The filing of any type of bankruptcy is not a simple process. At times the emotional feelings of people towards monetary belongings are very stressful. These feelings easily arise during such tough financial times and require the support of others. It is best to inform your family and friends of your situation and what you are in the process of doing. A reputable Law Firm, such as Van Tubergen, Treutler & Hayes, PLLC with experience in Bankruptcy law can help you through the process. Contact us today for a free initial consultation!   616-844-3000

Bankruptcy is a legal procedure in Federal Court which is provided through Article 1, Section 8, Clause 4 of the United States Constitution. Congress establishes statutory laws concerning bankruptcy through Title 11 of the United States Code. There are also state laws which may also apply. The information contained herein is not complete and further legal advice may be required. Information is from the current BAPCPA law.

Van Tubergen and Treutler, PLLC represents consumers in filing two types of bankruptcy petitions – Chapter 7 and Chapter 13. In a Chapter 7 bankruptcy, the debtor surrenders all non-exempt property to a bankruptcy trustee who then liquidates that property and distributes the proceeds to the debtor’s unpaid creditors. As a result, the debtor is entitled to a discharge of the unsecured debt, meaning the debtor is not legally responsible for further payment. Typical unsecured debt would include credit cards, medical or dental bills, retail accounts, etc. The debtor’s secured debts are handled by reaffirmation (an agreement to continue regular payments with a creditor), redemption (payoff of an agreed amount owed the creditor) or surrender to the trustee of the item secured for disposal by sale. Secured items are generally homes, automobiles or large item purchases at retail stores. Further some debts are not dischargeable, such as student loans, spousal and child support, some taxes, etc. Debtors are also able to exempt a certain amount for particular items or in some cases the entire value of items in order to keep them.

In a Chapter 13 bankruptcy, a debtor retains ownership and possession of all assets, but must agree to a plan to repay some portion of debt to creditors from future income over a period of from three to five years.