Bankruptcy Overview

Chapter 13

Detroit Chapter 13 Bankruptcy Attorney

Chapter 13 bankruptcy is different than Chapter 7 in several ways. Instead of debt being discharged completely, a person may repay all or a portion of his or her debts under the supervision and protection of the bankruptcy court. If you need help with Chapter 13 bankruptcy, trust your case, questions, and concerns to me, bankruptcy lawyer Walter Metzen.

Under Chapter 13, if the court approves the debtor’s plan for the repayment of the debt, most creditors are prohibited from collecting their claims from the debtor during the course of the case. The debtor must make regular payments to a person called the Chapter 13 trustee, who collects the money paid by the debtor and disburses it to creditors in the manner called for in the plan. Upon completion of the payments called for in the plan, the debtor is released from liability for the remainder of his or her dischargeable debts.

I have been handling these types of cases for over 20 years. Though the new bankruptcy laws changed recently, you need not worry. I am well versed in the language of the new laws and can effectively explain how these changes may affect your ability to file for bankruptcy.

What is chapter 13 and how does it work?

Chapter 13 is that part (or chapter) of the Bankruptcy code under which a person may repay all or a portion of his or her debts under the supervision and protection of the bankruptcy court. The Bankruptcy Code is that portion of the federal laws that deal with bankruptcy. A person who files under chapter 13 is called a debtor. In a chapter 13 case, the debtor must submit to the court a plan for the repayment of all or a portion of his or her debts. The plan must be approved by the court to become effective. If the court approves the debtor's plan, most creditors will be prohibited from collecting their claims from the debtor during the course of the case. The debtor must make regular payments to a person called the chapter 13 trustee, who collects the money paid by the debtor and disburses it to creditors in the manner called for in the plan. Upon completion of the payments called for in the plan, the debtor is released from liability for the remainder of his or her dischargeable debts.

How does chapter 13 differ from chapter 7 for a debtor?

The basic difference between chapter 7 and chapter 13 is that under chapter 7 the debtor's nonexempt property (if any exists) is liquidated to pay as much as possible of the debtor's debts, while in most chapter 13 cases a portion of the debtor's future income is used to pay as much of the debtor's debts as is feasible considering the debtor's circumstances. As a practical matter, under chapter 7 the debtor loses all or most of his or her nonexempt property and receives a chapter 7 discharge, which releases the debtor from liability for most debts. Under chapter 7, the debtor usually retains his or her nonexempt property, must pay off as much of his or her debts as the court deems feasible, and receives a chapter 13 discharge, which is broader than a chapter 7 discharge and releases the debtor from liability for several types of debts that are not dischargeable under chapter 7. However, a chapter 13 cue normally lasts much longer than a chapter 7 case and is usually more expensive for the debtor.

When is chapter 13 preferable to chapter 7 for a debtor?

Chapter 13 is usually preferable for a person who:

  1. wishes to repay all or most of his or her unsecured debts and has the income with which to do so within a reasonable time,
  2. has valuable nonexempt property or has valuable exempt property securing debts, either of which would be lost in a chapter 7 case,
  3. is not eligible for a discharge under chapter 7,
  4. has one or more substantial debts that are dischargeable under chapter 13 but not under chapter 7, or
  5. has sufficient assets with which to repay most debts, but needs temporary relief from creditors in order to do so.

 

Contact me, Detroit Chapter 13 bankruptcy attorney Walter Metzen, today to schedule your free initial consultation. Flexible appointment times and same day appointments are available for your convenience.

Chapter 13 bankruptcy is different than Chapter 7 in several ways. Instead of debt being discharged completely,a person may repay all or a portion of his or her debts under the supervision and protection of the bankruptcy court. Click here for an explaination of Bankruptcy Terminology If you need help with Chapter 13 bankruptcy, trust your case, questions, and concerns to me, bankruptcy lawyer Walter Metzen.

Click here to learn about the GOAL of BANKRUPTCY

Under Chapter 13, if the court approves the debtor’s plan for the repayment of the debt, most creditors are prohibited from collecting their claims from the debtor during the course of the case. The debtor must make regular payments to a person called the Chapter 13 trustee, who collects the money paid by the debtor and disburses it to creditors in the manner called for in the plan. Upon completion of the payments called for in the plan, the debtor is released from liability for the remainder of his or her dischargeable debts. For more information, see my Chapter 13 Frequenty Asked Questions page.

I have been handling these types of cases for over 14 years. Though the new bankruptcy laws changed recently, you need not worry. I am well versed in the language of the new laws and can effectively explain how these changes may affect your ability to file for bankruptcy.

Contact me, Detroit Chapter 13 bankruptcy attorney Walter Metzen today to schedule your free initial consultation. Flexible appointment times and same day appointments are available for your convenience.

We are a Debt Relief Agency helping people file for bankruptcy relief under the Bankruptcy Code. Let us help you decide if bankruptcy is right for you.

Bankruptcy attorney Walter Metzen represents clients throughout Southeast Michigan, including the communities of Detroit, Southfield, Warren, Roseville, Farmington Hills, Ann Arbor, Belleville, Canton, Clinton Township, Dearborn, Dearborn Heights, Hamtramck, Highland Park, Holland, Howell, Lincoln Park, Livonia, Macomb, Northville, Plymouth, Port Huron, Redford, Rochester, Saginaw, Southfield, Sterling Heights, Taylor, Trenton, Troy, Westland, Wyandotte, Ypsilanti, Mount Clemens, Howell, Oakland County, Macomb County, Wayne County, Washtenaw County, Livingston County, and all of the surrounding areas.

Detroit Bankruptcy Law Office of Walter Metzen & Associates
645 Griswold, Suite 3156
Penobscot Building
Detroit MI 48226
Map & Directions

Phone:313-962-4656
Fax:313-962-4241
Email: 8884walter@sbcglobal.net

 

Royal Oak Bankruptcy Law Office of Walter Metzen & Associates
30448 Woodward Avenue
Royal Oak MI 48073

Map & Directions

Phone:248-549-3333
Fax:313-962-4241
Email: 8884walter@sbcglobal.net

 

Board Certified Specialist, American Board of Certification