Explore the Benefits of Chapter 7 and Chapter 13 Bankruptcy in Livonia and elsewhere in Metro Detroit
Bankruptcy is often seen as a last resort for those overwhelmed by debt. However, waiting too long to file can worsen financial problems. If you’re depleting retirement accounts or using one credit card to pay off another, it’s time to consider bankruptcy.
Here’s why filing for Chapter 7 or Chapter 13 bankruptcy might be the right solution for you.
1. Stop Wage and Bank Garnishments
If your wages, bank accounts, or Michigan tax refunds are being garnished, filing for Chapter 7 bankruptcy can stop these actions immediately. The Automatic Stay, a powerful Federal injunction, halts all debt collection efforts as soon as you file.
This includes stopping:
- Lawsuits
- Repossessions
- Foreclosures
Even better, bankruptcy can require creditors to return garnished funds if they exceed $600 within 90 days before filing. Our experienced attorneys at The Hilla Law Firm have successfully retrieved garnished funds and pursued non-compliant creditors for sanctions.
2. End Harassment and Lawsuits
Debt collectors can make life unbearable with constant phone calls, letters, and lawsuits. Filing for Chapter 7 or Chapter 13 bankruptcy in Detroit or Livonia puts an end to these tactics immediately.
The Automatic Stay stops all collection efforts, including:
- Harassing calls and letters
- New or ongoing lawsuits
- Wage and bank garnishments
Creditors who ignore the Automatic Stay can face legal penalties, and we fight aggressively to protect your rights.
3. Rebuild Your Credit
Contrary to popular belief, filing for bankruptcy doesn’t destroy your credit forever. While Chapter 7 bankruptcy remains on your credit report for 10 years, it can improve your financial standing by eliminating negative debts.
Here’s how bankruptcy helps:
- Credit Reports: Bankruptcy discharges old debts, improving your debt-to-income ratio. This “fresh start” makes it easier to rebuild credit responsibly.
- Credit Scores: Eliminating debt reduces financial strain, often resulting in a significant FICO score improvement within a year after filing.
4. Get Out of Unaffordable Leases and Contracts
Chapter 7 or Chapter 13 bankruptcy allows you to reject burdensome leases or contracts, such as:
- Auto leases with excessive penalties
- Cell phone contracts
- Rental agreements
This legal tool frees you from obligations, treating remaining debts as unsecured, dischargeable liabilities.
5. Recover After Divorce
Divorce often brings financial stress, especially with joint debts. Filing for bankruptcy before or after a divorce can simplify financial obligations and eliminate certain marital debts.
Our attorneys review divorce judgments to determine how bankruptcy can help you recover financially while protecting your assets.
6. Discharge Tax Debt
Certain IRS and Michigan tax debts are dischargeable through Chapter 7 or Chapter 13 bankruptcy. Our firm evaluates your case to determine if your tax liabilities qualify.
7. Retrieve Repossessed Vehicles
If your car or other property has been repossessed, bankruptcy may help you get it back. By filing quickly, the Automatic Stay requires creditors to return repossessed vehicles.
Key Benefits:
- Stop repossession sales
- Reduce loan payments with “cram down” options (pay only the vehicle’s fair market value)
Your Legal Right to a Fresh Start
Bankruptcy is not just a legal process—it’s a financial reset protected by the U.S. Constitution. It exists to help individuals like you regain control of your finances and provide for your family.
Learn more about Chapter 7 Bankruptcy here.
Learn more about Chapter 13 Bankruptcy here.
If you live in Livonia, Detroit, or surrounding areas and face overwhelming debt, contact Noble Path Legal to schedule your free initial consultation appointment today by clicking the button below. Don’t wait until it’s too late. Find out if Chapter 7 or Chapter 13 bankruptcy is right for you.
