While none of us ever wants to think about the necessity of filing bankruptcy, sometimes our finances are so damaged by divorce, job loss or illness we have no options available to us. The bankruptcy laws are designed to help consumers recover financially after a setback. Residents of Allegan County, Muskegon County, Newaygo County, Kent County or Iowa County or other Grand Rapids, MI can count on The OWL Resource Group for help with:
Understanding Chapter 7 Bankruptcy
Under the law, Chapter 7 allows consumers who primarily have unsecured debt such as credit card debt to wipe out their debt if their assets and earnings fall below certain levels. This is done through a means test and those who qualify will be able to eliminate much of their debt. This allows consumers a fresh start and allows them to begin rebuilding their financial lives.
When Chapter 13 is a Better Option
Chapter 13 bankruptcy is commonly called “wage earners” bankruptcy. Under this option, your existing debt would be reorganized and your payments would be stretched out over a period of time which could be as much as five years. Any unsecured debt that remains at the time your bankruptcy is discharged would be eliminated. Oftentimes, consumers who have many assets will benefit from Chapter 13. Chapter 13 is ideal if you are slightly behind on your or you need additional time to pay back taxes and child support which cannot be discharged in bankruptcy.
Stopping Wage and Bank Account Garnishments
Under Michigan law, creditors can go to court and request the ability to garnish your wages or bank accounts if your debt to them is overdue. Garnishments for other than child support payments can be as much as 25 percent of your wages after taxes which can seriously hamper your ability to care for your family. Michigan does have a 28 day holding period during which time you can petition the court to stop the garnishment and if they agree, you will get any funds that were not paid to the creditors back. If the court disagrees, we may still be able to stop future garnishments using the bankruptcy laws.
Under Michigan laws, lenders may complete a foreclosure process in as little as 60 days assuming they provide all the proper notifications under the law. Because of the number of issues with loan documents, we may be able to help you stop foreclosure proceedings by demanding the lender provide us with all loan documents. Should the proceeding continue, filing bankruptcy can allow you the time you need to stop the foreclosure and catch up on your payments and save your home.
Repossessions in Michigan
Under Michigan law, if your automobile payments are behind, the lender has the right to repossess their property and if you fail to use the redemption option, you may lose your automobile at a sale by auction. However, if you know you are facing possible repossession, you may be able to file bankruptcy immediately and stop the repossession process. Under Michigan bankruptcy laws, most debtors can keep their vehicles and in some cases, you may need to consider reaffirming your auto debt in order to keep the property. The OWL Resource Group will review your financial situation and help you decide the best way to stop repossession.
Medical Debt Can Cripple You Financially
Those who were without health insurance and suffered a serious illness often face overwhelming medical debt that they simply cannot pay. Unfortunately, when you ignore this debt, you can wind up with a judgment against you that can result in wage or bank account garnishment or the debt may be sold to a credit collection agency who will call you repeatedly in an attempt to collect the debt. When medical debt is ruining you financially, it may be necessary to file bankruptcy to eliminate the debt completely.
Your financial future is critical and when you are facing overwhelming credit issues it can have an impact on your entire life. In some cases, a negative credit rating can impact your job prospects and your ability to rent a home. Residents of Allegan County, Muskegon County, Newaygo County, Kent County or Iowa County who are facing problems with debt can count on The OWL Resource Group for help. Call us today at (616) 633-1371.