Detroit Bankruptcy Lawyer

Walter Metzen Board Certified Consumer Bankruptcy Specialist
American Board of Bankruptcy Certification

Date and Place of Birth

October 21, 1963, Detroit MI.

Professional background

For over 10 years, Walter A. Metzen has represented thousands of consumers needing a fresh financial start. The Attorneys at Michigan Bankruptcy Lawyers PLLC pride ourselves in giving personal attention to our clients. Our law firm primarily represents individuals and small businesses, not large corporations. The firm believes that bankruptcy is an honest solution and offers a free initial consultation. Walter received his law degree in 1991 from the University of Detroit and his undergraduate B.S. degree in 1987 from Michigan State University. He is licensed to practice in the State of Michigan and and before the U.S. District Courts for the Eastern and Western Districts of Michigan, as well as the U.S. Bankruptcy Court for the Eastern and Western District of Michigan. Attorney Metzen is a member of the Michigan Bar, the American Bar Association, the Consumer Bankruptcy Association, the National Association of Consumer Bankruptcy Attorneys, Inc., the American Bankruptcy Institute, and the Debtor's Bar Association of Detroit Michigan.

Firm Philosophy

Attorney Walter Metzen, the principal bankruptcy attorney here at Michigan Bankruptcy Lawyers PLLC, has over 10 years experience in consumer bankruptcy law, and has helped thousands of Metro Detroit and Southeast Michigan residents get a fresh financial start. All associate attorneys have also successfully assisted thousands of clients with their bankruptcy filings. We maintain close communication with our clients by being readily available in person (walk-in times everyday), by telephone by fax and by email. We are not the largest law firm in Detroit. We are not the largest bankruptcy law firm in Michigan, nor do we want to be. What we do have is a dedicated, experienced staff that will provide you with attentive, personalized service. We do not believe that bigger is necessarily better. The attorneys at Michigan Bankruptcy Lawyers PLLC strive to know the law and know the Bankruptcy Court system. We study the Bankruptcy Code, the Bankruptcy rules and the Local Bankruptcy Rules for the Eastern District of Michigan. We know the Bankruptcy Judges the Chapter 7 Trustee's and the Chapter 13 Trustee's. We know the other local bankruptcy attorneys and we can guide you through any bankruptcy proceeding. All attorneys at Michigan Bankruptcy Lawyers PLLC stay current in the latest developments in all our areas of practice and frequently attend seminars, bankruptcy conferences and workshops to maintain the highest level of bankruptcy law counseling as possible.

At Michigan Bankruptcy Lawyers PLLC, the attorney you speak with is the attorney who will go to Bankruptcy Court with you. We will not send an attorney fresh out of law school to represent you. At Detroit Michigan Bankruptcy Lawyers .com, you will not be treated as one more case in a huge bankruptcy factory...but you will be given personal attention and good old fashioned legal services...where you can talk to your attorney and paralegal when you need to. We have a reputation in the Metro Detroit area for providing our clients with superior service at the lowest possible cost, keeping in mind the client's needs for honest, and experienced legal knowledge and service, while maintaining the lowest fees possible. At Michigan Bankruptcy Lawyers PLLC, our philosophy is to provide the client with honest advice, whether bankruptcy is appropriate for the client or not, and to stand up for our client's best interests. You can expect us to communicate with you every step of the way, and explain to you all of our recommendations. Our goal is to provide each client with quality legal services and excellent communication at a reasonable fee.

We offer free consultations, over the phone, the internet, or in person. Michigan Bankruptcy Lawyers PLLC Office is conveniently located just one-block from the US Bankruptcy Court in Detroit Michigan to better serve you. Because of our close proximity to the Bankruptcy Court, we can file your case the same day if needed to immediately stop foreclosure, car repossession, utility shut off (gas, phone or electric) and stop those creditor calls!

We at Michigan Bankruptcy Lawyers PLLC are focused on serving our clients. Our professional calling is to our clients and only our clients, on a full-time basis, to the best of our abilities. We at Michigan Bankruptcy Lawyers PLLC strive to render bankruptcy legal services which are high quality, ethical, and honest, and which bring positive results. We fight for our client's rights in court. We explain the law to our clients as it affects your case. We promptly return our phone calls and answer your questions and keep you informed of the status of your case. We are fair to our clients. We fully disclose the fee basis on which your case will be taken at the beginning. We strive to keep costs as low as possible. All attorneys at Michigan Bankruptcy Lawyers PLLC are highly trained in the use of computer-based office systems and legal research resources. We use state-of-the-art technology including, Bestcase Bankruptcy software which enables us to electronically file your case immediately and can constantly monitor and review your case via the United States Bankruptcy Court's Public Access to Court Electronic Records (PACER) system.

A Word from Walter

"I am the last person that most of clients want to see. Most of them have done absolutely everything in their power to avoid bankruptcy; from borrowing from other credit cards, borrowing against their house, borrowing against their pension, borrowing from friends and relatives and even consumer credit counseling. The purpose of this site is to counsel people in this situation and offer them an alternative to 'borrowing'. The reason for this is that continuous 'borrowing' adds to continuous 'borrowing', which almost always leads to a worse financial problem. Clients will do almost anything to avoid seeing me. But, all that usually does is put them into a worse position then had they come to see me in the first place. Further, these people that try so hard to avoid seeing me are the same people that tell me how relieved they are that I can resolve their financial situation." "We represent the working class - so you won't find us wasting your time! We promise to be fast, efficient, and effective." "Since we represent people who work, we understand your situation. Therefore, if you need time to pay your fees, we will take payments - for up to three months - you set the amount."

      Educational Achievements:

• High School Diploma, Milford High School, Milford MI., June 1981
• Bachelor of Science, Criminalistics and Forensic Science, Michigan State University, June 1987
• Juris Doctor, University of Detroit School of Law, 3.7 GPA, Class Rank: 1st in Class, December1991 

        Educational Awards:

• Michigan Higher Education Award for Academic Excellence.
• Michigan Jurisprudence Award (Book awards-Torts, Civil Procedure, Insurance Law).
• Dean's List all terms of attendance in Law School.
• Dean's Scholarship for Academic Excellence, University of Detroit School of Law.

       Professional Memberships and Associations:

• State of Michigan Bar Association.
• US District Court for the Eastern District of Michigan Federal Bar
• Consumer Bankruptcy Association
• National Association of Consumer Bankruptcy Attorneys
• American Bankruptcy Institute

        Continuing Legal Education:

• ABI Fourth Annual Central States Bankruptcy Workshop, Traverse City MI., June 1997-12 Hrs.
• Bankruptcy Practice 1998 Seminar, PESI Inc., Novi MI, May 1998-7 Hrs.
• ABI 5th Annual Central States Bankruptcy Workshop, Traverse City, MI- June 1998-12 Hrs.
• New Local Bankruptcy Rules Seminar, Oakland County Bar Association, Birmingham MI, September, 1998-3.5 Hrs.
• Bankruptcy Practice 1999 Seminar, PESI Inc., Novi MI, April 1999-7 Hrs.
• ABI 6th Annual Central States Bankruptcy Workshop, Traverse City, MI- June 1999-12 Hrs.
• Chapter 13 Seminar, Consumer Bankruptcy Association and Office of the Chapter 13 Standing Trustee-Detroit, Troy MI- September 1999-7 Hrs.
• ABI Central States Bankruptcy Workshop, Traverse City, MI-June 2000-8.75 Hrs.
• National Business Institute Advanced Consumer Bankruptcy Issues in Michigan, Southfield, MI.-October, 2000-7 Hrs.
• National Business Institute Advanced Consumer Bankruptcy Issues in Michigan, Southfield, MI.-October, 2001-7 Hrs.
• Local Bankruptcy Seminar, Consumer Bankruptcy Association 2002 Seminar, Troy MI- March 2002-5.7 Hrs.
• NACBA-National Association of Consumer Bankruptcy Attorneys Tenth Annual Convention/Seminar, April 26-28, 2002, Las Vegas NV.-11 CLE Hrs.
• ABI 2002 Central States Bankruptcy Workshop, Traverse City, MI-June 2002-8.75 Hrs
• Detroit Metropolitan Bar Association-CBA, Michigan Public Act 123, November 13,2002-2 Hrs.
• LAW 314 SEC. 75-Winter Semester January 2003 to May 2003: Course Title DEBTOR-CREDITOR (Creditors Rights and Debtors Remedies, Instructor Timothy Fusco, 3 Semester Credit Hours, University of Detroit-Mercy School of Law (evening section). 45 Hours. total.
• FAMILY LAW ISSUES IN CONSUMER BANKRUPTCY SEMINAR: April 23, 2003. 1.5 hours.
• ABI 2003 Central States 10th Bankruptcy Workshop, Traverse City, MI-June 2003-8.25 CLE Hrs
• Oakland Mediation Centers CONFLICT MANAGEMENT WORKSHOP, Jan. Feb. 2004. 8 Hrs. (Non CLE)
• Bankruptcy Mortgage Financing/Refinance Out of Chapter 13-Vision Mortgage Workshop, 4-30-04m 2 Hrs
• ABI 2004 Central States 10th Bankruptcy Workshop, Traverse City, MI-June 2004-8.25 CLE Hrs
• Consumer Bar Association: Ultimate Introductory Bankruptcy Seminar, June 11, 2004-4.25 Hrs
• Raising The Bar On USBC Professionalism. Oakland Mediation Center, July 30th, 2004-4 Hrs
• New Bankruptcy Code Seminar, Cobo Center Detroit, MI June 3, 2005, 1:00pm to 4:00pm -4 Hrs
• ABI American Bankruptcy Institute 2005 Central States 12th Annual Bankruptcy Workshop, Traverse City, MI-June 16-19th 2004-8.5 CLE Credit Hrs.
• Understanding the Radical Bankruptcy Code Changes: Consumer Bankruptcy Under the New Code: Commercial Law League of America and its Bankruptcy Section Fund (Telephonically recorded), June 23, 2005-2 Hrs
• Understanding the New Bankruptcy Reform Act: What Every Lawyer Needs to Know-ICLE (Institute for Continuing Legal Education), MSU Management Education Center, Troy MI, July 26th, 2005-5.25 Hrs
• Best Case Bankruptcy Reform Update-Chicago Marriott, Chicago IL, July 28th, 2005, 1 Hr
• National Association of Consumer Bankruptcy Attorneys (NACBA), Fighting Back: Helping Debtors Survive the New Bankruptcy Law, A Bankruptcy Practice Workshop, July 29th 30th, 2005, Chicago Marriott Hotel Downtown Magnificent Mile, Chicago IL.-13.5 Hrs
• New Code Consumer Bankruptcy Association Meeting: Are you a Debt Relief Agency? Chief Judge Steven W. Rhodes, August 25th, 2005, 215 S. Washington, Royal Oak MI 48067. 1.5 Hrs
• New Code Consumer Bankruptcy Association Meeting: NACTT National Association of Chapter Thirteen Trustees Video Presentation: BAPCPA, Bankruptcy Abuse Prevention and Consumer Protection Act, September 20th, 2005, 215 S. Washington, Royal Oak MI 48067. 1.5 Hrs
• New Code Consumer Bankruptcy Association Meeting: Group Presentations: Domestic Support Obligations Group, Automatic Stay Group, Chapter 13 Issues/Plan Modifications/Model Plan Group: Adequate Protection Group, Local Rules/Case Law Monitoring: BAPCPA, Bankruptcy Abuse Prevention and Consumer Protection Act, September 27th, 2005, 215 S. Washington, Royal Oak MI 48067. 2.5 Hrs
• New Code Consumer Bankruptcy Association Meeting: Group Presentations: Valuations and Exemptions Group, Credit Counseling, Documentation and Reporting Group, Pre-Petition Credit Counseling Group: Discharge and Dismissal Group, Reaffirmation Issues Group: Co-Presenter Means Test Group: BAPCPA, Bankruptcy Abuse Prevention and Consumer Protection Act, October 11th, 2005, 215 S. Washington, Royal Oak MI 48067. 3.0 Hrs

• Bankruptcy Basics
• Should I file Bankruptcy
• A Story for those Feeling Guilty about Bankruptcy
• Bankruptcy is a Right and a Privilege provided to you
• by the United States Constitution
• Alternatives to Bankruptcy
• How Bankruptcy Affects Your Credit

Bankruptcy Basics

Certain basic concepts apply under both Chapter 7 and Chapter 13. The case is commenced by filing a petition with the bankruptcy court. The petition must list all of your assets, liabilities and other information required under the code. You cannot pick and choose which creditors to include on the petition, but that doesn't mean you cannot keep your home or vehicle, as will be explained later. All creditors must be listed. You may file as an individual or as husband and wife. Married couples do not have to file together if substantially all debts are solely in one spouse's name.

Your creditors can force you into bankruptcy. This is called an involuntary proceeding. For the most part, involuntary proceedings are confined to business cases. Almost all consumer cases are filed voluntarily. Approximately 75% of the cases I file a Chapter 7 "wipe-out debt" cases, the other 25% are Chapter 13 "reorganization or repayment plans" in which the debtor (or husband and wife) make payments to a Chapter 13 Trustee for a 3 to 5 year time period. Most Chapter 13 cases I file are for debtors who are trying to prevent a foreclosure of their home or repossession of their vehicle. Some Chapter 13 cases are filed because the debtor's are not eligible to file a Chapter 7 either because they have filed a prior Chapter 7 in the previous six year or they have too many assets or make too much money or because they could pay their creditors a good percentage of what they owe with a Chapter 13 plan without too much of a burden on their way of life. Some clients will file a Chapter 13 repayment plan even if they qualify for a Chapter 7 just because they want to pay their creditors. Both Chapter 7 and Chapter 13 will stop creditor action such as a foreclosure or sheriff's sale, utility shut-off, vehicle repossession or wage garnishment. See below or link to my detailed frequently asked questions page for answers to more of your questions. Feel free to e-mail me, come in to see me for a free consultation or call me locally at (313) 962-4656 or toll free at 888-Debt Gone or 888-4Walter.

The filing of the petition invokes what is known as the automatic stay. This means that your creditors are immediately prevented from doing anything further to compel collection of a debt. The harassing calls, garnishments, law suits, foreclosures, repossessions or shutting off of utility services are all stopped. The "stay" is designed to give you time to sort out your affairs free from the harassment of creditors.

In the petition, your debts are classified as either priority, secured or unsecured. Each is treated differently depending on which chapter is filed. Priority debts in consumer cases are usually limited to government tax liabilities and support obligations. Priority creditors have certain rights to payment over other creditors.

Secured debts are backed by property known as collateral, and typically consist of auto loans and mortgages. The creditor has a lien, or right to recover the property upon default. In most cases, liens attach to property by virtue of a written security agreement signed when the pledged property is purchased, or upon obtaining a loan.

Unsecured debts are almost everything else. They include credit cards, back utilities, medical bills, store charges and unsecured loans. Unsecured creditors do not have a lien or interest in your property. If you purchased certain property with a store charge or credit card, the seller cannot repossess that property on your default without a security agreement.

Should I File Bankruptcy?

The process of deciding whether to file a bankruptcy proceeding often is very difficult indeed. Nobody wants to file bankruptcy, whether it be under Chapter 7 or Chapter 13 of the Bankruptcy Code. Bankruptcy is meant for the honest debtor, someone who has explored all alternatives. (see below) A bankruptcy may have adverse credit effects and there can be other undesirable ramifications. Well then, why should someone take this important step? The answer to that question, in my opinion, is that you should file only after considering the various possible alternatives. If none of these alternatives is feasible or practical for you, then filing a bankruptcy petition may be the most responsible step to take.

A Story for those Feeling Guilty about Bankruptcy

Did you know that Thomas Jefferson did not hesitate to utilize the United States Bankruptcy Laws. Thomas Jefferson. The third president of the United States. A statesman, diplomat, architect, author, inventor and farmer. Widely acknowledged as a genius and the smartest of all U.S. presidents. A man who gave vision to this country as one of its founding forefathers and leader of this country.

Why do I bring up Mr. Jefferson? Because he was almost constantly in debt. A whole lot of debt. Mr. Jefferson filed several bankruptcies in his lifetime; and, his debt was huge in comparison to most individuals' bankruptcies today.

The point is, bankruptcy is nothing to be ashamed of. If a person with Mr. Jefferson's credentials, aptitude and intelligence can get himself into situations, repeatedly, that require bankruptcy to solve, then it is certainly no negative reflection on you if you need to. Many famous and important people have exercised their right to file Bankruptcy including Willie Nelson, Jerry Lewis and former Treasury Secretary John Connally.

Most people who file bankruptcy would much rather repay their debt if they could, and they must deal with their ingrained fear of bankruptcy, because mis-informed societal attitudes have always looked upon bankruptcy debtors as cheats, criminals and irresponsible. Many clients insist upon telling me of their exemplary past credit history, even though it has little to do with their present predicament, and offers me no information necessary to help them now. I suspect the reason arises from a need to explain that their situation is different, because they are not cheats and criminals like others who may file.

The irony is that they really are just like most others who file. It is simply a myth to believe that most people who file bankruptcy could pay their debts if they chose. The fact is most bankruptcy debtors have sold valuable assets to repay debt, borrowed from friends and relatives, and have simply no other place to turn before looking to the bankruptcy code for debt relief.

The most common reasons for filing bankruptcy include loss of employment, insufficient medical insurance, divorce, or a failed business venture. Most recently, bankruptcy filings have been surging as a result of the unprecedented availability of high interest credit cards, which inevitably lead to a greater number of defaults when combined with any of the above problems.

The inability to keep current with bills as they become due causes stress that affects marriages, jobs and almost every aspect of life. Anyone who has suffered from a barrage of hostile telephone calls from bill collectors knows that something has to give. The bankruptcy laws have been enacted to provide a safety valve that gives honest people a fresh start, and helps them regain normal lives.

While there is little reason to feel happy about filing bankruptcy, you shouldn't feel like a loser either. If you are going through a financial crisis you are not alone. Over a million people a year turn to the bankruptcy laws for debt relief. Statistics show that the cross section of individuals and couples filing bankruptcy mirror society as a whole by income, type of employment, home ownership and almost any other relevant category. In other words, anyone can find themselves in bankruptcy.

Detroit Bankruptcy Lawyer.com Attorney Walter Metzen Bankruptcy Law Office is conveniently located just one block from the United States Bankruptcy Court in Detroit Michigan. Suite 3156 Penobscot Bldg., Detroit MI 48226. The US Bankruptcy Court for the entire Metro Detroit area is located at 211 West Fort Street, Detroit Michigan 48226. Call 313-962-4656 or 888-Debt-Gone for a Free Consultation.

Bankruptcy is a Right and a Privilege provided to you by the United States Constitution

The bankruptcy laws are there for a reason. On the whole, they benefit both the debtors and creditors. It is of course important to be responsible for the debts you incur, but filing a bankruptcy IS an act of responsibility. It puts you in a position to move forward, to become productive once again, provides closure, and pays your creditors from your non-exempt assets (or by other means if the court so approves in a Chapter 13 or 11 context).

It is important to seriously explore bankruptcy as an alternative to struggling for years to no avail. There are many factors to consider before filing a bankruptcy, but one of them should not be a guilty conscience.

Detroit Bankruptcy Lawyer.com Attorney Walter Metzen Bankruptcy Law Office is conveniently located just one block from the United States Bankruptcy Court in Detroit Michigan. Suite 3156 Penobscot Bldg., Detroit MI 48226. The US Bankruptcy Court for the entire Metro Detroit area is located at 211 West Fort Street, Detroit Michigan 48226. Call 313-962-4656 or 888-Debt-Gone for a Free Consultation. Recognize any of these Warning Signs?

Warning Signs. In assessing whether or not you should seek some kind of debt relief, consider the following questions:

• Do you ever use one form of credit, such as a credit card or debt consolidation loan, to make payments on other debt? Or to put it in Biblical terms "Robbing Peter to Pay Paul"?
• Have you taken one or more cash advances greater than $500 in the past few months to pay living expenses such as everyday utility bills or even groceries?
• Do you ever borrow from friends or family to meet regular expenses, such as food and utility bills?
• Can you barely make the minimum required payment on credit cards or other debts?
• Are you receiving harassing calls or letters from creditors or collection agencies?
• Are you being sued (summons and complaint), or are your creditors threatening to sue you?
• Are your wages being garnished, or are your creditors threatening a garnishment?
• Are your financial problems impacting your health or relationships due to stress?
• Do you owe two months salary or more on your credit cards?
• Are you using one-quarter or more of your take-home income to pay credit card bills and personal loans (excluding mortgage payments)?
• Are your revolving credit cards charged to the limit or maxed out?
• Have you bounced more than one check in the past year?
• Are you without cash reserves for a rainy day or emergency?
• Are you behind on house (mortgage or rent) or auto payments?
• Are your creditors threatening to take your car, house, or other property (foreclosure or repossession)?
• Are you behind on your taxes or do you owe the IRS, State of Michigan or City of Detroit?

If you answered "yes" to one or more of the preceding questions, you should consider seeking some form of debt relief. Bankruptcy, of course, offers very effective debt relief, but there are possible alternatives to filing bankruptcy which shall be covered below.

Alternatives to Bankruptcy

Generally speaking, the chief alternatives to bankruptcy are some form of negotiation and settlement with one or more of your creditors, perhaps by making payments through a nonprofit credit counseling service. Anytime you are dealing with alternatives to bankruptcy, be sure that you do not "put all your eggs in one basket." In other words, do not let a foreclosure sale occur or allow a judgment to be entered against you without first finding out your options under bankruptcy laws.

Nearly all large companies such as credit card issuers have limited or no resources for dealing with individual borrowers. Many of my clients relate to me that they have called and written to their creditors to attempt to work out a method of paying their debts. Most often, these people find that no matter how good their reason for wanting to work out their debts, and no matter how hard they try to pay their creditors what they can afford, the creditors simply will not "work" with them. This is because these creditors are vast bureaucracies that have no method and no personnel to deal with people on an individual basis. There are some limited exceptions, however. If your situation is like one of the following, you may want to try to work the problem out without filing bankruptcy:

• Deed in Lieu of foreclosure
  If you have one mortgage on a home or other piece of real estate and you cannot sell the property and simply wish to relieve yourself of the mortgage obligation, it is possible that you can negotiate a "deed in lieu of foreclosure." This is an agreement where you give the property to the creditor, who, in turn, releases you from the debt. This saves the mortgage company the cost of foreclosing against you and allows you to walk away from the debt without further responsibility. You can try to negotiate this on your own, or you can hire an attorney to do it for you. Generally, mortgage lenders will not agree to this arrangement unless there is some equity in the property or the property is at least worth the amount that is owed. The mortgage holder will not accept the property if there is any other debt on the property, such as a second mortgage or a judgment lien.
  It is important to note automobile lenders most often will not release you from the debt upon surrender of the vehicle. You can expect that following the surrender, the vehicle lender will seek to collect the deficiency (the amount of the debt remaining after sale of the vehicle.)
  
• Re-amortization of Past-Due Mortgage Balance
  If there is a good reason why you fell behind in payments (such as temporary job loss, illness, or injury), a mortgage holder will sometimes consider adjusting the mortgage so that the past due amount is added in to the total and the term of payments is extended (maybe they will put the payments at the end of the loan). The creditor will generally consider this only where your debt-to-income ratio is acceptable and there is no other mortgage debt that is in arrears.
  
• Negotiation of a Single Debt
  If there is just one (or a few) old debts you are trying to "clean up" on your credit report, it is possible that the creditor or its collection agency will be willing to settle their debts with you for significantly less than the total amount that you owe. This is usually only true of older debts, which may have been bought from the original creditor by another company . Again, you can negotiate a settlement yourself, or hire an attorney to assist you and represent your interests. I usually don't do this because I've found it to be of little help to my clients unless they can afford to pay the creditor right away with a lump sum of money such as after getting a tax refund. Bankruptcy is usually simpler, quicker, cheaper and easier on my clients mental health.
  
• Credit Counseling Services
  Credit Counseling services can sometimes help, although most of my clients who have tried have failed and eventually just filed Bankruptcy. There are a number of nonprofit credit counseling services available in the yellow pages under "credit counseling." These services negotiate with your creditors to the extent that they are able. Generally, they can negotiate more favorable terms only with unsecured creditors (debts for which there is no collateral), such as credit card issuers. The credit counseling service attempts to get your unsecured creditors to settle for less than the full amount of the debt that you owe, and also tries to get the creditors to give you a lower interest rate. Some credit card companies will agree to these types of terms so long as they are getting their payments through the credit counseling service. However, other creditors are simply unwilling to work with credit counseling services, and the credit counseling service has no way in which to force the creditors to work with it. To be sure that you are selecting a reputable firm, be sure to ask whether or not you will be held responsible for late charges or other fees if the service does not make their monthly distributions on time. You can also ask for references from current or former clients. Unfortunately Credit Counseling Agencies have no real POWER to deal with your creditors. When you file a bankruptcy the ball goes into your court.
  
• "Mortgage Assistance" Companies and other Scam Artists
  Unfortunately, there are a growing number of companies that send advertisements to people with pending foreclosure actions. These "mortgage assistance" companies, who get your address from the court records, promise that they can stop your foreclosure and help you avoid a bankruptcy. Please be very careful of these companies. The vast majority of the time, these companies simply prey on people who are in a desperate situation, taking advantage of your desire to keep your home and "avoid bankruptcy." Typically, the "mortgage assistance" company will require a payment (usually one or two month¿s mortgage payments) and will promise to obtain another mortgage loan to pay off your existing loan or to negotiate with your mortgage company to stop the foreclosure. They will wait until just before (unfortunately sometimes AFTER) the foreclosure sale to tell you that they were not able to help you, and that you should see a bankruptcy attorney. At that point, sometimes it is too late. You will be referred to a lawyer who has a good "working relationship" with the company, to whom you will need to pay even more money.
  If you choose to use one of these firms, be sure to ask for references of clients that for whom the company has been successful, and check these references. Also, do not put all of your hopes on this type of service until it is too late to file a bankruptcy that will stop the foreclosure.
  
• "Do Nothing"
  Your financial life may be so destitute that even if creditors got a judgment against you, it would be worthless. If you are older and receiving pension and/or social security and don't own many assets, you may be "judgment proof". You'll probably still have to deal with creditor calls for awhile.

How Bankruptcy Affects Your Credit

When bankruptcy is appropriate, it is usually not a question of maintaining good credit - your credit standing is probably already damaged. Judgments, delinquent payments, and credit counseling services are reported to the credit agencies for long periods of time like bankruptcy. Few lenders give credit under those circumstances anyway, and even if you satisfy a judgement it still is a part of your credit history.

The credit reporting bureaus report a Chapter 7 filing for a period of almost ten years. The credit bureaus report a Chapter 13 filing for almost seven years as long as you successfully complete the plan. If the plan is dismissed, then the Chapter 13 will be reported for ten years as well.

A fresh start allows you to re-establish your damaged credit. Aside from being reflected on your credit report, the bankruptcy laws do not restrict you form obtaining credit after the case is completed. Keep in mind that whether you have good or bad credit is always a subjective decision in the eyes of a prospective creditor. Of course, you must be prepared to explain why it is necessary to file if a prospective creditor should inquire. Maintaining a good "track record" after filing will minimize the adverse impact of the financial troubles leading to the bankruptcy. With the right strategy, you can build good credit once again. Our office provides a booklet free of charge to each client explaining how to re-establish credit after bankruptcy.

There may be some "pre-filing" strategies to re-establish credit. A non-filing spouse's credit report is not affected by the bankruptcy unless the spouse is a co-signer on any of the debts. If only one spouse files then the other may be able to maintain a good credit standing. Also, if there is a bank card or line of credit with a zero balance before filing, you may be able to use the card after filing, provided it is not revoked by the creditor.

Should I File Under Chapter 7 or Chapter 13?

You must ultimately decide for yourself whether filing bankruptcy is the proper action to take, and if so, which Chapter is better for you. Some of the factors to consider are as follows:

If you are not making more money than you need for your current living expenses (you have no "disposable income"), Chapter 13 is not a realistic option.

Chapter 7 has the advantage of wiping the slate clean and enabling you to embark on your "fresh start" immediately. With Chapter 13 you will be making payments for three to five years.

If you have a particular asset that you want to keep and that is valued above the allowable exemption then Chapter 13 may be the only alternative. For example, if you own a house with significantly more than $25,000.00 in equity and you don't want to lose it, Chapter 7 probably will not work.

If you are trying to ward off repossession or a foreclosure, Chapter 7 will not help you, and you will need to file a Chapter 13. If your debts are primarily consumer debts, and if your budget reveals that after filing bankruptcy your income substantially exceeds your expenses, it is possible that the United States Trustee could file a motion to dismiss the Chapter 7 case for "substantial abuse." In such a case Chapter 13 may be the better alternative.

Chapter 7 vs. Chapter 13

There are two basic options available to consumers under the bankruptcy laws: chapter 7 and chapter 13. The major benefit of a chapter 7 is to "discharge" or get rid of unsecured debt such as credit cards and medical bills. You will be allowed to keep certain kinds of property under the exemptions allowed by federal and/or state laws. The definition of "exempt property" differs in each state and usually includes your home, car, clothing, furniture, household appliances, and tools of your trade -- each to a certain dollar amount.

While a chapter 7 bankruptcy is appropriate under the right circumstances, its use is limited in comparison to a chapter 13. A chapter 13 can be used to protect "unexempt property." In a chapter 13, you pay a portion of your monthly income to a trustee for distribution to your creditors. A repayment plan is useful when you are behind on your home mortgage payments, taxes, or a car loan. A chapter 13 may be in effect from three to five years. It normally allows you to pay less than you owe. The extended payment period allows you to make smaller payments. You will be allowed to keep part of your monthly income to pay for living expenses like food, clothing, rent/mortgage, and medicine.

To qualify for a chapter 13 repayment plan, you must have regular income, and your unsecured debts must not exceed $250,000. If your unsecured debts exceed $250,000, you may be able to qualify for a repayment plan under chapter 11. Proceedings under chapter 11 are much more complicated and expensive (but not more powerful) than those available under chapter 13. Many law firms do not offer a chapter 13 bankruptcy option because of the extensive law office administration required. However, the attorneys at the Michigan Bankruptcy Lawyers PLL are happy to always offer this option.

A "Chapter 20 bankruptcy" is an attorney-created combination of a chapter 7 and a chapter 13. However, it is extremely rare for the savings of a chapter 20 to more than offset the additional attorneys' fees. In other words, we will only recommend a chapter 20 if it is in your best interest, not ours, we never plan a "Chapter 20", but sometimes it happens.

After completing a chapter 7, you may not start another chapter 7 for six years. There is a minimal waiting period after a chapter 13. The attorneys at Michigan Bankruptcy Lawyers PLLC can review your situation and advise whether to seek a chapter 7 or chapter 13. The best bankruptcy alternative for you depends on a number of variables, including the source of your income, the amount and types of your bills, your desire to protect your cosigners, the equity you have in your property, and what property you wish to keep. We will be happy to give your financial situation careful consideration and explain your rights fully, but the decision to file is left to you.

Chapter 7

Chapter 7 is commonly known as straight or liquidation bankruptcy. Under this chapter, you are seeking to have your debts discharged, which means the legal obligation to pay creditors is canceled. You can pay all or some creditors after bankruptcy if you feel morally obligated, but is not legally required. You can file Chapter 7 no more than once every 6 years. Certain types of debts are non-dischargeable. With some exceptions, they include student loans, taxes, alimony and child support, fraudulent debts, debts for embezzlement or larceny, debts incurred from purchasing luxury items or for taking large cash advances shortly before filing, fines and penalties, debts incurred as a result of a willful or malicious injury, unscheduled debts and debts denied discharge in a prior bankruptcy.

Secured debts are fully dischargeable but you may lose the collateral because valid liens survive bankruptcy, and the creditor is free to repossess or foreclose on the collateral once the bankruptcy case is concluded. If you want to keep the collateral you must reaffirm the debt. Reaffirmation means a legal re-obligation to pay the debt as if the bankruptcy never occurred. In exchange for reaffirming the creditor will allow you to keep the pledged property because the creditor is assured payment. Reaffirming requires that you sign a written contract that is filed with the court. You will most likely want to reaffirm on your home and automobile, but not charge cards or other debts unless there is good reason.

Once your petition is filed, a trustee is appointed to represent the best interest of your creditors. The trustee is given broad power under the law. He can set aside improper transfers of property, and can even recover money paid to creditors shortly before filing. The trustee makes sure that all creditors are treated fairly and equally in the bankruptcy proceeding.

Most importantly, however, the trustee is responsible for collecting and liquidating certain valuable assets at a bankruptcy sale. Your creditors are notified of the sale and have an opportunity to bid, or object to someone else's bid. Sale proceeds are distributed to creditors based upon the classification and priority of their debt. Any money left over is returned to you after creditors and administrative expenses are paid.

The trustee theoretically has an interest in all non-exempt assets you own up to the date the petition is filed. These assets, as a group, are called the bankruptcy estate. With limited exception, property you acquire after filing does not become part of the bankruptcy estate, and can not be taken by the trustee.

Does this mean you lose everything? Not at all. In most cases, your valuable property is either secured or exempt. Much of your other property, as a practical matter, may not be worth the expense of conducting a sale. A typical rule of thumb is that property with a value of less than $1000 will not be sold by a trustee.

The laws allow you to keep certain property above any liens or encumbrances to preserve your ability to live. These are called property exemptions. Exempt property, up to certain value limits, includes your home, vehicle, furniture, appliances and various other personal possessions. A complete list of exempt property is found under this site on the Assets & Exemptions page.

Can the trustee sell secured property? If the trustee sells secured property, he must first pay off the lien. Therefore, the trustee will not sell any secured property that at a minimum does not exceed the value of the lien. Therefore, if you can afford the payments on the secured debts, you can reaffirm with the creditor to keep the collateral if you choose.

For this reason, most people can keep their home and automobile, as there is usually limited equity in such property. A home, for example, may have a secured mortgage which leaves little or no equity in the property. Equity is further eroded if you deduct 10% of the home's sale price as an estimate of closing costs. In New York, a husband and wife can exempt up to $20,000 of equity in their home. As long as equity does not exceed the exemption amount, the trustee is left with nothing to distribute to unsecured creditors if the property were sold. Therefore, the home has no value to the bankruptcy estate, and the trustee will not sell the property. The same holds true for a motor vehicle with equity less than $2,400.

Approximately 45 days after filing the petition, you are required to attend a meeting, known as the Section 341 first meeting of creditors. There, the trustee will determine whether there are assets to be liquidated, or whether there has been any improper conduct affecting your case. There is usually only one meeting, but occasionally a second meeting is scheduled if further information is needed. Your creditors are free to appear and ask questions as well, but creditors rarely attend. The length of the meeting may vary. It usually takes no more than an hour for all scheduled cases on the calendar to be completed.

Approximately two months after the meeting date, the court issues the discharge order signifying the conclusion of the case. The two month waiting period is designed to allow the trustee or a creditor enough time to file an objection to dischargeability, if appropriate. These objections to discharge are known as adversary proceedings, and are usually based on some alleged fraudulent activity. The U.S. Trustee's office, a branch of the Justice Department, can also object if they find that there has been a substantial abuse of the bankruptcy laws. The vast majority of cases, however, will be concluded without objections, and honest debtors should have nothing to fear.

The average case is completed in three to four months. You then have a fresh start, free from the harassment of creditors. While your creditors will not be paid after discharge, some can treat the discharged debt as a loss on their income tax return.

Chapter 13

Chapter 13 is known as the wage earner or repayment plan bankruptcy. You can think of Chapter 13 as a debt consolidation, where you group all your debt together, and repay creditors over three to five years through an installment payment plan formulated with the help of your attorney. Chapter 13 can be filed more often than Chapter 7, as long as it is filed in "good faith".

The main advantage of filing under Chapter 13 is that your property is not liquidated by the trustee as in Chapter 7. You keep all of your property as long as you comply with the plan. But you are not completely discharging your debt. You must pay your creditors a percentage on the dollar established in accordance with your assets and ability to pay.

Not everyone can file under Chapter 13. For instance, there is a debt ceiling, or limit to the amount of debt you can have. Total secured debt cannot exceed $750,000, and unsecured debt cannot exceed $250,000.

The plan must also be feasible. To be eligible, you must have regular income such as wages, pensions, self-employment or other income sufficient to fund the plan. The plan cannot run longer than five years, and you must show the court that you have enough disposable income to pay your plan payments within that time.

Corporations cannot file under Chapter 13, and must use the more complex and expensive Chapter 11 bankruptcy if they wish to reorganize. A business proprietor that is not incorporated, however, can file under Chapter 13 provided the debt ceiling and other provisions under Chapter 13 are met.

The Chapter 13 Trustee acts as a disbursing agent. He collects your installment payments, and distributes them to creditors according to the plan.

All creditors may not be fully paid. Unsecured creditors, in many cases, may be paid only a small percentage on the dollar, and upon successful completion of the plan the remainder of their debt is discharged similar to Chapter 7.

To determine how much of your creditors will be paid in Chapter 13, the bankruptcy code provides two guidelines which determine the minimum amount unsecured creditors must receive through the plan. First, the disposable income test requires that you pledge all of your disposable income into the plan for at least a three year period of time. Disposable income is your monthly income after your monthly living expenses are paid. In other words, you must pay unsecured creditors as much as you can afford for at least three years. Second, under the Chapter 7 test, you must pay unsecured creditors the same amount through your Chapter 13 plan as they would get had your property been liquidated under Chapter 7. Put another way, your plan must pay unsecured creditors an amount equal to the value of your non-exempt property.

Let's take an example. Assume we have a husband and wife owning a home with $30,000 worth of equity. Remember, only $20,000 worth of equity can be exempted. That leaves $10,000 worth of equity which, theoretically, would have been distributed to unsecured creditors if a Chapter 7 petition were filed. So, under the Chapter 7 test, this means that unsecured creditors must receive a total of $10,000 over the duration of a Chapter 13 plan. Now, let's assume there is $14,000 in total unsecured debt. By dividing $14,000 into the minimum $10,000 to be paid, you arrive at the percentage to be paid to unsecured creditors. 10,000 divided by 14,000 equals 0.71 or sevently-one cents on the dollar.

What about priority and secured debts? In every case, your plan must pay priority creditors in full. Also, secured creditors are entitled to be paid an amount equal to the value of their collateral. The difference between the value of the collateral and the balance of the note is the unsecured portion of the debt, and is grouped together and paid the same percentage as the other unsecured debts such as credit cards.

You must also provide for a trustee commission of approximately 5% of the total debt paid through the plan. A simplified Chapter 13 Plan would look like the chart below. Let's assume this debtor owes $1,500 in back taxes, has $12,000 in credit card and other unsecured debt, and has a $6,000 loan secured with a car having a value of $4,000. Also, let's assume this debtor has no non-exempt equity and very little disposable income, which makes this debtor eligible to pay the minimum five cents on the dollar to their unsecured creditors.

Similar to Chapter 7, in Chapter 13 you must attend a Section 341 meeting of creditors, held within 45 days of the filing. Unlike Chapter 7, however, the meeting is followed by a confirmation hearing. At the confirmation hearing, the plan is presented to a bankruptcy judge for his review. If there are no objections, and the plan meets the requirements of Chapter 13, then the judge will confirm the plan, which makes it binding upon creditors.

The first payment under the plan is due approximately 30 days after filing the petition. Thereafter, the payments must be made regularly under the terms of the plan. Debtors can make payments to the trustee themselves, or for convenience, the payments can be deducted directly from their wages.

Chapter 13 may have some advantages aside from allowing you to retain property which is otherwise non-exempt in Chapter 7. For instance, your co-signors are protected if the co-signed debt is paid in full through the plan. Delinquent mortgage payments, back property taxes and missed car payments can be paid through the plan to stop foreclosure or repossession.

Chapter 13 is commonly used to save a home from foreclosure. Under the code, a plan which proposes to pay all mortgage arrears through the plan can decelerate a mortgage default. You must, however, have enough disposable income both to fund the plan, and to start making the current mortgage payments once again directly to the lender as they become due after the petition is filed. You can pay student loans, child support arrears or restitution through the plan, and some debts which are non-dischargeable in Chapter 7 may be partially dischargeable as an unsecured debt in Chapter 13.

When Bankruptcy Affects your Credit

When bankruptcy is appropriate, it is usually not a question of maintaining good credit - your credit standing is probably already damaged. Judgments, delinquent payments, and credit counseling services are reported to the credit agencies for long periods of time like bankruptcy. Few lenders give credit under those circumstances anyway, and even if you satisfy a judgment it still is a part of your credit history.

The credit reporting bureaus report a Chapter 7 filing for a period of almost ten years. The credit bureaus report a Chapter 13 filing for almost seven years as long as you successfully complete the plan. If the plan is dismissed, then the Chapter 13 will be reported for ten years as well.

A fresh start allows you to re-establish your damaged credit. Aside from being reflected on your credit report, the bankruptcy laws do not restrict you form obtaining credit after the case is completed. Keep in mind that whether you have good or bad credit is always a subjective decision in the eyes of a prospective creditor. Of course, you must be prepared to explain why it is necessary to file if a prospective creditor should inquire. Maintaining a good "track record" after filing will minimize the adverse impact of the financial troubles leading to the bankruptcy. With the right strategy, you can build good credit once again. Our office provides a booklet free of charge to each client explaining how to re-establish credit after bankruptcy.

There may be some "pre-filing" strategies to re-establish credit. A non-filing spouse's credit report is not affected by the bankruptcy unless the spouse is a co-signer on any of the debts. If only one spouse files then the other may be able to maintain a good credit standing. Also, if there is a bank card or line of credit with a zero balance before filing, you may be able to use the card after filing, provided it is not revoked by the creditor.

Warning Signs. In assessing whether or not you should seek some kind of debt relief, consider the following questions:

• Do you ever use one form of credit, such as a credit card or debt consolidation loan, to make payments on other debt? Or to put it in Biblical terms "Robbing Peter to Pay Paul"?
• Have you taken one or more cash advances greater than $500 in the past few months to pay living expenses such as everyday utility bills or even groceries?
• Do you ever borrow from friends or family to meet regular expenses, such as food and utility bills?
• Can you barely make the minimum required payment on credit cards or other debts?
• Are you receiving harassing calls or letters from creditors or collection agencies?
• Are you being sued (summons and complaint), or are your creditors threatening to sue you?
• Are your wages being garnished, or are your creditors threatening a garnishment?
• Are your financial problems impacting your health or relationships due to stress?
• Do you owe two months salary or more on your credit cards?
• Are you using one-quarter or more of your take-home income to pay credit card bills and personal loans (excluding mortgage payments)?
• Are your revolving credit cards charged to the limit or maxed out?
• Have you bounced more than one check in the past year?
• Are you without cash reserves for a rainy day or emergency?
• Are you behind on house (mortgage or rent) or auto payments?
• Are your creditors threatening to take your car, house, or other property (foreclosure or repossession)?
• Are you behind on your taxes or do you owe the IRS, State of Michigan or City of Detroit?
• If you answered ¿yes¿ to one or more of the preceding questions, you should consider seeking some form of debt relief. Bankruptcy, of course, offers very effective debt relief, but there are possible alternatives to filing bankruptcy which shall be covered below.

Why is it legal to file bankruptcy?

More so than in any other time in our country's history, our economy is based on consumer debt. In fact, in this age of multibillion dollar corporate bailouts, easy credit and relentless bombarding of seductive messages cajoling us to "charge, consume, buy" it is not surprising that so many people are drowning in debt.

For many of us, this debt is insurmountable and is causing family problems and feelings of hopelessness and even suicide. With credit card interest rates of 18-27%, many feel like modern day indentured servants. Many times, the debt is occasioned by unforeseen events such as loss of a job or medical bills, but more often it is simply poor planning. Nevertheless, in instituting our bankruptcy laws, Congress recognized that responsible, well-intentioned people could from time to time run into financial problems. By allowing you to recover from your debt burden you will be able to start afresh, look to the future and become a more productive member of society. This is good for you and good for society as a whole.

Bankruptcy - An Overview

Even the hardest workers and the most diligent bill-payers can find themselves with more debts than they can pay as they become due. In such cases, filing bankruptcy may provide a solution to what seems like an insurmountable problem. If you or someone you know is facing serious financial challenges, it is very important to seek the counsel of an experienced bankruptcy attorney. Once considered a last resort, bankruptcy has evolved into an accepted method of resolving serious financial problems. The bankruptcy lawyer's goals are to help debtors make a fresh start and ensure that creditors get paid. A skillful attorney can guide you through the complicated legal maze of bankruptcy.

Bankruptcy law is primarily federal in origin and therefore varies little from state to state. The United States Constitution grants to Congress the power to establish uniform bankruptcy laws throughout the United States, which ensures consistency and predictability in how bankruptcy proceedings are conducted. The individual states do, however, retain jurisdiction over certain debtor-creditor issues that are not addressed by and do not conflict with federal bankruptcy law, such as which property remains exempt from creditors' claims.

Commercial and Consumer Bankruptcy

Both businesses and individuals may file for bankruptcy. Commercial bankruptcy is a remedy available to businesses that are unable to pay their debts. Options include liquidation, in which many of the business's assets are sold and the proceeds are divided among the creditors, and reorganization or restructuring, in which the business continues to operate according to a plan that allows for at least partial payment to creditors. Consumer bankruptcy, by contrast, is a method by which individuals may be able to get out from under insurmountable debt and make a fresh start, albeit with a negative impact on their credit ratings. As in commercial bankruptcy, there are two options: liquidating assets to pay off creditors, and filing a wage-earner plan that allows the debtor to retain more assets while working to pay off his or her debts. An experienced bankruptcy attorney can help you choose the right course of action for your particular situation.

Chapter 7 Liquidation

Bankruptcy law provides two basic forms of relief: (1) liquidation, and (2) rehabilitation, also known as reorganization. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. To qualify for Chapter 7, an individual debtor has to satisfy a financial means test. In a Chapter 7 liquidation case, a bankruptcy "trustee" collects the debtor's "nonexempt" property (as opposed to the property that the debtor is allowed to keep and that is not subject to the creditors' claims) and converts it into cash. The trustee then distributes the resulting funds among the various creditors according to an order of priority described in the Bankruptcy Code. Not all creditors receive the full amount owed through this process; in fact, some may receive no payment at all. When liquidation and distribution are complete, the bankruptcy court may discharge any remaining debts of an individual (non-business) debtor. If the debtor is a corporation, it ceases to exist after liquidation and distribution, and there is therefore no reason for further discharge because the creditors cannot seek payment from an entity that no longer exists.

Chapter 11 or 13 Reorganization

In a rehabilitation or reorganization, the option often preferred by the courts, creditors may be provided with a better opportunity to recoup what they are owed. This type of bankruptcy is governed by Chapter 11 or Chapter 13 of the Bankruptcy Code. Chapter 11 generally applies to individual debtors with excessive or complex debts, or to large commercial entities like corporations. Chapter 13, by contrast, generally applies to individual consumers with smaller debts. Farmers and municipalities may seek reorganization through the Code's special chapters, Chapters 12 and 9, respectively. Reorganization provides debtors with a greater opportunity to retain their assets if they agree to pay off their debts according to a plan approved by the bankruptcy court. If the debtor fails to adhere to the plan, however, the court may still order liquidation.

Whatever the Chapter, the petitioning debtor must first undergo an individual or group briefing regarding credit counseling and budget analysis skills.

"Voluntary" and "Involuntary" Bankruptcies

Most bankruptcy cases are filed by the debtor and are thus considered "voluntary bankruptcies" (although few would "volunteer" to be in this position). Once a bankruptcy petition is filed, the debtor is immediately entitled to relief from creditors through the bankruptcy procedure known as the "automatic stay." The automatic stay freezes all debt-collection activity and forces creditors to allow the bankruptcy court to determine how payment will be made.

Not all bankruptcy proceedings are voluntary, however. Under Chapters 7 and 11, creditors, too, have the option of filing for relief against the debtor, in which case the proceeding is called an "involuntary bankruptcy." Involuntary bankruptcies are allowed only when certain minimum thresholds are met; for instance, there must be a minimum number of creditors and a minimum amount of debt. The debtor has the right to file a response to an involuntary petition, after which the court will determine whether the creditors are actually entitled to relief. If the court dismisses an involuntary bankruptcy filing because it has no merit, the creditors may be ordered to pay the debtor's attorneys' fees, damages for any losses the debtor experienced because of the bankruptcy, and even punitive damages to punish the creditors for the frivolous or abusive filing of a petition. An experienced bankruptcy attorney can provide essential advice whether you are a debtor considering voluntary bankruptcy or facing an involuntary bankruptcy proceeding, or a creditor seeking relief through an involuntary bankruptcy.

Conclusion

Lawyers specializing in bankruptcy law can help both debtors and creditors overcome obstacles to the repayment of debt. Their expertise often extends beyond bankruptcy to include debt repayment and collection options that can circumvent the need for a bankruptcy filing. Experienced bankruptcy attorneys have the knowledge and expertise to help their clients get out from under formidable debt and emerge as productive citizens, and can also assist their creditor clients in collecting what is rightfully theirs.

Walter Metzen-Bankruptcy Lawyer-(313) 962-4656-Suite 3156 Penobscot Building, Detroit Michigan 48226-Serving the Entire Metro Detroit Area and Southeast Michigan for over 10 years

THE DECISION TO FILE BANKRUPTCY

Filing a Personal Bankruptcy is a financial decision based on your amount of debt, your income, your assets, and your present ability to repay debts. It should be a last resort after you have explored other options. If you have explored those options but realize that you will never be able to pay all of your creditors, you may be a candidate for Bankruptcy.

When the expected time period for the repayment of creditors, in full, exceeds the time it would take to rebuild credit, bankruptcy should be given serious consideration. A good bankruptcy attorney or lawyer could help out with this process. We have been helping Michigan residents file personal Bankruptcy for over 10 years. Instead of struggling with minimum payments for months or years and ending up in the same place you are today, you can use that time to rebuild credit and save money for the future.

If you are in a situation in which you have accumulated more debt than you will be able to repay in the foreseeable future, then you probably will benefit greatly from filing bankruptcy and taking a debt-free fresh start.

By filing bankruptcy with qualified attorneys, you give yourself a chance to rebuild and re-establish credit and staying in line with the law. Many people get too caught up in worrying about how they¿re going to incur future debt, when the focus should be on the best way to deal with the debt they have now.

We are a debt relief agency that provides bankruptcy assistance. If you need relief from debt, the best thing you can do is call us as soon as possible at 313-962-4656 or toll free at 888-4Walter or 888-777-FILE in order to set up an appointment. There is no charge for the first office interview and evening appointments are available. We normally recommend that you come in as soon as possible so that your rights can be secured without delay. Many people postpone or put off consultation with a qualified specialist only to make major blunders such as borrowing more money to pay off debts. It is best to have the free consultation instead of waiting to see us as a last resort. When you come to see us, we look at your budget (income and expenses) and analyze the debts involved and advise what course of action to take. Walter Metzen is a Board Certified Specialist in Consumer Bankruptcy Law by the American Board of Certification and specializes in Chapter 13 payment plans and Chapter 7 straight bankruptcy.

Chapter 13 works well for employed persons who can make some type of payment. Chapter 7 is also available for cases where a payment plan is not feasible or appropriate. We will recommend the best action for your case.

With Chapter 13, the payment plan is usually a LOT LESS than what one is paying without the help Chapter 13 offers! We can usually consolidate all debts at a payment that is affordable, and nothing will be lost or given up. The home, car and belongings are protected by the filing of Chapter 13. Also there is automatic protection from creditors upon filing. This means that harassment stops, no one can garnish wages, take property, repossess the car or truck, foreclose on the home, etc. But one needs to file a case in order to get the automatic protection.

On completion of the Chapter 13 plan debts are wiped out, paid, discharged, etc. Chapter 13 can usually pay off debts much more quickly because in most cases the interest and penalties are stopped on your charge and loan accounts. Payment amounts are generally reduced. When you visit us, we can explain how it applies to you, but the relief usually is very dramatic.

In most cases, you do not need to bring money to get your case started. This is true for most Chapter 13 cases since attorney fees are included in the payment. The payment is set based on your budget....your ability to pay. That is why we need to go over your income and expenses in detail. Our office is unique in that we have a computer program which calculates your budget of income and expenses while you watch it on the monitor. You can see the income and expenses broken down as we type it in, and see just where your money goes each month. This enables us to calculate how much you can afford to pay toward your debts very quickly, while you watch us. You just need to know how much you make in a typical week, and how much you spend on house payments, rent, utilities, insurance, groceries, gasoline, etc. House payments and rent are generally not included in the chapter 13 plan unless you are behind. If your mortgage is past due, a chapter 13 can help catch it up and stop a foreclosure from occurring if the case is filed on time. Car payments are usually included in the chapter 13 plan and the car is paid off as part of the plan. Generally, no one can repossess or seize your car or other property once your chapter 13 is filed. Your wages, earnings, bank accounts, and personal property are protected by the Chapter 13 "automatic stay" against creditors.

Chapter 7 is "straight bankruptcy" and discharges most debts without making payments and is appropriate when you cannot afford a payment plan under Chapter 13 or when your circumstances do not warrant a payment plan. The relief under Chapter 7 is very dramatic since the debtor receives an "automatic stay" against creditors.

There is no payment plan under Chapter 7 bankruptcy. Most debts are discharged. We can discuss which chapter is best for you.

Information to Bring to the First Interview:

When you meet with us, bring as many of your pay-stubs for a typical work week or biweekly pay period from the past 2 months that you can locate....and if you are married, your spouse should come also, if possible. Sometimes we file for just one spouse, but usually both spouses are on the debts and both need protection . Bring us ALL debts....the NAMES, ADDRESSES, ACCOUNT NUMBERS AND APPROXIMATE BALANCES of EVERY creditor to whom money is owed, if you have a recent credit report bring it, if not, we can get it upon payment of your initial retainer fee. These debts would include car payment and house payment information, and all bills, charge accounts, debts, lawsuits, collection letters, etc. We need the balances owed on all your debts as best as you can estimate them. Exact amounts are not important; approximate amounts are sufficient. We also need to know how much you have earned for the year to date and the prior 2 calendar years. We also need to know the value of your property so bring in a tax statement showing Equalized Value or appraisals on any real estate you own. It is also necessary to list the name and address of your spouse if you are married and your spouse is not filing with you. Information must also include the name and address of anyone on debts with you such as cosigners or guarantors of your debts. If you have cosigned for someone else, or someone has cosigned for you, their name, address and the name and address of the creditor need to be included in the information we prepare.

These contents are general and should not be relied on as legal advice for your case. Every case is different. That is why you should speak to us about your situation as soon as possible. The sooner we can help, the better we can do, usually. There are some deadlines that are important, like foreclosure dates, repossession auctions, etc. If one waits too long, the property is lost for good. It is much easier for us to protect what you have, than to try to get it back for you once it is seized by a creditor! So it is best to consult quickly. Also, the longer one waits, the more interest and late charges are added to balances. Chapter 13 can stop interest and late charges on most debts, so, again, delay generally is not good.