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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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We live in Michigan. My husband & I are thinking of filing

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We live in Michigan. My husband & I are thinking of filing bankruptcy. In 2009 we had to leat our other home go and we wanted to keep good on our current mortgage. We make roughly $160k/yr in salary and have 3 kids. Have 2 vehicles that we owe money on. We have roughly 4 creditors suing us at the moment for unpaid credit cards. We saw a bankcruptcy attorney over a year ago and he advised we made too much money for one of the Chapter's, so my husband & I waited to see which creditors would sue us. I do not want them to garnish our wages. Is there any verbiage I can use when negotiating a lower amount owed to these debt collectors? They seem pretty tough on negotiations. Thanks for your help!
Hello,

Thank you for your question. My name is Ellen. I will do whatever I can to answer your questions!

First I would look at the age of the debt. If you have not made payments for 6 or more years, you may assert a statute of limitations defense to payment.

Assuming the statute of limitations defense is not available to you, you may want to explain that you are willing to enter into a payment plan for X dollars. You can tell them that if they are not willing to accept your terms, you will need to file bankruptcy and they will receive nothing. (They do not know that you do not qualify for Chapter 7 bankruptcy)

You may also want to consider a chapter 13 bankruptcy. A chapter 13 bankruptcy would allow you to set up a payment plan over a five-year period. It would require that you pay a percentage of your debt over the 5 years and at the end of the five-year period the remaining debt would be discharged

Please let me know if you need any clarification. I would be glad to assist you further if I can
Ellen and other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.


Ok, we will try to negotiate first and if they're not willing to budge we will file Chapter 13. If we file Chapter 13 i have a few more questions.


 


1. Will we be forced to lose our vehicles?


 


2. Any idea what a typical payment % would be a month vs our income?


 


3. Do we need to hire a local lawayer or can we file ourselves?


 


Thank you again for your help! :)

Hi Carrie,

 

Glad to clarify.

 


1. Will we be forced to lose our vehicles?

No. A chapter 13 permits the debtor to keep all assets

2. Any idea what a typical payment % would be a month vs our income?

There is not a typical payment percentage. All of your disposable income would be allocated to make payments under the plan. Plan payments would include your current living expenses, car payments, necessary expenses and the balance would be paid toward creditors

3. Do we need to hire a local lawayer or can we file ourselves?

You are permitted to file without an attorney. I strongly suggest that you retain counsel as it is a complex procedure

 


Thank you again for your help! :)

I wish you the best at this difficult time.

I am here to help. To speak with me again, simply place my name in the first sentence of your new question. If I cannot help you, I can direct you to someone who can.

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Thanks again and all the best to you.

Ellen
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