Facts And Myths About Chapter 7 And Chapter 13

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Learn More About All Of Your Bankruptcy Options

At The Smith Law Offices, P.C., we bring focused bankruptcy representation to individuals throughout southeast Michigan. We place a premium on your success, always meeting with you face-to-face so that we can get to know you and learn the details of your situation. We keep our practice small so that we can devote more attention to the needs of each client. Because of our reputation for knowledgeable counsel and for cost-effective representation, many of our new clients come to us as referrals from former or current clients.

Facts And Myths About Chapter 7 And Chapter 13 Bankruptcy

In today’s information age, there is no shortage of myths about your rights and obligations in a bankruptcy filing. Here are some of the facts:

  • A bankruptcy filing will stop creditor harassment – When you file a Chapter 7 or Chapter 13 petition, an automatic stay goes into effect immediately, prohibiting your creditors from calling, writing or taking legal action (outside of the bankruptcy proceeding) to collect a debt.
  • Some debts can be permanently discharged in bankruptcy – In a Chapter 7 proceeding, you can generally rid yourself of certain unsecured debts permanently, with some exceptions such as certain tax obligations, child support payments and student loans.
  • You may keep some of your property in a Chapter 7 proceeding – Each state has different rules, but you can generally keep up to a certain value in homes, cars and personal property.
  • A bankruptcy proceeding can suspend foreclosure or garnishment proceedings – Though you cannot extinguish the debt on secured property and keep the property, the automatic stay applies to all creditors.

Now, we will address some of the myths of bankruptcy:

  • Your credit will not be ruined forever – While bankruptcy will have a short-term impact on your credit, potential lenders are more interested in what you do after you file for bankruptcy. If you keep your financial record clean, you can find yourself eligible for credit cards, auto loans and even mortgages within a couple years.
  • You cannot be fired from your job for filing for bankruptcy protection – Federal law prohibits this.

Contact The Smith Law Offices, P.C.

We provide a free initial consultation with our lawyers to every client. To set up a private meeting with an experienced and knowledgeable Westland bankruptcy attorney, contact us online or call our offices at 734-729-4465.

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

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