Community Pitch

Chapter 13 bankruptcy can be explained easily. Simply put, Chapter 13 is the bankruptcy law that gives an individual three to five years to pay off their debts, with reduced payments.

In return for this lenient payment plan, the courts allow the person to keep his assets. On the other hand, when you file Chapter 7 bankruptcy, you wash your hands of all debt, and do not pay any of it back. Bottom line is that Chapter 13 requires that you repay all of your debts, but under much more favorable circumstances than you currently are paying.

If you currently have a job, and are drawing a regular salary, and things look promising for the future, then Chapter 13 is the way to go. Even though it will end up on your credit reports, when you pay off your debt within the time period, you can work towards regaining your good credit again.

After meeting with a Michigan bankruptcy lawyer I was notified or educated that I may have problems with discharging a best buy credit card because I purchased a laptop prior to filing bankruptcy. I had not intended to file bankruptcy until I had received a wage garnishment for medical bills. I discussed my issue with the attorney and laid out all the details of how I came to file bankruptcy after using my credit cards. The lawyer said we could still file and state I would be willing to pay for any purchases I made with in the last 30 days of filing if the trustee questioned the purchase or the credit card company made a complaint. I also said I would be willing to return the computer. Offering to continue to pay for the item or return the item offers an explanation that your purchases was not an intent to defraud the creditor by filing bankruptcy.