Overwhelming credit card or medical debts

Overwhelmed with credit card bills, medical bills or any other type of unsecured debt obligation? Our attorneys can help.

If you can afford to make some payments toward the debts, there is a solution - even if you do not feel like you will ever get out of debt based on high interest rate, penalties and/or the ratio of your debt to your income. With minimum monthly payments, you are often just servicing the debt by paying the interest charges, but never making headway to pay down the principal balance.  Use our Debt Calculator tool to see exaclty how much debt you have, how long it would take you to pay it off and what you would have to pay in interest along the way.

Get Reasonable Payment Terms

The Chapter 13 reorganization will set-up reasonable repayment terms based your budget. We prioritize secured debt obligations and your monthly living expenses - no payments go to your unsecured creditors until you are caught up on all secured and priority debt obligations. You are only required to pay back what you can afford. The balance of the debts is discharged at the completion of the program.

While you are paying these debts back, they are reduce to 0% interest and there are no continued late penalties or fees. In other words, any payments you make are going straight to paying down the principal.

Your Creditor's Responsibility

During the process of the Chapter 13 Reorganization, all your creditors are required to file a "Proof of Claim." Non-government entities have six months from the date of case filing to file their Proof of Claim. Government entities (IRS, State of Michigan, etc.) have 180 days to file their claims.

The Proof of Claim is a form that is filed with the court that establishes the amount of the debt and the creditor pursuing the debt. If you disagree with the amount claimed, the court has a process where your attorney can object to the claimed amount and bring the matter before the court for resolution. If one of your unsecured creditors fails to file a claim within the specified time, the debt is automatically discharged at the completion of the program, even though they did not receive any payments. The responsibility is on your creditor to file a claim after we put them on notice, or they forfeit their rights and you are no longer obligated on the debt after discharge.

Debt Elimination

If you have overwhelming unsecured debts and cannot make any payment efforts based on your budget and financial situation, you can file a Chapter 7 Fresh Start and eliminate the debts altogether. This process takes about three to five months to complete, but the protection from your creditors is immediate once the case is filed.

We offer free in-office and phone consultations to review your personal circumstances, analyze your situation and advise you on the best course of action. Please call us toll free at 888-868-6005 or click here to schedule a consultation right now.