Michigan consumers who are facing overwhelming credit card debt may be considering filing for personal bankruptcy. However, many people hesitate because they are unsure about the security of their homes and property. Before proceeding with a bankruptcy filing, it may be wise to consult with an experienced bankruptcy attorney. In order to determine if assets can be protected, the attorney will assess the financial situation. After analyzing the circumstances, he or she will explain the protection offered by a Chapter 7 or Chapter 13 bankruptcy.
Together, you and your attorney will establish the importance of your major assets to determine which need protection. These assets may include your home, motor vehicle, pension plan or 401(k), and, once your priorities are clear, your attorney will work on protecting them. The state of Michigan offers generous protection in the form of bankruptcy exemptions. Your attorney will guide you through the process of selecting a set of exemptions that will protect your assets.
A federal means test will determine the type of bankruptcy for which you qualify. The type of bankruptcy for which you file will play an important role in the asset protection strategy. Chapter 7 will discharge some unsecured debts and liquidate some assets, and you may be required to sign agreements reaffirming your debts on assets you do not want to lose. As Chapter 13 is a reorganizational bankruptcy, it is less likely that you will have to forfeit assets during the bankruptcy process.
Regardless of whether you file for Chapter 7 or Chapter 13 bankruptcy, the process may be intimidating. The help of a Massachusetts bankruptcy attorney who understands that asset protection is your primary concern may be invaluable. He or she will strive to protect your assets as you are guided every step of the way. Answers to more questions about personal bankruptcy and asset protection may be found on our bankruptcy website.