The Bankruptcy Process
Most people consider Bankruptcy when the have had trouble paying their bills for a while. They usually have tried to lower their interest rates or payments, or borrow money, but at some point it becomes clear that they are too far in the hole to get out. Whether due to job loss, divorce, sickness or other circumstances, Bankruptcy can get you relief from the seemingly endless cycle of bills, late and overdue payments, collection calls, letters, and all the other stress that goes with having too much debt.
The term often used is "Fresh Start," and that's exactly what happens when a person goes through Bankruptcy. While getting out of debt may not put any more money in your pocket, it sure keeps a lot from going out of it. An overview of how my office can help a person out of this situation is set forth in the "Quick Start" guide. If you have not already read it, you can find it by clicking here.
As I struggled to write this section, I had, as my first priority, to try and be as legally accurate as possible. My attempts kept me going back to the actual "official" version of the Bankruptcy process at the United States Courts site. Then I realized that nothing I could write could be any more accurate than that official version, and that my "Quick Start" guide was really just all of that information boiled down and put into terms of how we use that information and process in my office. Before I make the "official" version sound too much like the final and definitive word on Bankruptcy, please note the following disclaimers at the end of the Bankruptcy Basics section:
Finally, Bankruptcy Basics should not substitute for the advice of competent legal counsel or a financial expert. Neither the Bankruptcy Judges Division nor the Administrative Office of the United States Courts can provide legal or financial advice. Such advice may be obtained from a competent attorney, accountant, or financial adviser.
Public Information Series
Bankruptcy Judges Division
Administrative Office of the United States Courts
April 2006
Third Edition
While the information presented is accurate as of the date of publication, it should not be cited or relied upon as legal authority. It should not be used as a substitute for reference to the United States Bankruptcy Code (title 11, United States Code) and the Federal Rules of Bankruptcy Procedure, both of which may be reviewed at local law libraries, or to local rules of practice adopted by each bankruptcy court. Finally, this publication should not substitute for the advice of competent legal counsel.
You can rest assured that my office is well aware of, and works with, on a daily basis, all of the rule changes, updates, and local rules that affect each case we handle. This is why you hire a Bankruptcy Lawyer.
Notice that even the U.S. Bankruptcy Court site advises that a person hire a competent Bankruptcy Attorney rather than try to do it themselves. That section is here.
So, with that in mind, I have provided a link here to the U.S. Bankruptcy Court's official site.The reader should click on the section entitled "Bankruptcy Basics" and read through that section and then all of the first four sections and then the last, which is the glossary. For ease of navigation, I have provide those links below.- The "Process" is described here:
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/process.html
- The "Discharge" is described here:
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/discharge.html
- The "Chapter 7" section, which is what most people file and want is here:
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html
- The "Chapter 13" section, which involves repaying some or all of your debt, rather than getting it all wiped out, is here:
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html
- The "Glossary," which puts the legal words into layman's terms, is here:
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/glossary.html
My office only handles cases in which the person or people filing live in Macomb, Oakland, Wayne, St. Clair and Sanilac Counties. Those cases all have their Hearings held in Detroit. Thus, those counties are considered "local" and the same rules, except those applying to income and expense allowances, apply in all cases. Income and Expense allowances are set county-by-county, and we use the applicable Federal standards for each when we talk to you.
People living in other counties, such as Lapeer and Genesee, have their cases heard in the Flint Bankruptcy Court. While I don't go there, I'm happy to provide a referral to a local attorney in those counties who does.
The Detroit Bankruptcy Court's website, with links to Local Rules and other information relevant to Detroit cases is here: http://www.mieb.uscourts.gov/
Please also note that although Monroe and Washtenaw Counties are part of the Detroit Bankruptcy Court system, I do not handle cases in which the person or people filing live there, because their Hearings are held in Ann Arbor.
Bankruptcy is complicated. The job of a good Bankruptcy Attorney is to have a mastery of those complicated laws, rules and procedures and make the process easy for the client. I don't think anyone can make it easier than my office does. We make the information gathering process as simple as possible for the client, and turn that into a properly prepared Bankruptcy Petition that protects their belongings and gets them out of debt. Time and time again my staff is told by callers and clients how friendly and helpful they are compared to other offices that were called. We take the time to explain the process over the phone, during regular business hours, and make sure all of your questions are answered. The telephone consultation is free, confidential, and no one will ever press you to make an appointment.
If you are in debt, and need to get out of debt, I promise that your call to my office will be answered by a friendly and helpful staff member. Whoever else you do or don't call, please take the time to speak with my office, as well. I'm sure you'll be glad you did.