With a Chapter 13 bankruptcy, rather than using a person’s assets to offset their debts, the claimant agrees to follow a repayment plan that allows them to slowly pay off a portion of their current and past-due debts over the course of (typically) three to five years – forgiving the rest when time is up so long as the person was able to keep up with scheduled payments. Chapter 13 bankruptcy is especially popular because it allows people to keep the property and assets that would have otherwise needed to be surrendered for other types of bankruptcy, which is ideal for homeowners at serious risk of losing their home, or anyone else who feels like they can get caught up if they can just get the time. In fact, most people actually prefer to file for Chapter 13 bankruptcy because although it means you do still have to pay your debts back, if you can, you don’t have to give up anything you love – and a Chapter 13 bankruptcy will fall off your credit report in only seven years!
Of course, as with any type of bankruptcy, there are certain things one has to know about filing for Chapter 13 before any actual steps are taken. For instance, in order to qualify for Chapter 13 bankruptcy, a person’s income must exceed the state’s officially listed median income, which in Michigan for 2020 is over $90,000 for a family of four. In order to determine eligibility for this, those with higher incomes are required to complete and submit “means tests” to help clarify all income and expense information. In fact, the entire process to file for a Chapter 13 bankruptcy is actually quite complex, which is why having trained, reputable bankruptcy attorneys to guide you through it is so imperative.
Lucky for you, our capable bankruptcy attorneys at Harris Law have decades of collective experience and innumerable resources at their disposal to help you secure a better, more financially stable future. Simply reach out and tell us why you think filing for Chapter 13 bankruptcy is the right course of action for you, and we will do everything in our power to help you through it without losing sight of what’s most important: your best interests!