The bankruptcy code is complex and the attorneys at Tomak, Podolsky and Hultink are here to help you understand your rights and protect your property. By sitting down with an experienced attorney, you can decide if bankruptcy is the right option for you, and which type of bankruptcy will allow you to get the relief you need. Our office handles Chapter 7 and Chapter 13 cases.
Chapter 7 Bankruptcy is the most common form of bankruptcy which allows individuals to get a fresh start by discharging (or eliminating) unsecured debt. Chapter 7 allows individuals to keep their property while removing burdensome obligations.
Chapter 7 eliminates:
- Credit Card debts
- Medical debts
- Personal loan debts
- Lawsuit debts
- Judgments – Unless fraud or criminal related
- Deficiency debts on repossessed autos and foreclosures
- Personal Injury Debts – except driving while intoxicated and criminal injury.
- Certain other exceptions may apply.
Chapter 7 Bankruptcy will discharge any unsecured debt unless the code explicitly provides that the debt is not dischargeable. These non-dischargeable debts include: student loans, child and spousal support, and certain taxes and fines.
Chapter 13 Bankruptcy is a form of bankruptcy which allows individuals to get a fresh start by paying off some of their outstanding debts. Chapter 13 allows individuals to keep their property and repay debts according to a court-approved plan.
The most common circumstances under which a person files for Chapter 13 are:
- A person wants to save their home from foreclosure and catch up on their payments.
- A person is behind on a car note or lease and the vehicle is in danger of being repossessed.
- A person has valuable nonexempt property which would be lost in a Chapter 7 bankruptcy filing.
- A person has sufficient income with which to repay most debts, but needs temporary relief from creditors in order to do so
- A person has a tax obligation, student loan or other debt that is non-dischargeable in a Chapter 7 bankruptcy.
- A person is not eligible for a Chapter 7 discharge in Michigan.