Frequently Asked Questions
Michigan Bankruptcy Lawyer in Sterling Heights
Are you considering filing for
bankruptcy? Here are some frequently asked questions about the
Will I be able to obtain credit after bankruptcy?
Yes, you will be able to rebuild your credit over time. There are many
steps that you can take to improve your credit score that a Michigan bankruptcy
attorney can explain.
Can I file for bankruptcy more than once?
Yes, under certain circumstances. If you are filing a
Chapter 7, you will have to wait 8 years before you can file again.
Chapter 13 rules are different, allowing you to file for bankruptcy more frequently.
Will I have to file a joint bankruptcy petition if I am married?
No, you have the option of filing as an individual or as a couple.
Will I still get calls from creditors after I file my petition?
Once your bankruptcy petition has been submitted, the court will issue
an automatic stay which will stop all creditor collection activities,
including phone calls, letters and emails.
Can I eliminate my tax debt through bankruptcy?
You may be able to discharge tax obligations more than 3 years old depending
on the situation.
Will all of my assets get sold in a Chapter 7 bankruptcy?
Only non-exempt assets will be liquidated in a Chapter 7 bankruptcy. There
are both state and federal guidelines that cover what type of property
must get sold.
How will I know if I qualify for bankruptcy?
Your eligibility for Chapter 7 bankruptcy is determined by the
means test. If you do not meet the criteria for Chapter 7, you will be able to file
for bankruptcy under Chapter 13.
I'm several months past due on my house payment, and I've received
notice that my mortgage company has started foreclosure proceedings. Is
it too late to save my house?
No. Chapter 13 can allow you to stop the foreclosure process and permit
you to propose a plan to pay the amount that you're past due back
to the mortgage company over time.
My paycheck is presently being garnished due to a collection lawsuit. Can
bankruptcy stop this?
Absolutely. The "automatic stay" of proceedings afforded by the
bankruptcy code can immediately stop a garnishment. In many cases, bankruptcy
can force a judgment creditor to return garnished wages to you!
Can I get rid of my student loans by filing bankruptcy?
No. Except in the rarest of circumstances.
I'm considering filing a Chapter 7, but I have one particular loan
that my mother co-signed on. What happens in this situation and can I
When there are two parties who are obligated on the same debt, generally
the debt is discharged as to the party filing bankruptcy but
not as to the party who didn't file. In order to protect mom from collection
action, a reaffirmation agreement may be entered into with this particular
creditor. Such an agreement re-establishes your obligation on this debt
- and so long as you keep up your payments, no action will be taken against mom.
Do I need an attorney to help me file for bankruptcy?
Technically no. However, technically you don't need a surgeon to perform
an appendectomy either. Bankruptcy is a complicated area of the law. To
say it is a good idea to hire a professional to assist you would be an
My co-worker filed Chapter 7 and received a discharge of all of his debts.
Can I do the same thing?
Every case is different. Each case depends on the financial circumstances
of the individual or married couple. Call for a free consultation to determine
exactly what your options are.
My mortgage interest rate adjusted, so now I can't afford my house
payment and I can't sell it due to the depressed real estate market.
Is there a way that I can I walk away from my house?
Yes. By invoking your rights under the bankruptcy code you can elect to
surrender your home without exposing yourself to personal liability on
the note. Also, depending on your situation, you may be able to do a Deed
In Lieu of Foreclosure - without even having to file bankruptcy.
Do I need to go to Court if I file bankruptcy?
Yes. In a Chapter 7 proceeding you will need to appear once (in most situations).
In a Chapter 13 you may be required to appear on two separate dates. Michigan
Bankruptcy Attorney Hensel will accompany you at all hearings.