Bankruptcy (Chapter 7 & Chapter 13)
Filing for bankruptcy is a tool, not a stigma. However, the process can be complicated and intimidating. Understanding and successfully navigating the federal bankruptcy code can be difficult and time consuming without utilizing the services of a well-versed attorney. Kevin Cummings, Esq. has been representing clients in bankruptcy matters for almost 20 years.
As we have advised some reluctant clients over the years, if protection under the bankruptcy code can successfully work for GM, Chrysler, or the City of Detroit, it can work for the average client too. A number of our clients have communicated how grateful they were for the peace of mind that comes with lifting a heavy financial burden away from their shoulders after they were done with the bankruptcy process.
Over the years, experience has proven that if you are considering protection under the bankruptcy code you likely have some doubt in the process, combined with a little bit of fear and uncertainty, as well as many important questions.
The most common questions about the bankruptcy process include:
- Will I get to keep my house or car?
- Will I have to liquidate my 401k?
- If I file, does my spouse have to file as well?
- How long will the case take?
- Will I lose my job if I file?
- What will happen to my credit rating?
- Will I ever be able to apply for a credit card again?
The caveat is that the answers to those questions depend on your individual circumstances and you should always seek the advice of an attorney before filing a bankruptcy petition. The good news is that the law allows (in many instances) for protection of your home, car, retirement, and other property.
Additionally, filing for bankruptcy also provides you with some immediate protections:
- The stopping of collection phone calls and emails.
- A stay of foreclosure actions.
- Protection from wage garnishments.
- Protection from repossession of a vehicle or other property.
In some instances an emergency petition can be filed to stay or prevent a looming garnishment, repossession, or foreclosure.
Kevin P. Cummings PLC: Brighton and Ann Arbor Bankruptcy Attorney
Kevin P. Cummings PLC handles both Chapter 7 and Chapter 13 bankruptcies. At their most basic level, a Chapter 7 bankruptcy is a liquidation of debt, a Chapter 13 is a reorganization or restructuring of your debt. Which filing is appropriate is based mainly on your specific circumstances, the amount of income earned by you or you and your spouse jointly, and the type and value of property you own.
In some instances, a Chapter 7 is the best option, in other instances a Chapter 13 is preferable. A Chapter 7 case can take mere months, a Chapter 13 case can last 3 to 5 years. As stated before, if you’re considering bankruptcy you should confer with an attorney to discuss in great detail which is the best option based on your particular financial situation, have the law explained to you, and seek a full understanding of your rights before you file your petition.
We can assist you in choosing the best filing type for your individual situation. Contact our office to determine if protection under the bankruptcy code is the right option for you.