Perrone Law, P.C
Get the Representation You Deserve
221 W. Lake Lansing
East Lansing, MI 48823
Phone: (517) 351-0332
Fax: (517) 913-6287
Lansing Michigan Bankrutpcy Attorney
If you retain a bankruptcy attorney most creditors must contact your bankruptcy attorney and must cease calling you. Collection agencies cannot contact you but a creditor that holds the original debt would still be able to call you. It is essential to have a bankruptcy attorney that has knowledge and experience dealing with personal financial matters before you file and after you are discharged. Sometimes filing for bankruptcy is not in your best interest. It should always be used as a last resort. You should exercise other options before filing for a bankruptcy. Negotiating with creditors sometimes is an ideal strategy to dealing with personal financial troubles. If negotiating with creditors, then there are tax implications that often need to be addressed. If it is imperative that you file for bankruptcy to stop a garnishment or if you have debts that are too onerous to be paid it is necessary to have an attorney who can maximize your exemptions and who knows how the means test works. Jacob A. Perrone has the knowledge of bankruptcy law and experience dealing with the bankruptcy courts to allow you to obtain a "Fresh Start".
Chapter 7 Bankruptcy allows a debtor to discharge debt. To qualify for a Chapter 7 a debtor's income must be below the median income for their state or they must pass a "means test" that uses IRS guidelines for expenses and compares this to the debtors income from 6 months prior to filing bankruptcy to determine if they have enough disposable income to pay creditors over a 60 month period. If you qualify for a Chapter 7 your are entitled to exempt certain property from being distributed to creditors through the Bankruptcy estate such as your home, household furnishing, and vehicle. You are normally discharged within 60 to 90 days after filing for Bankruptcy. If you have very bad credit lenders will be more willing to give you a loan after your debts are discharged through bankruptcy although you will not be able to obtain a favorable interest rate. Call for a free consultation to determine if you qualify for a Chapter 7 discharge.
Chapter 13 is a personal reorganization of debts. The debtor pays his or her disposable income, which is figured by guidelines provided by the IRS and bankruptcy court, to the Bankruptcy Trustee over a 3 or 5 year period to pay creditors. After the plan has been completed the debtor receives a discharge of the remaining debt that is left after the plan has been completed. You can stop the foreclosure of your home if you file before the property is sold at a sheriff?s sale and keep your home if you propose a plan to pay the past due balances on your mortgage through your reorganization plan. Regular payments must resume after the Bankruptcy is filed but your lender is required to accept the payments. If plan payments are completed according to the terms of the plan then you receive a discharge of any remaining amounts owing. If you have a second mortgage there is an opportunity to dishcarge what is owed on a second mortgage. The Court looks at the value of your house versus the amount still owed on the first mortgage. If your home is worth more than what is owed on your first mortgage, then you may be able to strip the amount of the second mortgage that is more than the value of the property
Creditors are often willing to negotiate your debt. Sometimes you can settle a credit card account in full by paying 50% of the amount owed by offering a one-time lump sum payment to the creditor. A Creditor will generally also negotiate payment plans over time but they are often less willing to negotiate on the total amount. Your individual situation often determines the likelihood of a good settlement.
If your home is in foreclosure you are entitled to stay in the home for a redemption period that is set by statute depending on your particular situation. Generally you are given six (6) months after the sheriff's sale to "redeem" the property.
Home Loan Modification
Under President Obama's Financial Stability Plan there is help through the Home Loan Modification Program and various other programs to modify the terms of principal and interest on your existing mortgages. You have to meet eligibility criteria regarding your income and financial circumstances to qualify for help. Currently, to qualify for help under the Home Loan Modification Program your home loan payment has to be 31% of your gross income.