the smart law group
bankruptcy
Bankruptcy is a Fresh start
Filing for bankruptcy is the first step to creating the life that you want for your future.
Bankruptcy can be just as difficult and traumatic event as divorce, but like divorce it CAN be the beginning of a new chapter for you, your finances and even your business.
The important thing is to get a SMART Bankruptcy – one that protects as much of your assets as possible, is as painless as possible, and clears the debris field of debt out of your way so you can move forward.
Knowing what your rights and options are during bankruptcy is vitally important. Even a straightforward bankruptcy involves a wide range of legal concerns that must be properly addressed and documented to get to the best result.
No matter what, every bankruptcy case requires smart decisions to be made in your best interest to protect you and your future. This is why we do what we do at The Smart Law Group.
What Does a Bankruptcy Attorney DO?
A good bankruptcy attorney is someone who protects your assets during the process. So you can retain what you need to not just to recover from your current situation, but to set the stage for what’s next!
Our sole focus is to fight for your best interests whether Chapter 7, Chapter 13 filing, loan mitigation, debt negotiations or any part of this financial reset.
Your Smart Law Group attorney will handle all aspects of your bankruptcy case, from initial consultation through court proceedings, if necessary.
Your Smart Law Group bankruptcy attorney will work to get you the best resolution and settlement possible through negotiations or mediation.
What Happens During a Bankruptcy?
Whether you’re filing for bankruptcy in Farmington Hills, Livonia or anywhere in Wayne County and beyond, the process is the same. And it’s important to know what the steps are:
Evaluating Financial Situation: Assessing the client’s financial status and determining the best bankruptcy option (e.g., Chapter 7 or Chapter 13).
Representation: Representing the client during court proceedings and negotiations with creditors.
Legal Advice: Offering advice on debt relief options, asset protection, and the potential impact of bankruptcy on the client’s financial future.
Compliance: Ensuring all legal requirements and deadlines are met throughout the bankruptcy process.
Plan Development: Developing and submitting repayment plans for Chapter 13 bankruptcy cases.
Evaluating Financial Situation: Assessing the client’s financial status and determining the best bankruptcy option (e.g., Chapter 7 or Chapter 13).
Evaluating Financial Situation: Assessing the client’s financial status and determining the best bankruptcy option (e.g., Chapter 7 or Chapter 13).
Filing Petitions: Preparing and filing necessary legal documents and petitions with the bankruptcy court.
Representation: Representing the client during court proceedings and negotiations with creditors.
Legal Advice: Offering advice on debt relief options, asset protection, and the potential impact of bankruptcy on the client’s financial future.
Compliance: Ensuring all legal requirements and deadlines are met throughout the bankruptcy process.
Plan Development: Developing and submitting repayment plans for Chapter 13 bankruptcy cases.
Steps to Your Financial Future
Step 1: The process starts with a consultation with a Smart Law Attorney
It’s important you contact a bankruptcy lawyer before you file any paperwork, and preferably before you make any more payments or accept any phone calls from creditors.
We’ll help you decide which type of bankruptcy is appropriate (Chapter 7 or Chapter 13) and make sure that you completely understand you options. We’ll confirm your elligibility and discuss next steps.
This first step ensures that the next step we take is for your benefit in the short and long term. The Smart Law team is very experienced in all facets of bankruptcy-related law in Michigan and will help make sure we protect as much of your assets as possible.
This is especially important if you are considering or in divorce proceedings or are a small business owner – and we are uniquely qualified to help in these areas.
Step 2: Gathering Documentation and Information
Think of this as a discovery process. We’ll help you collect all of the actual documentation related to your debt to help determine what can be included in the filing and what assets can be excluded.
This information gathering will include things like:
- Income documentation
- Tax returns and employment records
- Asset information, including real estate, financial accounts, pension/retirement accounts, and vehicles, including the values
- Company debt information[if applicable]
- Personal Debt information, including mortgages, loans, and credit cards, including the balances
Step 3: Negotiation and Settlement
During the negotiation and settlement phase of a bankruptcy, the appointed bankruptcy trustee works with the debtor and creditors to resolve outstanding debts.
In Chapter 13 bankruptcy, this involves developing a repayment plan where the debtor proposes a schedule for repaying a portion of their debts over a three to five-year period.
Creditors have the opportunity to review and object to the plan, and the trustee may negotiate adjustments to ensure fairness and compliance with bankruptcy laws.
In some cases, settlements may be reached where certain debts are reduced or restructured to facilitate repayment.
The court must approve the final plan, which then becomes legally binding, allowing the debtor to make regular payments under the trustee’s supervision. This phase aims to balance the debtor’s ability to repay with the creditors’ rights to recover funds owed, ultimately leading to the discharge of remaining eligible debts once the plan is successfully completed.
How long Does it Take to Declare Bankruptcy?
The time it takes to declare bankruptcy can vary depending on the type of bankruptcy and individual circumstances:
Chapter 7 Bankruptcy: Typically takes about 4 to 6 months from filing to discharge. This includes gathering necessary documentation, completing credit counseling, filing the petition, attending the meeting of creditors, and waiting for the discharge order.
Chapter 13 Bankruptcy: Usually lasts 3 to 5 years, as it involves a court-approved repayment plan where the debtor repays a portion of their debts over this period. The initial filing and approval process may take a few months, but the case remains active until the repayment plan is completed.
Overall, the process duration can be influenced by factors such as the complexity of the case, court schedules, and the debtor’s adherence to required steps and deadlines
What to do Next
The Smart Law Group will be with you during every step of your divorce and you will always know what is going on in your case so you can make smart decisions for your future.
Schedule a call here today!
Steven J. Cohen
Bankruptcy Attorney specializing in Chapters 7, 11 and 13