Individuals and businesses finding themselves over whelmed in debt have the option of filing a discharge of debts to gain a fresh start. Using various filing chapters, it’s a long and complicated process that is best understood by a bankruptcy attorney Clinton Township MI with extensive knowledge to offer. Only a qualified lawyer has the ability to help you file the chapter that’s right for your circumstances.
This is a federal process therefore the petitioner is responsible for filing in a federal court within their correct jurisdiction. However, unless the debtor pays the filing fees or request a fee extension, the case will be dismissed. After a dismissal the petitioner has to wait another 180 days before the court will allow another petition.
A majority of the filers fall under either chapter 7 or chapter 13. Under chapter 7, the debtor is unable to repay the creditors under a repayment plan. The debts are completely discharged or liquidated. Chapter 13 is for individual trying to save real property such as a primary home. While the case is in process, the mortgage company is prohibited from foreclosing on the house. Under the guidance of a bankruptcy attorney in Clinton Township MI, the home owner is able to include the past due mortgage amount in the petition.
As long as the case is active, all listed creditors are issued a stay by the courts. During this period, creditors are not allowed pursue any collection efforts on outstanding debts. At the same time, debtors are not allowed to acquire new debt except under certain circumstances. A bankruptcy attorney in Clinton Township MI can offer advice on allowable debt.
A person or business that’s considered a separate entity will file under chapter 11, the reorganization chapter. Under jurisdiction of the court, the company becomes known as the debtor of possession. This means although the debtor has control of the business, the creditor has a lien or security interest in it. Similar to chapter 13 filing for individuals, this is a form of debt consolidation for businesses.
Rarely used, chapter 12 applies to family fishermen and farmers. In order to qualify, the person must receive at least 50% of their income from one of those fields. Under this chapter the debts are not discharged. Since this chapter allows a debt amount higher than the allowable amount in chapter 13, the debts are reorganized to allow the debtor an opportunity to repay creditors.
While it is a process to help individuals gain control of their debts, creditors are allowed to object to the repayment plan. However in most cases, as long as a majority of the creditors are in agreement, the judge will proceed with the current repayment plan. At this point your bankruptcy attorney in Clinton Township MI has the authority to meet with the creditors in your place.
Upon completion of the case, all filing chapters except those filing under chapter 7 must stay current with the repayment plan. If at any time the debtor finds it difficult to maintain payments, a bankruptcy attorney Clinton Township MI that specializes in this issue can ask the presiding court to reconsider the repayment plan for other options. Seeking to prevent abuse of the system, a person can only file every 7 to 10 years.
Check out www.bartnow.com for details about the benefits you get when you consult a bankruptcy attorney Clinton Township MI area, now. You can also get more information about an experienced lawyer at http://www.bartnow.com today.
Author: Celia HallThis author has published 202 articles so far.