Detroit Bankruptcy Lawyer

Detroit Bankruptcy Lawyer Bankruptcy Attorney, 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.

Consumer Bankruptcy

When an individual falls desperately behind in his or her debt payments, one option may be to declare bankruptcy, a legal proceeding conducted in a federal bankruptcy court that allows the debtor to be relieved of some or all of his or her debts. Filing bankruptcy is not a panacea, however. Although in many ways bankruptcy can give a person a fresh start, it is important to remember that bankruptcy can also negatively affect his or her credit rating and make it hard to obtain credit in the future. A lawyer experienced in bankruptcy law can advise you as to whether bankruptcy may be the right move for you.

Bankruptcy Choices for Consumers

Consumers, like businesses, have options in terms of which type of bankruptcy to pursue. These options are set forth in separate chapters of the federal bankruptcy law-called the Bankruptcy Code-and they are commonly referred to by their chapter numbers. Chapter 7 bankruptcies, also called "liquidation bankruptcies," are the most common form chosen by consumers. In a Chapter 7 bankruptcy, individual debtors liquidate their assets in order to be relieved of their debts. The Chapter 7 proceedings begin with the debtor's filing of a petition with the bankruptcy court, which triggers the "automatic stay"-bankruptcy terminology for the termination of all debt-collection activity. The court appoints a trustee who oversees a Chapter 7 case and liquidates the debtor's assets in order to pay off the debts. In many cases, however, the debtor's assets are exempt or already subject to valid liens, so there will be no assets to liquidate. If there are assets, the trustee collects the sale proceeds in a fund from which the debts are paid to the extent possible. When all of the proceeds are distributed, any remaining unpaid debts are discharged, meaning that they no longer exist and the debtor has no further obligation to pay them. Some debts, however, are non-dischargeable, such as taxes, damages resulting from the debtor's willful or malicious acts, debts incurred by giving false financial information, and some debts incurred just prior to filing for bankruptcy.

Beginning in 2005, however, consumers cannot automatically select Chapter 7 liquidation. He or she must qualify by meeting a financial means test, failing which he or she will be channeled into Chapter 13.

Alternatively, a consumer may choose (or be channeled into) bankruptcy under Chapter 13 if he or she has a stable income, believes the financial crisis is temporary, wants to repay at least some debt, and qualifies financially. The debtor must have less than $307,675 in unsecured debt and $922,975 in secured debt, however, in order to be eligible for Chapter 13 (note that these amounts generally change every three years, according to a pre-set formula). A Chapter 13 proceeding, often called a wage-earner plan, is, like a Chapter 7 bankruptcy, initiated by filing a petition. Also as in Chapter 7 cases, the filing of the petition stops the creditors from trying to collect on their debts. The debtor then has time to file a plan that sets forth the details of how he or she intends to pay off the creditors in the next three or five years, depending on the length of the plan. Creditors may ask questions about and object to the plan. If the court approves the plan, however, the creditors can take no action outside the plan's scope to collect their debts. Once the plan is completed, the debtor is entitled to a discharge, which releases him or her from all debts provided for or disallowed under the plan. In other words, creditors have no further rights with regard to discharged obligations.

Chapter 13 has certain advantages over Chapter 7 in consumer bankruptcies. For example, there is no eight-year waiting period before a consumer can file for bankruptcy again after filing for Chapter 13 relief. Also, Chapter 13 allows the debtor to discharge more types of debts than Chapter 7 does. And under Chapter 7, the court may order that all of the consumer's assets be sold, whereas under Chapter 13 the debtor may be able to retain more of his or her assets. A consumer's choice between Chapter 7 and Chapter 13 is not necessarily permanent; once proceedings have begun, a case may be converted to a different chapter. Once converted, however, the case may not be converted back again. Skilled and knowledgeable bankruptcy attorneys can advise consumers as to which chapter would be the best choice for them.

Most consumer bankruptcy cases are initiated voluntarily (i.e., by the consumer himself or herself), but they can also arise involuntarily when creditors band together and attempt to force the debtor into bankruptcy. A minimum number of creditors and amount of debt are required for an involuntary bankruptcy to proceed, and creditors face stiff penalties if they initiate an involuntary bankruptcy for invalid reasons and the court sides with the debtor.

Conclusion

Bankruptcy can be an expensive process and has serious long-term effects. There are alternatives to bankruptcy, such as working informally with creditors to develop a plan for repayment, working with a private credit counselor, or seeking the assistance of a nonprofit credit-counseling agency. Whether you are a debtor or a creditor, it is essential to seek the counsel of an experienced bankruptcy attorney in order to best protect your financial well-being.

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.

Surviving the Emotional Effects of Bankruptcy

No matter what circumstances ultimately led to filing bankruptcy, both the practical and the emotional impact on the debtor will be huge. Confronting the emotional and psychological issues surrounding bankruptcy and reaching an understanding and acceptance of the situation are essential to rebuilding and maintaining a successful financial life. An experienced bankruptcy attorney can guide a debtor through the complicated legal, financial, and emotional maze of bankruptcy and steer him or her in the right direction for the future.

Filing bankruptcy can, without a doubt, stir up many negative emotions. The debtors' sense of self, identity, and worth are often closely tied to their financial circumstances. Loss of money can thus be experienced as a loss of identity, self-esteem, and confidence. We live in a society in which image is important and lifestyle is seemingly bought through possessions. Money can be viewed as a powerful currency not only in a purely economic sense but also in relationships, and thus a real or perceived loss of interpersonal power can ensue when bankruptcy is filed.

Understanding these emotions can help disentangle the practical realities of money from the possibly destructive or limiting emotional responses to a bankruptcy filing. In order to come to terms and deal constructively with the situation, the debtor may work toward the following goals:

• Deal with practical realities. As the debtor gets his or her finances under control, a greater general sense of control will follow.
• Learn from experience. Take steps to ensure future financial security.
• Learn new skills to protect financial well-being in uncertain economic times.
• Learn to detach self worth from material wealth.
• Experience the feelings of loss, depression, anger, sadness, and shame, and in time be able to let go of those feelings and move on.
• Let go of resentment and blame.
• Exercise self-compassion. Although for many filing bankruptcy feels like life is over, it really can be a fresh start in many respects.

At all times of loss, people tend to feel that their entire foundation has been shaken and that their most fundamental sense of security has been disrupted. They question their trust in themselves, in others, and in the world at large. Although it may be natural for many to bury these frightening emotions, bringing these core insecurities to a conscious level can actually reduce the fear and the feeling of being out of control and enable individuals to start addressing their situation in a constructive manner. In addition, the counsel of a seasoned bankruptcy attorney can see a debtor through the tough times and guide him or her to a brighter financial future.

Wage Garnishments

If you are currently experiencing a garnishment, you will be able to stop the garnishment by filing a bankruptcy case. As soon as a bankruptcy case under either Chapter 13 or Chapter 7 is filed, the Bankruptcy Court issues an order that prohibits creditors from garnishing or levying any of your assets including wages and income tax refunds. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. What distinguishes our office from others is that we will hasten the notification process to garnishing creditors by faxing notice as soon as a case is filed. The creditor must then file a release of the garnishment with the court where it was filed and notify the employer. The employer must recognize the release of garnishment and cease the withholding of wages. The process of physically stopping the garnishment may take as long as two weeks or more, but if any money is garnished from wages earned after the filing of a bankruptcy case, the money must be returned to you. Our persistence and promptness in pursuing garnishing creditors sets us apart from other attorneys.

Repossessions

If you have recently experienced the repossession of a vehicle that you are purchasing, you may be able to get the vehicle back from the auto loan lender by filing a Chapter 13 bankruptcy case. Only Chapter 13 bankruptcy provides you with the opportunity to compel the lender to accept a repayment plan. The auto loan lender does not have to accept a repayment plan in a Chapter 7 bankruptcy.

You must have full coverage collateral protection insurance to obtain possession of the repossessed vehicle. A bankruptcy judge will not otherwise order the return of the vehicle. If you file a Chapter 13 bankruptcy case, we cannot begin to obtain possession of the vehicle without full coverage collateral protection insurance. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order that stays or prohibits the lender from selling the vehicle at an auction. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. What distinguishes our office from others is that we will hasten the notification process to the auto loan lender by faxing notice as soon as a case is filed.

Usually once a vehicle has been repossessed, the auto loan lender will apply to the Secretary of State and obtain a transfer of title in order to sell the vehicle at an auction. The auto loan lender will give you a 10-day notice prior to the auction during which time you may, without filing bankruptcy, regain possession of the vehicle by paying the entire remaining balance of the auto loan. However, if you file a Chapter 13 bankruptcy case you do not have to pay the entire remaining balance to gain possession. It is possible to gain possession and lower the car payment! In a Chapter 13 bankruptcy you do not have to pay back the entire loan to own the car; you are only required to pay its used value. The loan can also be rewritten to be paid back over a longer period of time, i.e., from three to five years. It is important that you act immediately to prevent the sale from occurring. If the vehicle is sold at an auction, it can no longer be returned.

Foreclosures

If you are facing a foreclosure or a sheriff's sale of your mortgage, you will be able to stop the foreclosure sale by commencing a Chapter 13 bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the mortgage company from following through with its foreclosure sale. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. What distinguishes our office from others is that we will hasten the notification process to the mortgage company by faxing notice as soon as a case is filed. Only Chapter 13 bankruptcy provides you with an opportunity to compel your mortgage company to accept a repayment plan. The repayment plan includes making the current monthly mortgage payment and providing for a cure of the mortgage arrears over a reasonable period of time. It is locally accepted practice that a 36-month cure of a mortgage arrearage is a reasonable period of time. For example, if you have a $400 current monthly mortgage payment and you are $3600 behind in mortgage payments, your plan would have to provide $400 per month plus $100 per month for total payment of $500 per month to maintain your current monthly mortgage payment and to cure your mortgage arrearage over a 36-month period of time. The payment would be made to the Chapter 13 trustee and he or she would make your mortgage payments for you.

The Chapter 13 bankruptcy case must be filed before the foreclosure sale occurs. A repayment plan cannot be composed in a Chapter 13 bankruptcy case where the mortgage foreclosure sale has already occurred.

Forfeitures

If you are facing a land contract forfeiture, you will be able to stop the forfeiture by commencing a Chapter 13 bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the land contract vendor from following through on its forfeiture judgment. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. What distinguishes our office from others is that we will hasten the notification process to the land contract vendor by faxing notice as soon as a case is filed. Only Chapter 13 bankruptcy provides you with an opportunity to compel the land contract vendor to accept a repayment plan. Unlike a mortgage arrearage, a land contract arrearage must be cured promptly.

Seizures

If you are facing a seizure of personal property by a bailiff or court officer, you will be able to stop the seizure by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the judgment creditor from following through on its seizure. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach creditors until two weeks after the case has been filed. What distinguishes our office from others is that we will hasten the notification process to the bailiff or court officer by faxing notice as soon as a case is filed. Under most circumstances it is recommended that you file a Chapter 13 bankruptcy case because only Chapter 13 bankruptcy provides you with an opportunity to compel the creditor to accept a repayment of the judicial lien imposed upon the property.

Levies

If you are facing a levy from the Internal Revenue Service or the State of Michigan Department of Treasury, you will be able to stop the levy from continuing by filing a bankruptcy case. As soon as a bankruptcy case is filed, the Bankruptcy Court issues an order which stays or prohibits the government from continuing its levy. Though the intent of the Bankruptcy Court is that the protection of this order takes effect immediately, often it does not. Notice from the Bankruptcy Court may not reach the taxing authorities until two weeks after the case has been filed and they are usually slow to respond. What distinguishes our office from others is that we will hasten the notification process to the taxing authorities by faxing notice as soon as a case is filed and obtaining the earliest possible release of the levy.

Under most circumstances it is recommended that you file a Chapter 13 bankruptcy case because only Chapter 13 bankruptcy provides you with an opportunity to compel the taxing authority to accept a repayment plan. The debt may not be discharged (forgiven) by the filing of a Chapter 7 bankruptcy and therefore must be paid in full. The repayment of the tax debt in a Chapter 13 plan can usually occur over a three to five year period of time without further interest or penalties.

Collection Harassment

If you are receiving embarrassing telephone calls from creditors to your home, your neighbors or on the job demanding payment of past due bills or constant notices demanding payment of past due bills, you will be able to stop these calls and notices by filing a bankruptcy case. As soon as a bankruptcy case under either Chapter 13 or Chapter 7 is filed, the Bankruptcy Court issues an order which stays or prohibits the creditors from continuing to demand payment. The failure of a creditor to obey the order may result in sanctions against the creditor and/or its collection agent.


Our firm handles legal matters in the following practice areas: Bankruptcy, Chapter 7 and Chapter 13.