Michigan Bankruptcy Attorneys

As soon as you file for a Chapter 7 bankruptcy or Chapter 13 bankruptcy, you are protected against certain types of collection activities by what is known as an “automatic stay.” The automatic stay is meant to give you time to get your finances in order and goes into effect immediately upon the filing of your bankruptcy petition. While the automatic stay prohibits collection activities by creditors in many instances, it does not provide protection against all creditor actions, including some eviction attempts.

A reaffirmation agreement is an agreement between you and a loan provider stating that you will continue to pay on a debt that could have been discharged during bankruptcy in return for being allowed to keep a piece of personal property (an automobile, for example).

Except for in specific, rare circumstances, your retirement accounts are considered exempt assets under bankruptcy law. This means that when you file for either Chapter 7 bankruptcy or Chapter 13 bankruptcy you get to keep the money in your retirement accounts. This holds true for IRAs, Roth IRAs, 401(k)s, pension plans, profit sharing plans, stock bonus plans, employee annuities, government deferred compensation plans and certain trusts.

Under most circumstances, declaring bankruptcy will not discharge your student loan debt. This means that you will still be required to pay back your student loans.

However, when you file for bankruptcy, you are granted temporary relief from harassing collection activities. If you are in default on your student loans, the temporary relief from collection provided by bankruptcy law may give you the time you need to get caught up on your payments. Additionally, you may be able to restructure your existing student loans in order to make your payments more feasible.