Michigan Bankruptcy Facts
Are you feeling overwhelmed with credit card payments? Do you feel like your home may be at risk of foreclosure? Are you worried that your car might be repossessed due to unpaid bills? If you can answer yes to any of these questions, you may qualify for debt relief through bankruptcy protection.
Bankruptcy is a federal declaration that you are unable to either pay your personal or business debt to creditors. Depending on which chapter you file, you may either be eligible for a payment plan or will have to liquidate your assets. A bankruptcy lawyer will determine what your best option is and we are here to provide you with easy access to Michigan’s best bankruptcy lawyers who will work around the clock to get rid of your financial burdens.
Read on to find out more about Michigan bankruptcy and which options are better suited for your particular needs.
What is Bankruptcy and How Can it Reduce Your Debt?
Bankruptcy is the declaration of a debtor that they are unable to pay off their outstanding balances to creditors. If approved, debt will either be reduced or completely eliminated. Both individuals and businesses can file for bankruptcy in Michigan, but because there are so many different kinds of protection available, retaining an experienced bankruptcy attorney is key to ensuring the fasted and most favorable outcome for a case.
Depending on which chapter you petition for, your debt may either be cleared through the liquidation of assets (Chapter 7) or reduced while you pay back creditors on a court-appointed plan (Chapter 13). Each chapters brings about different outcomes, so read on to learn more about the most commonly sought chapters in Michigan.
Which are the Most Popular Chapters Filed in Michigan?
Chapter 7 and Chapter 13 are the most commonly sought petitions because they are the easiest to qualify for. Chapter 7 involves the liquidation of either an individual or business debtor’s in exchange for the discharge of unsecured debt. Chapter 13 involves paying off creditors over a period of time on a payment plan. Each of these chapters leads to very different outcomes, and just one small mistake petitioning the court for ether can lead you to incur even more debt. Below are a few facts about each chapter to help you understand what you can expect if you qualify for either or for both:
Chapter 7 Bankruptcy
- - Can be filed by both individuals and businesses
- - Assets are liquidated to eliminate debt
- - Most – if not all – debt is discharged
- - Some assets like a debtor’s home or pension plans are exempt from liquidation
- - Proceedings can resolve in as little as three months
- - There is no minimum amount of debt required to file
Chapter 13 Bankruptcy
- - Can only be filed by individuals
- - Debt will not be entirely eliminated but no assets will be seized
- - Ideal option for debtors facing foreclosure
- - Easier to qualify for than Chapter 7
- - Takes longer to emerge from (three to five years)
Hiring an Experienced Bankruptcy Lawyer in Michigan
If you are tired of struggling with debt, the time to act is now. Michigan bankruptcy lawyers are waiting to help you obtain debt relief as soon as possible and we are here to help you get connected to the most experienced and acclaimed attorneys in the state who will take on your case with tenacity and passion so you can achieve debt relief quickly.
Our site features links to some of the best local bankruptcy attorneys in the state who will stop at nothing to get creditors off your back and your debt wiped clean. Contact one of our featured attorneys today to schedule a consultation and discuss your ideal bankruptcy plan.