Litchfield, Hillsdale County Bankruptcy Attorney
Coping with financial uncertainty can affect nearly every aspect of your life, from personal and professional relationships to your well-being and mental health. Getting back on the right financial track can feel like a daunting challenge, and you may not know where to start, especially because of the stigma surrounding the word “bankruptcy.”
At Marrs & Terry, we want you to understand that bankruptcy is a tool. It can help you reset and rebuild your life in ways you may not have considered before. Our Michigan bankruptcy attorneys can evaluate your unique situation and guide you through bankruptcy. From counseling you on the ins and outs of the process to helping you understand tax implications, benefits, and complications, we aim to provide comprehensive bankruptcy representation.
If you live in the Litchfield or Hillsdale County community, our legal team can help you rebuild your financial future. Contact our office at 734-663-0555 to arrange a confidential legal consultation where we can discuss your situation and review your bankruptcy options.
Understanding Bankruptcy in Michigan
Bankruptcy is a legal process that allows individuals and businesses to get out of debt when they are financially unstable or underwater. It is often referred to as a way for people to achieve a financial “clean slate.”
There is still a stigma surrounding bankruptcy, so some people try hard to avoid it. However, when unexpected things happen, such as a job loss, divorce, or a significant illness or injury, even financially competent families or companies can suddenly find themselves in a precarious financial position where they need legal and financial help. Bankruptcy is a tool that may be useful in getting you back on the right financial track.
How you move forward with bankruptcy depends on your unique financial position. Options for individuals in a financial hole include Chapter 7 and Chapter 13 bankruptcies.
Do You Need a Litchfield and Hillsdale County Bankruptcy Attorney?
Bankruptcy can be an emotionally exhausting and confusing process. One problem is that many people considering bankruptcy don’t think they have the money to afford legal representation. Trying to work through the bankruptcy process without an experienced attorney can cost you in the long run. To achieve the most favorable outcome possible for your situation, you need a skilled Michigan bankruptcy attorney who can manage your case and advocate for you every step of the way.
At Marrs & Terry, we’ve been helping area residents get a fresh start for over two decades. We take a proactive and comprehensive approach to your situation to maximize your options and help you address your financial concerns and goals. Bankruptcy doesn’t have to be embarrassing or overwhelming. We aim to make the process as stress-free as possible so you can face the future with a brighter and more optimistic outlook. Effective legal representation is on your doorstep if you live or work in the Litchfield or Hillsdale County area.
Chapter 7 vs. Chapter 13 Bankruptcy
The two primary bankruptcy options are Chapter 7 and Chapter 13. Chapter 7 is the bankruptcy type most commonly filed by individuals and is sometimes referred to as a liquidation bankruptcy. In a Chapter 7 bankruptcy, personal assets are sold to repay creditors before the remaining unsecured debt is discharged.
When a person files for Chapter 7 bankruptcy, a Michigan court appoints a trustee to oversee the liquidation process and pay creditors. Any unsecured debt can then be discharged or erased. Unsecured debt means any debt not backed by physical collateral like a house, property, or another asset. Unsecured debt that may be discharged during Chapter 7 bankruptcy includes:
- Credit cards
- Personal loans
- Medical bills
- Past due utilities
- Some judgments or garnishments
The single biggest misconception about filing for Chapter 7 bankruptcy is that you lose everything you have worked for. That is not the case. While Chapter 7 does involve selling personal assets, there are exemptions set by law that can protect some of your assets. There are state-specific Michigan exemptions as well as federal exemptions. Michigan allows residents to choose whether to use state or federal exemptions to protect their home, vehicle, or other personal property based on which exemptions provide the most benefit for them.
Chapter 7 bankruptcy cannot discharge secured debts, and you can potentially lose non-exempt property during bankruptcy. While Chapter 7 can help you save your home or vehicle from foreclosure or repossession and help you stop aggressive creditors from harassing you, it lingers on your credit report for ten years, which can present challenges when you attempt to secure financing, credit, and loans in the future.
Chapter 13 bankruptcy is different. Whereas Chapter 7 involves liquidating assets, Chapter 13 is about reorganizing your debt. During a Chapter 13 bankruptcy, your debts are restructured into a payment plan. The creditors, the trustee, and a Michigan bankruptcy court must approve the plan. This payment plan, which can last three or five years, makes paying your creditors a portion of what you owe more manageable. How much you must repay depends on your income, current debts, and the tenacity of your bankruptcy attorney.
Filing Chapter 13 helps halt overzealous creditors while allowing you to keep and restructure your assets. Another benefit is that Chapter 13 tends to be less damaging to your credit. This type of bankruptcy drops off your credit report in about seven years, which allows you to rebuild your credit more quickly following bankruptcy.
Are There Eligibility Requirements?
Yes. There are requirements you must meet to file for bankruptcy in Michigan. For Chapter 7 bankruptcy, if your income falls below the Michigan median for your household size, you are eligible to file and are exempt from the means test calculations. However, if your household income exceeds the Michigan median, you’ll be subject to the means test calculations to establish whether you qualify to file. Those not qualifying for Chapter 7 bankruptcy may still consider filing for Chapter 13.
Determining bankruptcy eligibility and completing the means test calculations can be time-consuming and challenging. Securing legal representation and having a skilled bankruptcy attorney manage this complex process is in your best interest.
A Michigan Bankruptcy Attorney Can Help Answer Your Questions
Bankruptcy can be a confusing and overwhelming process. You do not have to manage the stress of this situation alone. At Marrs & Terry, we take the time to get to know you and identify legal solutions to your financial and legal issues.
Residents of Litchfield and Hillsdale County can count on our team to help them find the answers they need. Contact our office today to request a confidential legal consultation.
Directions to Our Office
If you live in Litchfield or the surrounding area of Hillsdale County, we are ready to help you begin your new financial journey. Follow these directions to find our office, or call us at 734-663-0555 for more assistance. We are proud to serve the Litchfield and Hillsdale County communities.
From the North:
- Take MI-52 S toward Adrian
- Continue onto South Main St (BUS-223)
- Destination will be on the left
From the South:
- Take US-23 N toward Adrian
- Turn right onto South Main St (BUS-223)
- Destination will be on the right
From the East:
- Take US-223 W toward Adrian
- Turn left onto S Main St.
- Destination will be on the right.
From the West:
- Take US-223 E toward Adrian
- Turn right onto S Main St.
- Destination will be on the right.