FAQ
Deciding Whether to File
How do I know if bankruptcy is right for me?
A rough test: if you could not pay off your unsecured debts within three to five years even with serious budgeting, bankruptcy deserves a real look. If your debt is temporary, recently incurred, or small relative to your income, other tools may serve you better. At the consultation we run your actual numbers and tell you honestly which side of that line you are on.
Is bankruptcy my only option?
No, and we will say so when it is the wrong tool. Negotiated settlements, mortgage loan modifications, and in some cases simply the passage of time under Michigan's statute of limitations can resolve debt without a filing. The consultation is about finding the right answer, not selling a bankruptcy.
What is the difference between Chapter 7 and Chapter 13?
Chapter 7 eliminates qualifying unsecured debts like credit cards and medical bills, usually within four to six months, and is generally for people whose income is at or below the area median or who pass the means test. Chapter 13 is a three-to-five-year repayment plan that lets you catch up on secured debts like a mortgage or car loan while keeping the property. Broadly, Chapter 7 is about erasing debt and Chapter 13 is about restructuring it.
What is Chapter 11, and is it only for big companies?
Chapter 11 is reorganization, most often used by businesses that want to keep operating while restructuring what they owe. It is more complex and more expensive than Chapter 13, but for a small business or an individual whose debts exceed Chapter 13 limits, it can be the right path.
Will filing stop a foreclosure on my home?
Filing triggers the automatic stay, a federal court order that immediately halts foreclosure proceedings, including a scheduled sheriff's sale. A Chapter 13 plan can then give you years to catch up on missed mortgage payments. Timing matters enormously here; the closer the sale date, the fewer options remain, so call before the deadline rather than after.
The Process
How fast do collection calls and garnishments stop?
The day the case is filed. The automatic stay takes effect immediately and applies to collection calls, lawsuits, wage garnishments, repossessions, and foreclosure actions. Creditors who ignore it face consequences from the court.
What do I need to do before filing?
Federal law requires a credit counseling course from an approved provider within 180 days before filing; it is inexpensive and can be completed online in about an hour. You will also gather documents with us: pay stubs, tax returns, and a list of debts and property. We handle the rest.
How long does the whole thing take?
A typical Chapter 7 runs four to six months from filing to discharge. A Chapter 13 plan runs three to five years, though the protections begin the day you file. Chapter 11 timelines vary with the complexity of the reorganization.
Does my spouse have to file with me?
No. Spouses can file together or one can file alone, and which is better depends on whose name the debts are in and how your property is held. This is a fact-specific call we make together at the consultation.
What does it cost, and do you offer payment plans?
Legal fees depend on your situation. A Chapter 7 and a Chapter 13 are different cases with different work behind them, and I cannot responsibly quote a number before I understand which one you are looking at and what you are dealing with. What I can tell you is that I evaluate every case individually and I will give you a straight answer about cost once I do. Payment plans are available. You do not need the full amount up front. When we meet, I will lay out what the fee is and what a monthly payment looks like for your circumstances, and we will work out something you can actually manage. The consultation is where that conversation starts. Call and we will talk through it.