Should I file for bankruptcy? There were over 56,000 bankruptcies filed in Michigan alone in 2011. If you are struggling with financial hardships, you are certainly not alone. However, making the choice to file bankruptcy can be a difficult decision to come to. The best way to handle navigating this difficult time would be to search out the best bankruptcy attorney near you.
After asking should I file for bankruptcy, you should be discussing with your lawyer which chapter of bankruptcy is right for you. Chapter 7 vs Chapter 13 bankruptcy can be confusing, and you will want to get the right information before filling out all of the paperwork. Your top bankruptcy lawyers in Michigan will be able to explain the details of each law.
If you have very few assets and are struggling to pay your monthly bills, your lawyer may suggest that you apply for chapter 7 bankruptcy. The benefits of filing bankruptcy under this chapter are that it is basically a liquidation of your assets to discharge your debt. You will surrender any assets you still possess, and your unsecured debt will be discharged by the courts. However, you must pass a means test before you qualify for this type of bankruptcy.
Around 43 percent of American spend more than they earn annually. You may accumulate many assets in the process, but you can find yourself in some financial hot water. In this case, you will want to ask should I file for bankruptcy under chapter 13. In 2011, 16 percent of Michigan bankruptcy filings were under chapter 13.
This is a more common because you are not subject to the means test, and you are able to hold on to your assets. Chapter 13 bankruptcy allows you to keep your home, car, and other assets. It is more of a reorganization of debt, and you will pay one monthly fee to a court trustee rather than to all of your debtors. The reasonable payments usually last 3 to 5 years, and then you are out from under your unsecured debt.
The question should I file for bankruptcy is scary, but not as scary as it once was. Roman law back around 450 BC allowed creditors to deal harshly with debtors by either selling the debtor in slavery, or killing them. Luckily, your life is not in danger, but you should be aware that bankruptcy is not a complete clean slate. Not all of your debt will disappear once you have claimed bankruptcy. Secured debt and some other types of debt may not be covered through your filing.
In order to have the right information to make informed decisions about your bankruptcy, you should begin researching bankruptcy lawyer near you. These professionals have a great deal of experience helping struggling families get back on their feet. With the right legal guidance your bankruptcy can go smoothly and painlessly. To see more, read this: michiganbankruptcyfirm.com