Michigan Bankruptcy Attorneys

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.

If you are one of the many Americans struggling under the weight of unpaid medical debt, you may be feeling overwhelmed and hopeless.

As soon as you file for bankruptcy, the "automatic stay" goes into effect.  An automatic stay is provided for in section 362(a) of the Bankruptcy Code. The purpose of this court order is to give the debtor "a breathing spell from his creditors, stopping all collection efforts, all harassment, and all foreclosure actions." As such, most collection activity temporarily stops. Below is a sample list of some of actions the automatic stay may temporarily stop upon filing for bankruptcy.

When you file a Chapter 13 or Chapter 7 bankruptcy in Michigan, the court automatically issues an Order for Relief that includes an "automatic stay." The automatic stay requires all your creditors to immediately stop trying to collect form you. If your home is scheduled for a foreclosure sale, the sale will be legally postponed while the bankruptcy is pending--typically for three to four months. However, if the lender makes a motion to lift the stay, and they generally do, the creditor usually obtains the bankruptcy court's permission to proceed with the sale. You probably will not get the full three to four months but the sale will be postponed by perhaps two months, or even more if the lender is slow in pursuing the motion to lift the automatic stay.