The decision to file for bankruptcy relief is not easy and can be complicated and frustrating. Whether you are an individual, business, or creditor, the attorneys at Klug Law Firm are experienced in bankruptcy law, and will make sure that you are fully informed of all of your options prior to any filing.
Chapter 7 (Liquidation)
The filing for bankruptcy is a hard and personal decision. The Klug Law Firm will properly inform individuals and business whether or not the filing of bankruptcy is right for them when they cannot pay their bills, or they anticipate that they will not be able to pay their bills in the future. The filing of a Chapter 7 bankruptcy entitles individuals and businesses to make a fresh start under Federal Law. Chapter 7 bankruptcy eliminates most unsecured debt and is recommended for individuals and businesses with few or no assets. Unsecured debts discharged in Chapter 7 bankruptcies include credit card debts, medical bills, most personal loans, and most judgments. In addition to eliminating your debt, the filing of Chapter 7 bankruptcy in most situations allows a debtor to retain their car, home, and other personal belongings. Retaining the services of our attorneys will also protect you from the harassment of credit agencies. Chapter 7 bankruptcies can be complicated, and our attorneys are experienced and knowledgeable to guide you through every step of the legal process.
Chapter 13 and 11 (Reorganization)
The filing of a Chapter 13 bankruptcy allows individuals and businesses to keep their property and pay off their debts over time, usually three to five years. In order to be eligible for Chapter 13, an individual or business must have unsecured debts (i.e. credit cards) of less than $360,475, and secured debts (i.e. mortgages and car loans) of less than $1,081,400 on the date of the filing of the Chapter 13 petition. If an individual or business has debts greater than what was previously stated, then the individual or business will have to file a Chapter 11 bankruptcy. The filing of a Chapter 13 bankruptcy allows the debtor to prepare a plan based off of the debtor’s income, expenditure, assets and liabilities in order to pay off the debts over time. In addition, and perhaps most importantly, the filing of Chapter 13 allows the debtor an opportunity to save their home from foreclosure, as long as the debtor can make all the payments during the Chapter 13 Plan. Retaining the services of our attorneys will also protect you from the harassment of credit agencies. Chapter 11 and 13 bankruptcies can be complicated, and our attorneys are experienced and knowledgeable to guide you through every step of the legal process.
Creditors’ Rights in Bankruptcy
When a borrower files for bankruptcy relief, it is important for creditors to fully understand its legal rights. Once a debtor’s bankruptcy is discharged by the Bankruptcy Court, a creditor’s unsecured debt is discharged forever. We ensure that our clients’ secured interest is adequately protected in Chapter 7 liquidations, and Chapter 11 and 13 reorganizations. We provide our clients with a wide range of bankruptcy relief such as relief from automatic stay, non-dischargeability of debt, lien retention, assert priority status over other creditors, adequate protection, and Chapter 11 or 13 plan confirmation. When necessary, our experienced attorneys will file adversary proceedings against debtors, when our client’s secured assets have been embezzled, converted, and transferred to ensure that our client’s debt is non-dischargeable.
In Lansing and central Michigan, contact the Klug Law Firm for quality, professional assistance in areas of bankruptcy law.