Michigan Bankruptcy Lawyers Serving Jonesville and Jackson County
The financial and mental pressure of overwhelming debts can make you feel like you have no options. However, bankruptcy offers a chance to reduce or eliminate your debts and get a new financial start. Before you file for bankruptcy, though, it’s crucial to speak to an attorney and fully evaluate your options.
The Michigan bankruptcy attorneys at Marrs & Terry, PLLC, have over two decades of experience helping people like you find a more stable financial footing. Our lawyers proudly serve the residents of Jonesville and Jackson County, providing personalized bankruptcy services with compassion and dedication. We can help you understand your options, including filing for Chapter 7 or Chapter 13 bankruptcy, and find the best way forward. Call us today at 734-663-0555 or complete our contact form for a free consultation.
Pros and Cons of Filing for Bankruptcy in Michigan
Before you file for bankruptcy in Michigan, it’s vital to fully understand the potential trade-offs so you know you’re making the right decision. Those trade-offs include:
Pros
- An end to creditor harassment – When you file for bankruptcy, the courts issue an automatic stay that blocks your creditors from taking further action against you.
- Eliminate or reduce your debts – Filing for bankruptcy provides a structured process to reduce or eliminate overwhelming debts. If you meet the requirements to file for bankruptcy and correctly follow the necessary steps, the courts will discharge many or all your outstanding debts.
- Keep essential assets – Overwhelming debts can lead your creditors to seize your home, car, or other crucial assets. In many cases, filing for bankruptcy can help you keep these assets.
- A fresh financial start – While bankruptcy comes with certain drawbacks, many people regain their financial footing once the process is complete, as they no longer have burdensome debts weighing them down.
Cons
- Negative impact on your credit score – Filing for bankruptcy will hurt your credit score for several years, making it harder to get a loan or finance large purchases.
- Some debts don’t qualify for bankruptcy – You can’t discharge many types of student loans, unpaid alimony or child support, and some other debts through bankruptcy. If you are struggling to pay these debts, you may need to find another way to address your financial situation.
- You may have to sell some assets – Depending on the type of bankruptcy you file, your income, and other factors, you may have to sell a significant portion of your assets as part of the legal process. You might see a drop in your standard of living when you file for bankruptcy, at least in the short term.
- Complex legal processes – There are complicated rules and steps to follow when you file for bankruptcy. A misstep at any point could derail your case and put you back at square one with fewer options to deal with your overwhelming debts. It’s critical to work with a capable attorney to avoid any mistakes.
Bankruptcy Serves We Provide
At Marrs & Terry, PLLC, we focus on personal bankruptcy cases rather than cases involving businesses. There are two main methods individuals or families can use to file for bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 Bankruptcies
When people talk about personal bankruptcies, they are likely discussing Chapter 7 cases. A Chapter 7 bankruptcy is a “liquidation” bankruptcy. In this type of bankruptcy, a court-appointed bankruptcy trustee will sell most of your assets to pay back your creditors. You usually can keep your family home, car, and some personal property, as these assets may be exempt from bankruptcy proceedings (with some restrictions). Once the trustee has sold your non-exempt assets and you complete the other steps in the process, the courts will discharge your remaining eligible debts, which means you no longer have to repay them.
To qualify for Chapter 7 bankruptcy, you must pass a “means test” that includes looking at your income and checking it against the median income for Michigan families. If your income exceeds the state median, you may have to file for Chapter 13 bankruptcy instead or find another way to pay back your creditors.
A Chapter 7 bankruptcy case typically takes about three to six months to complete, though you don’t want to rush through the proceedings. An experienced attorney can handle most of the legal work for you, speeding up the process and protecting you from potentially costly mistakes.
Chapter 13 Bankruptcies
In contrast to a liquidation bankruptcy, a Chapter 13 case is a “reorganization” bankruptcy. That means that instead of the courts appointing a trustee to sell your assets, you get to keep most of them once you work out a payment plan with your creditors. If your creditors agree to your proposed plan and the courts approve it, you’ll make payments over three or five years, giving you more time to repay your outstanding debts and stabilize your finances. Once you make all your payments, the courts will discharge your remaining eligible debts.
While a Chapter 13 bankruptcy lets you keep more of your assets, there are stricter requirements you must meet to qualify. Your payment plan is based on your monthly income, essential living expenses, disposable income, and how much you owe. One important thing to know is that if you miss any payments, the courts may dismiss your case, putting you back at square one.
The lengthy payment plan means Chapter 13 bankruptcy cases take longer, but many people prefer Chapter 13 because they keep more of their assets. Talk to a lawyer to make sure you understand all the rules before starting your case.
How Our Bankruptcy Attorneys Serving Jonesville and Jackson County Can Help You
Bankruptcy is a complex process. Our team can explain the rules and requirements for your situation so you know what you’re in for. We can also handle the legal work for you, from filing the initial paperwork and documenting your finances to protecting your rights during meetings with creditors and providing skilled representation in court.
Why Choose Us for Your Michigan Bankruptcy Case?
If you’re considering bankruptcy, you need and deserve a team that truly cares about your situation and has the skills to guide you through the legal process. We have over 20 years of experience with these cases and know all the ins and outs of bankruptcy law. Moreover, we treat our clients like real people, not just case files. We’ll learn about your particular situation and tailor our legal strategy to fit your needs.
Contact a Michigan Bankruptcy Lawyer Now
The sooner you talk to a bankruptcy attorney about your financial situation, the faster you can regain your financial stability and peace of mind. Call Marrs & Terry, PLLC, today or reach out online.
Directions to Our Jackson County Office
Our firm has eight locations throughout Michigan, including one in Jackson at 209 E. Washington, Suite 258. If you want to visit us in person, here’s how to find our office:
From the North:
- Take US-127 South toward Jackson
- Take exit 42 for Michigan Ave and turn right
- Turn left onto E. Washington Ave
- The office will be on the left
From the South:
- Take US-127 North toward Jackson
- Take exit 42 for Michigan Ave and turn left
- Turn left onto E. Washington Ave
- The office will be on the left
From the East:
- Take I-94 West toward Jackson
- Take exit 139 for Cooper St. and turn left
- Turn right onto E. Washington Ave
- The office will be on the right
From the West:
- Take I-94 East toward Jackson
- Take exit 138 for Michigan Ave and turn right
- Turn left onto E. Washington Ave
- The office will be on the left