Debt Consolidation and Bankruptcy in Michigan

When faced with financial distress, it is a smart idea to speak with a financial attorney about your situation. You should always be proactive and take action before its too late; you can are garnished, or lose your home or car. Our experienced bankruptcy lawyers provide direct and practical legal solutions that you will benefit from.

Jason Allen Law is a law firm dedicated to helping people that focuses solely on individuals in financial hardship around Kalamazoo, Michigan. Our team of attorneys has handled over five thousand bankruptcies and is committed to providing honest and person legal advice that is tailored to meet the needs of your situation.

Debt Reorganization in Chapter 13
A Chapter 13 bankruptcy, allows your debts to be consolidated into one low monthly payment where you will probably only pay back 10% of your debt. This payment will typically last 5 years. When your payments are done, your debt will be gone. A Chapter 13 may be the right option for you if:

You are looking to save a home or vehicle from foreclosure or repossession
Your main concern is taxes, child, support, or tickets
You want to pay your debt back
A chapter 13 will catch you up on your mortgage arrears, and if your are underwater on your house we can often get rid of your second mortgage.

Choose Chapter 13 vs. Debt Consolidation/Debt Settlements?
Debt consolidators are everywhere and would have you think your solution lies with them. Sadly, a lot of them are scams and can do more damage than good to your credit. Debt consolidation has several drawbacks:

Tax consequences: Debt settled becomes taxable income to you
Creditors are not forced by the law to accept your settlement
Debt settlement takes years
In all circumstances, debt settlement is more expensive than a bankruptcy
Bankruptcy has no affect on your taxes at all, forces all creditors to participate, can be done in as little as 3 months and will often cost less than 5% of your total debt.

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