Bankruptcy Attorneys Serving Blissfield
Financial stress has a way of slowly taking over your life. And if your financial issues have been building for some time, it’s easy to start to feel trapped. Don’t be fooled — there’s a way out! In some cases, bankruptcy is the best option to give yourself a clean slate and start anew.
You can count on the Marrs & Terry, PLLC team to assess your case and tell you whether you’re a good candidate for bankruptcy. If you decide to take this important step, we’ll be with you each step of the way as you move toward a better financial future.
Are You a Good Candidate for Bankruptcy?
Blissfield is a place that combines history — like the charming Blissfield Downtown Historic District — with new innovation. The township’s Main Street Organization is dedicated to supporting continued business expansion, especially for retail businesses and food establishments that support a great quality of life.
Blissfield has a lot to offer, but it still has a surprisingly low cost of living. However, if you have significant debt and other financial obligations, even a low cost of living may not be enough to help you resolve your financial issues.
Being under financial stress doesn’t automatically mean bankruptcy is right for you. Here’s a look at some of the signs you may be a good candidate for Chapter 7 bankruptcy.
Most of Your Debts Are “Dischargeable”
Chapter 7 bankruptcies involve “discharging” (wiping out) many kinds of debts like:
- Credit cards
- Unsecured loans
- Medical bills
- Accounts with collection agencies
- Past-due rent
- Deficiency balances (balances you still owe on car loans or other secured loans after repossession)
- Old unpaid taxes
- Business debts
- Many kinds of civil court judgments
If most of the debts you have are dischargeable under Chapter 7, it’s worth considering. However, you should know that there are some kinds of debts that generally can’t be wiped out:
- Student loans
- Debts you owe as the result of harming or killing someone while you were intoxicated
- Debts you owe as a result of other criminal acts
- Recent tax bills
- Child support
- Spousal support/alimony
- Mortgages or car loans if you keep the home or car through bankruptcy
Of course, many people have complex debt situations, and you may have a mix of dischargeable and non-dischargeable debts. If this is the case, our team can help you assess your case and decide whether bankruptcy is right for you.
You Don’t Have Significant Assets
Not everyone realizes that Chapter 7 bankruptcy actually requires you to sell certain assets and use the proceeds to help pay off your debts. You can usually keep a car with a modest value and many of the things you need for everyday life. Many of our clients who pursue Chapter 7 bankruptcy do so because they have very few assets.
However, contrary to popular belief, you may still be eligible for Chapter 7 bankruptcy if you own a home. If you’re currently paying a mortgage, you often will be permitted to keep your house as long as you keep paying the mortgage as agreed. If you don’t pay, you might face foreclosure.
Your Income Is Below a Certain Level
In every state, Chapter 7 bankruptcy is “means tested.” This means your income must be below a certain level. Means testing is a complicated process, and certain portions of your income can be deducted.
If you aren’t sure whether you qualify, please get in touch with us. We can help you through the means testing process. If you don’t qualify for Chapter 7 bankruptcy, we can help you find other options that may work for you.
You Don’t Believe You Can Repay Your Debts Anytime Soon
Most people who have the means to repay their debts — or at least repay them in the near future — will choose to do that instead of going through the challenges of bankruptcy. However, high-interest debts can snowball over time, leaving you with balances you may not be able to repay.
A good example of this is if you have credit cards that are routinely maxed out or almost maxed out and can only pay the minimum payment each month. And, of course, if you have to borrow money to repay your debts, bankruptcy may be an appropriate way to move forward.
Creditors Can Take Your Money or Property
If you are “judgment-proof” (meaning you have income that cannot be garnished by creditors), you might not choose to proceed with bankruptcy. However, If you have wages that can be garnished or property that can be repossessed, Chapter 7 bankruptcy may be your best option to protect both.
Wage garnishments can take away a significant portion of your paycheck, and if your income is limited in this way, you might find yourself going deeper into debt.
Another Option: Chapter 13 Bankruptcy
Many people talking about bankruptcy are referring to Chapter 7 bankruptcy. However, another option — especially if your income is above a certain level — is Chapter 13 bankruptcy. This type of bankruptcy doesn’t wipe away debts like Chapter 7 but focuses on “debt reorganization.” This creates a clearer repayment plan going forward.
If you aren’t sure whether Chapter 7 or Chapter 13 bankruptcy is the right choice, you don’t have to make this pivotal decision alone. Our team can look at your finances with you and help you determine which option is best for your financial future.
How Can a Bankruptcy Attorney Serving Blissfield Help?
Unless you have a legal background, the process of filing for bankruptcy can be extremely stressful and confusing. Your attorney can help you at each step of the process, including:
- Representing you in required bankruptcy meetings with creditors
- Helping you understand the legal language associated with bankruptcy proceedings
- Ensuring all your financial records are tracked down and accounted for
- Filing all the forms on time and to the right places
- Verifying that your debts are actually discharged as agreed after proceedings
- Helping you understand the steps in the process and the bankruptcy timeline as a whole
One of the most critical benefits of hiring a bankruptcy attorney is the peace of mind you’ll get. When you have a great attorney, you can rest assured that your best interests are always protected.
During bankruptcy proceedings, even one incorrectly filed form can result in your case being dismissed. When you file forms yourself, there’s a significant chance that you’ll accidentally fill out the wrong form or miss a deadline.
However, because our bankruptcy attorneys deal with these proceedings on a daily basis, we’re very familiar with filing procedures and deadlines. Let us handle the legwork for you!
Build a Better Future With Marrs & Terry, PLLC
Many people avoid bankruptcy because they’re afraid of the social stigma, the short-term credit impact, or even the legal process itself. But you shouldn’t let fear stop you from finding new freedom from debt.
Bankruptcy might seem complicated, but it’s not something you have to navigate alone. Our bankruptcy attorneys will help you formulate a strategy while treating your case with the respect, sensitivity, and support you deserve.
If you’re considering bankruptcy, this isn’t a decision you have to make alone. Please call us, send us an email, or chat with us online to get started.