BANKRUPTCY IS .....

... a legal procedure that immediately stops almost all legal actions against you. Moreover, it allows you to get a fresh start financially, keep all or some of your property and provide equal treatment to your creditors. There are four basic types of bankruptcy:

Chapter 7 is where you are asking the court to discharge (wipe out) your debts. Some debts, like child support, certain taxes and debts incurred through fraud, cannot be discharged. You may keep whatever property you can protect under the law; otherwise, it will be sold and the money given to creditors.

Chapter 11 is primarily utilized by businesses which want to reorganize while under the protection of the bankruptcy court.

Chapter 12 is for a family farmer whose income is dependent on what he/she produces on the farm.

Chapter 13 is for the individual or small business person who wants to pay all or part of their debts with a re-payment plan. You pay the standing chapter 13 trustee who is then responsible for paying your creditors. People often file a chapter 13 to save a home from foreclosure or a car from being repossessed.

.... FOR ME, NOW WHAT?

Consult an attorney now!

Often, the bankruptcy case must be filed before the legal action against you takes place. For instance, if your home is to be sold at a sheriff's sale, the bankruptcy must be filed before the date and time set for the sale.

In order to properly advise, counsel and represent you, the attorney needs to know all about what you owe and what you own. Therefore, gather up any and all paper work regarding your assets and liabilities and bring it to your initial consultation. It is better to bring too much with you than too little.

Save your money.

You must pay a filing fee to the bankruptcy court: (Eastern District of Michigan)

  • Chapter 7 $299.00
  • Chapter 11 $1,030.00
  • Chapter 13 $274.00

You must also pay your attorney a legal fee unless you are a low income person and obtain help from your local legal aid program.

You may have to pay new security deposits for any utilities listed in your bankruptcy or begin making regular payments to the trustee in a repayment plan.

Attorney Leon A. Gant

Licensed to practice in the state of Michigan
Tel: (313) 964-9900 ; Fax: (313) 964-0799
65 Cadillac Square, Suite 2100, Detroit, MI 48226

e-mail: lagant2@yahoo.com

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