If you're drowning in debt with no relief in sight, we can help you find the best way out of your situation. Despite the negative perception sometimes associated with bankruptcy, it may be the best option for you to get out from under crushing debt.
What exactly is bankruptcy?
Bankruptcy is the legal process that allows individuals or entities freedom from some or all of their debts. Our firm handles three types of bankruptcy cases:
- Chapter 7 bankruptcy. This is designed to allow individuals permanent relief from all or most of their debts. The majority of individuals who file a Chapter 7 Bankruptcy will receive complete relief from credit card debts, medical bills, and other unsecured loans or debts. However, certain debts, such as child support, alimony payments, and some taxes, cannot be discharged.
- Chapter 11 bankruptcy. This allows a struggling business to get its affairs in order and create a plan to pay its creditors a portion of what is owed to them. An individual may also file a Chapter 11 Bankruptcy (if they are not eligible for Chapter 13). A Chapter 11 Bankruptcy is usually much more expensive and time-consuming than Chapter 13 Bankruptcy.
- Chapter 13 bankruptcy. This is designed to allow individuals to create a plan to pay their creditors a portion of what is owed to them, usually on a monthly basis. The balance that remains unpaid will then be discharged when the plan is completed. Chapter 13 also allows you to save your home from a mortgage foreclosure, in certain circumstances. Most plans last from 3 to 5 years. The amount that you will need to pay is based upon your income and how much debt you owe. Your Chapter 13 monthly plan payment is usually less than all of the monthly payments you owe to creditors.
In each of these cases, you need a skilled and experienced bankruptcy lawyer to help you navigate the process and guide you through the right proceedings.
Bernardi, Ronayne & Glusac, P.C., is a debt relief agency located in Plymouth, Michigan. Among other services, we help people file for bankruptcy relief under the U.S. Bankruptcy Code.