigan, please call Robert D. Paulbeck at (734) 692-3225 to see if you qualify for chapter 7 bankruptcy. If you do qualify please fill out the Bankruptcy Questionnaire. You can download it here as either Word or PDF format.

Consumer Bankruptcy – Chapter 13

A bankruptcy proceeding under Chapter 13 involves the rehabilitation of the debtor to allow him or her to use future earnings to pay off creditors. Usually there are two types of people who file Chapter 13. The first type is a person who is behind in paying their mortgage or car loan(s) and wants to keep their home and car(s). Chapter 13 bankruptcy stops the mortgage company or bank(s) from foreclosing the person’s home or repossessing their car(s). The second type is a person who has to file Chapter 13 bankruptcy is a person who has a lot of income left over after he or she pays all of his or he necessary expenses (necessary expenses usually are mortgage or rent, food, utilities, car payment, car insurance, health expenses, etc.)