Grand Rapids, Michigan, Bankruptcy Lawyer
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If you are having financial troubles, you may be considering consulting a bankruptcy attorney. The process can be complicated, and you need an experienced legal professional on your side who will help you make informed decisions as you navigate your options in bankruptcy.

Grand Rapids based law firm, Mark F. Haslem, PC, can help you. Our firm represents individuals as well as small businesses with filing for bankruptcy in Chapter 7, Chapter 11, and Chapter 13

Types of Bankruptcy

The Bankruptcy Code is divided into chapters. The chapters which usually apply to consumer debtors are chapter 7, known as a Liquidation, and chapter 13, known as an Adjustment of the Debts of an Individual with Regular Income. An important feature applicable to all types of bankruptcy filings is the automatic stay.

The automatic stay means that the mere request for bankruptcy protection automatically "stays" or forces an abrupt halt to repossessions, foreclosures, evictions, garnishments, attachments, utility shutoffs, and debt collection harassment. It offers debtors a breathing spell by giving the debtor and the trustee assigned to the case time to review the situation and develop an appropriate plan. Creditors cannot take any further action against the debtor or the property without permission from the bankruptcy court.

Chapter 7 – “Fresh Start”

In a chapter 7, or liquidation case, the bankruptcy court appoints a trustee to examine the debtor's assets and divide them into exempt and nonexempt property. Exempt property is limited to a certain amount of equity in the debtor's residence, motor vehicle, household goods, life insurance, health aids, specified future earnings such as social security benefits and alimony, and certain other personal property. The trustee may then sell the nonexempt property and distribute the proceeds among the unsecured creditors.

Although a liquidation case can rarely help with secured debt (the secured creditor still has the right to repossess the collateral), the debtor will be discharged from the legal obligation to pay unsecured debts such as credit card debts, medical bills and utility arrearages. However, certain types of unsecured debt are allowed special treatment and cannot be discharged. These include some student loans, alimony, child support, criminal fines, and some taxes.

Chapter 13 – Repayment Plan

In a chapter 13 case, the debtor puts forward a plan, following the rules set forth in the bankruptcy laws, to repay all creditors over a period of time, usually from future income. A chapter 13 case may be advantageous in that the debtor is allowed to get caught up on mortgages or car loans without the threat of foreclosure or repossession and is allowed to keep both exempt and nonexempt property.

The debtor's plan is a simple document outlining to the bankruptcy court how the debtor proposes to pay current expenses while paying off all the old debt balances. The debtor's property is protected from seizure from creditors, including mortgage and other lien holders, as long as the proposed payments are made. The plan generally requires monthly payments to the bankruptcy trustee over period of three to five years. Arrangements can be made to have these payments made automatically through payroll deductions.

Give us a call at (616) 742-6732, or use the email form below, for information on our Flat-Fee Bankruptcy options.

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Not only are we a law firm, we are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.