Find a Bankruptcy Lawyer in Detroit, Michigan

Find the right Bankruptcy attorney in Detroit, MI

In Detroit, Michigan, bankruptcy is a legal proceeding in which a person or business has some or all of their debts legally cleared, when they are unable to pay them. This hopefully allows them to begin over with a clean slate and move on, after having learned to better manage their use of credit in the process. However, bankruptcy should not be treated as a way to avoid debt that one simply doesn't feel like paying. It is meant to be a safety net for people or businesses who are really unable to pay off their debts. Because bankruptcy is not without negative consequences (such as a heavily damaged credit rating for many years afterward), it should be viewed as an option of last resort.

Accordingly, it might be a good idea to consult with a Detroit, Michigan bankruptcy attorney. Your lawyer will be able to counsel you about your options, including alternatives to bankruptcy, if such alternatives exist in your case. Whatever the result, it is often challenging to anticipate the long-term consequences of any bankruptcy-related decisions, so the advice of a bankruptcy in Detroit could prove invaluable.

Types of Bankruptcy in Detroit, Michigan

In Detroit, Michigan, there are three basic bankruptcy schemes that are most frequently used. They are identified as Chapter 7, Chapter 13, and Chapter 11. Being a product of federal law, the procedural rules governing bankruptcy in Detroit, Michigan will be very similar to those in any other part of the United States. Chapter 7 bankruptcy requires the debtor to liquidate some of his or her assets in order to pay off as much debt as possible. Once the sale of the assets is verified, and the proceeds handed over to the creditors, the debt is perceived as discharged. Liquidation is basically selling assets to the highest bidder. Not all of the debtor's assets will need to be sold, and many types of property are entirely or partially exempt, including homes, cars, retirement accounts, and insurance policies. This means that the debtor can keep them. It should be noted that some types of debts are not dischargeable in Chapter 7 bankruptcy, including student loans, criminal fines, taxes, and child support payments. Even when the bankruptcy process is complete, these debts will have to be paid in full.

The other typically used bankruptcy system in Detroit is Chapter 13 bankruptcy. This allows a debtor to repay most or all of their debts in a structured manner. It reorganizes the debt into lower periodic payments that, with a bit of frugality, the debtor should find manageable. This allows the debtor to continue to earn a living, and allows the creditors to eventually collect what they are owed. Once a repayment plan is authorized by the bankruptcy court, creditors are legally barred from seeking repayment under the terms of the arrangements that gave rise to the debt in the first place, and will instead have to accept payment under the new plan. Chapter 13 bankruptcy is typically a better option for people who have a steady income. Chapter 11 bankruptcy is generally used by businesses, though it can be used by individuals (which is quite rare). Chapter 11 bankruptcy requires that the debtor come up with a reorganization plan - typically telling the court how they propose to cut costs, streamline their operations, and pay their debts. This plan must be authorized by the participating creditors through a simple majority vote.

A major advantage of Chapter 11 bankruptcy is that businesses can continue their operating while going through the process. Also, they can continue to buy and sell their stock.

How Can a Detroit Bankruptcy Lawyer Help?

Filing for bankrtuptcy in Detroit is a influential decision with costs and benefits that must be weighed carefully. Before filing, it would be a good idea to speak with a seasoned Detroit bankruptcy attorney.

Talk to a Bankruptcy & Finances Law Attorney now!

Life in Detroit

Detroit, Michigan has more attractions for tourists than people would think.

Popular attractions include the Detroit Institute of Arts, Motown Historical Museum, Comerica Park, and Guardian Building. A popular attraction celebrating African Americans is the Charles H. Wright Museum of African American History.

For some family fun, Fox Theater Building, Ford Field, the GM Renaissance Centre, Ste. Anne de Detroit Church, Detroit River Front, and Fisher Mansion. For some fine dining and a great night out in town, downtown Detroit is a very happening spot.

Detroit is filled with many more attractions. The city entertains a population of approximately 713, 777 people. Therefore, Detroit is also filled with a prosperous legal industry. Detroit, Michigan is home to many small to mid-size law firms that practice in all areas of law. Therefore, Detroit residents do not need to look outside the largest city in Michigan in order to tend to their legal needs.

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