Attorney at Law Erik Stein is proud to offer quality bankruptcy services at affordable prices to clients throughout Monroe County, MI, Toledo, OH and the surrounding areas. Mr. Stein personally, patiently and professionally handles each bankruptcy proceeding, allowing clients to get a fresh start to their finances. The right to file for bankruptcy is provided in federal law, and all bankruptcy cases are handled in federal court by Mr. Stein.
What can bankruptcy do for me?
Bankruptcy may make it possible for you to:
- Eliminate the legal obligation to pay most or all of your debts. This is called a “discharge” of debts. It is designed to give you a fresh start.
- Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments. ( Bankruptcy does not, however, automatically eliminate mortgages and other liens on your property without payment. )
- Prevent repossession of a car or other property, or force the creditor to return property even after it has been repossessed.
- Stop wage garnishment, debt collection harassment, and similar creditor actions to collect a debt.
- Restore or prevent termination of utility service.
- Allow you to challenge the claims of creditors, who have committed fraud or who are otherwise trying to collect more than you really owe.
What bankruptcy cannot do:
Bankruptcy cannot, however, cure every financial problem. Nor is it the right step for every individual. In bankruptcy, it is usually not possible to:
- Eliminate certain rights of "secured" creditors. A creditor is "secured" if it has taken a mortgage or other lien on property as collateral for a loan. Common examples are car loans and home mortgages. You can force creditors to take payments over time in the bankruptcy process and bankruptcy can eliminate your obligation to pay any additional money on the debt if you decide to give back the property. But you generally cannot keep secured property unless you continue to pay the debt.
- Discharge certain types of debt singled out by the bankruptcy law for special treatment, such as child support, alimony, most student loans, court restitution orders, criminal fines and most taxes.
- Protect cosigners on your debts. When a relative or friend has cosigned a loan, and the consumer discharges the loan in bankruptcy, the cosigner may still have to repay all or part of the loan.
- Discharge debts that arise after bankruptcy has been filed.
What different types of bankruptcy cases should I consider?
- Chapter 7 is known as “straight” bankruptcy or “liquidation.” It requires an individual to give up property which is not “exempt” under the law, so the property can be sold to pay off creditors. Generally, those who filed chapter 7 keep all of their property except property which is very valuable or which is subject to a lien which they cannot avoid or afford to pay.
- Chapter 11, known as “reorganization,” is used by businesses and a few individuals whose debts are very large.
- Chapter 12 is reserved for family farmers and fisherman.
- Chapter 13 is a type of “reorganization” used by individuals to pay all or a portion of their debts over a period of years using their current income.
- Most people filing bankruptcy will want to file under either chapter 7 or chapter 13. Either type of case may be filed individually or by a married couple filing jointly.
What will happen to my home and care if I file for bankruptcy?
In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors in Chapter 13.
However, some of your creditors may have a "security interest" in your home, automobile, or other personaly property. This means that you gave that creditor mortgage on the home or put your property up as collateral for the debt. Bankruptcy does not make these security interests go away. If you don't make your payments on that debt, the creditor may be able to take and sell the home or property during or after the bankruptcy case.
Can I own anything after bankruptcy?
Yes! Many people believe that they cannot own anything for a period of time after filing for bankruptcy. This is not true. You can keep your exempt property and anything you obtain after the bankruptcy has been filed. However, if you receive an inheritance, a property settlement or life insurance benefits within 180 days after filing for bankruptcy, that money or property may have to be paid to your creditors if the property or money is not exempt.
Will bankruptcy affect my credit?
There is no clear answer to this question. Unfortunately, if you are behind on your bills, your credit may already be bad. Bankruptcy will probably not make things any worse.
That fact that you've filed for bankruptcy can appear on your credit record for ten years from the date your case was filed, but because bankruptcy wipes out your old debts, you are likly to be in a better position to pay your current bills and you may be able to get new credit.
If you decide to file bankruptcy, remember that debts discharged in your bankruptcy should be listed on your credit report as having a zero balance, meaning you do not owe anything on the debt. Debts incorrectly reported as having a balance owed will negatively affect your credit score and make it more difficult or costly to get credit. You should check your credit report after your bankruptcy discharge and file a dispute with credit reporting agencies if this information is not correct.
Can I file bankruptcy without an attorney?
Although it may be possible for some people to file a bankruptcy case without an attorney, it is not a step to be taken lightly. The process is difficult and you may lose property or other rights if you do not know the law. It takes patience and careful preparation.
We are a debt relief agency. As such, we specialize in helping people file for relief under the bankruptcy code. We can assist you through the bankruptcy filing process, and immediately stop all creditors from seeking to collect debts from you, until your debts are sorted out accordingly.
Contact Erik Stein today at 734-847-9660 for a consultation on all of your bankruptcy needs, or browse the website for an attorney profile and legal resources.
