Bankruptcy

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. We look at your individual circumstances to determine whether bankruptcy is appropriate and which chapter of bankruptcy might work best for you.

Is your house in foreclosure or are you behind in your mortgage payments?
Are you having a hard time paying off your debts?
Do you want your debts consolidated?
Do you want your debts discharged?
Are you wondering how you are going to feed, clothe and shelter your family?

Bankruptcy is an opportunity to start over. Our bankruptcy lawyers help you do that.

Do you have more debt than you think you can pay back? Do you need advice regarding a Michigan Chapter 7 Bankruptcy? If you are looking for a bankruptcy attorney, Edward A. Bajoka and his team have the experience you need.

After listening to your story and reviewing your financial information, our law firm will advise you an what type of bankruptcy, if any, may be best for your family. Filing for a Michigan Chapter 7 Bankruptcy generally results in the discharge of debts. Filing for a Michigan Chapter 13 Bankruptcy generally results in a reorganization and structured payment of your debts.

What is a Michigan Chapter 7 Bankruptcy?

Debts Discharged: With a Michigan Chapter 7 Bankruptcy, most debts are discharged if the creditor (party to whom the debt is owed) is listed on your Chapter 7 Bankruptcy Petition. If you do not list a creditor on the petition, any debts to that creditor will not be discharged. You must also list creditors whose debts are not discharged and creditors whose debts you intend to pay (see below).
Debts Not Discharged: Some debts may not be discharged. Examples of debts that are not discharged are child support, student loans under most circumstances, certain taxes, etc. If you retain our law firm, we will review your financial information and determine what debts cannot be discharged.
Exempt Property: The bankruptcy laws allow you to "exempt" some of your property. This means that you will be able to keep some of your property and not use it to pay off debts. Our bankruptcy attorneys will review the property you have listed on the schedules and determine the proper exemptions. The following are examples of typical Chapter 7 Bankruptcy exemptions:

Approximately $30,000.00 under Michigan bankruptcy law for equity in a home
Approximately $9,000.00 in household goods under Federal bankruptcy law
Approximately $9,000.00 in cash under Federal exemption in certain cases.

Debts You May Want to Continue to Pay (Mortgage, Car Loan and Loan on Household Items): You may keep your house, vehicle and certain financed household items as long as you continue to keep the payments current and sign a reaffirmation agreement provided by the creditor. Certain creditors, especially for vehicles, may stop sending a statement after the case is filed, and if you want to keep this property you must maintain the payments. Reaffirmation agreements are only valid if filed with the court. Reaffirmation agreements can be cancelled at anytime prior to discharge or within 60 days of filing the agreement. Cancellation of a reaffirmation agreement should be done in writing and filed with the court. The effect of reaffirming a debt makes you liable for the debt after the bankruptcy is closed and allows a creditor to sue you on the debt if it becomes delinquent. If a reaffirmation agreement is not entered into for a vehicle or other property, the creditor may repossess the vehicle or property within 45 days after the first meeting.
Joint Obligation for Debt: If you have a joint obligation with a spouse or co-signer, he or she will still be responsible for that debt unless he or she also files for bankruptcy.
Michigan Chapter 7 Bankruptcy and Your Credit: The bankruptcy will be reported on your credit for 10 years from the date that you file. Your credit history will still appear on the credit report; however, the creditors have no legal right to collect unless the debt is non-dischargeable. You can usually purchase a vehicle after the discharge; however, the interest rate will generally be very high. You may be able to obtain a mortgage or refinance a house usually 1 to 2 years from the date of filing.

What is a Michigan Chapter 13 Bankruptcy?

Chapter 13 is a type of bankruptcy designed to consolidate bills and repay creditors. Under Chapter 13, a person makes regular payments to a Trustee assigned by the Court. These payments are generally made through a wage assignment if the person is employed. The following is an overview of Chapter 13 bankruptcy law:

Filing of Chapter 13 Bankruptcy Petition in Michigan: After you have retained our Michigan bankruptcy law firm, we will prepare your Chapter 13 bankruptcy petition. In preparing a petition for a Michigan Chapter 13 bankruptcy, it is important to list all debts owed, even if the payments are current. If you do not list a debt, it will not be consolidated.
Utility Bills: If you owe money for utilities (electricity, gas, water, garbage, etc.), you may also include your debts utility bills on the petition, and your services will not be terminated. You may, however, have to pay a deposit equal to 1 ½ times the highest monthly bill. You must also pay your future utility bills yourself. If your utility bills are current, it is not necessary to list them.
Foreclosure and Repossession: Often times, clients seeking a Michigan Chapter 13 bankruptcy are at risk of losing their homes due to foreclosure. If your house is in foreclosure or at risk of foreclosure, it is important that you schedule an appointment with one of our attorneys as soon as possible. Your Chapter 13 bankruptcy petition must be filed before a sheriff's sale, or you will not be able to reinstate your mortgage.
Repayment Plan: When you come to our office to sign your petition, one of our Michigan bankruptcy attorneys will prepare your repayment plan. Your assistance is required to determine the payments, which will be made over a period of 3 to 5 years, depending upon your income and expenses. Payments to Bankruptcy Trustee: After we file your petition, the Bankruptcy Court will assign your case to a Bankruptcy Trustee. As soon as you are notified of the Bankruptcy Trustee assigned to your case, you should start making payments to that Bankruptcy Trustee. Most cases are dismissed because of the Debtor's failure to start promptly making payments to the Trustee. Although most cases have wage assignments, these do not take affect immediately. Do not wait for the wage assignment to take effect to start making your payments. You should keep a record of all your payments.
Incurring Debt: After filing for Chapter 13 bankruptcy in Michigan, you may not incur additional debt over $1,000.00 without court approval. If you seek to incur a debt to purchase a vehicle or repair a home, you should bring a copy of the proposed purchase agreement to the attorney to present to the court. If you obtain new debts after you file such utility bills etc., you may have to dismiss your case and re-file to include these debts in a new Chapter 13 repayment plan.
Creditor Contact: After your case is filed, the Court will send a notice of First Meeting of Creditors to you, your creditors, and to our office. Your creditors will stop calling you after they receive this notice. If they continue to call, explain to them that you filed bankruptcy and give them your case number and the date you filed.
Meeting of Creditors: The First Meeting hearing lasts approximately 5 minutes, and you should appear well before the hearing because you must complete paperwork at the court. The second hearing usually occurs approximately a month after your first meeting and generally lasts much longer
Creditor Objections: After your case is filed, you may receive objections from your creditors; we will also receive copies of these objections. Our office will address these objections. She/he may contact you to obtain information necessary to resolve the objection or request that you make an appointment with our office to change your schedules.
Forwarding of Federal Tax Refunds to Trustee: Most cases require that you send 100% percent of your Federal Tax refunds to the Trustee. The IRS will not send this to the Trustee. It is your obligation to forward the refund to the Trustee. Failure to forward the refund to the Trustee will result in your failure to complete the case and obtain a discharge.
Filing of Tax Returns: In a Chapter 13, you must file your tax returns timely every year and provide a copy to our office.
Update of Income and Expenses: After you file your tax returns, you must update your current income and expenses. This needs to be done annually, no later than 45 days before the anniversary date of the plan confirmation.
Refinancing Your Home: If you have a home you may consider refinancing your mortgage at some point. This is usually at least 18 months after you have filed your case. You must obtain court authorization to refinance, and you should schedule an appointment with our office to review the procedure.
Statements from Trustee: The Trustee will send you semi-annual statements regarding your progress in the case. You should contact the office if you are unable to make payments. We understand that this is a difficult time for you and we will help to make the process run as smoothly as possible.
Completing Your Plan: Your Michigan Chapter 13 bankruptcy plan must be completed within the time proposed for your case. The plan will start running from the date your case is confirmed. No plan can extend more than 60 months after the confirmation date.

Bankruptcy

Office Locations

Troy Office Click here for map
3150 Livernois, Suite 235
Troy, MI 48083
Phone: (248) 740-8384
Fax: (248) 740-8548

Detroit Office Click here for map
400 Monroe St, Ste 280
Detroit, MI 48226
Phone: (313) 962-0000
Fax: (313) 962-0766