The Chapter 13 Bankruptcy Option for Debt Relief

Not everyone who is buried debt has a low income. In fact, many people at high income levels find themselves buried in debt that they simple cannot pay. What happens if you can't pay your debts, but your income is too high to qualify for Chapter 7 bankruptcy?

Chapter 13 bankruptcy is the perfect option for people facing insurmountable debt but are in too high of an income bracket to qualify for Chapter 7. At The Smith Law Offices, P.C., you will find a Westland Chapter 13 lawyer with a thorough understanding of bankruptcy law and a firm commitment to helping you obtain financial freedom.

Helping You Understand How Chapter 13 Works

Most people apply for Chapter 7 bankruptcy, because it is the most direct and time-efficient form of bankruptcy. To qualify for Chapter 7, however, you must pass the "means test," which tests whether you should have the financial means to pay your existing debt. If you do not pass the means test, you will not qualify for Chapter 7.

You will still have the option of declaring Chapter 13 bankruptcy, which is a repayment plan. The court will determine the amount that you can pay each month for your debts, and establish a monthly payment amount based on that figure. This repayment options lasts either three or five years, after which time, the remainder of your debt will be discharged. This is a great opportunity to gain control of insurmountable debt even if your income is too high to qualify you for Chapter 7 bankruptcy.

"I have helped many people find debt relief through Chapter 13 bankruptcy. If there is one thing I have learned, it's that insurmountable debt can hit anyone. People from all walks of life come to me for bankruptcy solutions. I will not judge you; I am here to help you." | Samantha Smith, attorney at law

Lien-Stripping | Eliminating Second Mortgages

Another important benefit of Chapter 13 bankruptcy is that it could allow you to strip your second mortgage. If your home is upside down (it is worth less than what you owe on the primary mortgage), it is possible to strip off a second or subsequent mortgage. Since the first mortgage is worth more than the entire house, there is nothing of value for the second mortgage to attach to. This could be a great way to stop foreclosure and help you get back on your feet.

Arrange For a Free Initial Consultations

We believe in face-to-face representation. Come in to our office and meet one of our lawyers to discuss your case, free of charge. Call our Michigan law firm office at 734-403-4189 or toll-free at 888-807-5629, or contact us online to schedule your free initial consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.