Detroit Michigan Chapter 7 Bankruptcy Lawyers

Chapter 7 Bankruptcy Help in the
Detroit Area and Southeast Michigan

Also known as “straight bankruptcy” or “debt liquidation” — generally the Chapter 7 bankruptcy process offers the most complete form of debt relief to individuals and businesses struggling under the crushing weight of too much debt.

At Resnick Law, P.C., we can help. To schedule an initial consultation with one of our lawyers — call us at 248-642-5400 or contact our firm online.

Don’t cash in your retirement savings. If bankruptcy is the best solution for you, those retirement accounts cannot be touched by your creditors. Don’t put everything you’ve worked so hard for at risk by pursuing a short-term fix that does nothing to address underlying issues. Talk to an experienced bankruptcy attorney first.

If you are eligible for Chapter 7 bankruptcy, the discharge will eliminate most types of unsecured debt, including credit card balances, medical bills and other obligations not attached to real property. It can also put an immediate end to creditor harassment, stop IRS penalties and interest from continuing to mount and stall home foreclosure proceedings, at least temporarily. Last, the vast majority of people who file for Chapter 7 bankruptcy protection are able to keep most, if not all of their personal possessions.

Having said all of that, filing a Chapter 7 bankruptcy will not fix every problem.

• It will not eliminate all debt. Recent tax debts (less than three years old), alimony, child support, drunk driving debts, personal injury judgments, court fines, restitution and student loans (except in rare circumstances) — cannot be discharged in a Chapter 7.
• It will damage your credit. It won’t destroy it. In fact, you might be surprised by how quickly you start receiving credit offers after the discharge. An excellent way to start rebuilding your credit immediately is to apply for a secured credit card where you can make automatic payments and control your credit limit.
• It will not allow you to keep your home or car unless you can immediately make good on any past due amounts and you are willing to enter into a reaffirmation agreement with your lender.

If you are not eligible to file under Chapter 7, have non-exempt assets or property that you want to keep or are uncomfortable with the idea of not paying off at least a portion of the debt you owe — you may want to consider reorganizing your debts under Chapter 13. Our attorneys can also explain and help you explore non-bankruptcy solutions such as debt settlement or creditor workouts.

To learn more about our practice — call our contact our Bloomfield Hills law office directly.