Bankruptcy Attorneys Serving Clinton
Many people associate filing for bankruptcy with financial ruin. As a result, there’s a significant social stigma around the practice. That’s unfortunate — for many people who declare bankruptcy, doing so is their ticket to getting free from bad debts and starting to move toward a financially healthy future.
For some people, bankruptcy is the best way to move on after facing financial challenges. However, the process itself is significantly more complicated than many people realize.
If you want to make sure your bankruptcy filing is done correctly and that your rights are protected during the process, you need a bankruptcy attorney to help. At Marrs & Terry, PLLC, we’ve helped countless people in your situation find a new sense of freedom and peace of mind.
Should I File for Bankruptcy?
No two people have the same financial situation, and the only way to know for sure whether bankruptcy is your best option is by talking to a bankruptcy attorney. However, people filing for bankruptcy frequently do so because they’ve run into significant financial issues that likely won’t be resolved without some kind of intervention.
If you’re facing any of the following problems, it may be worth considering bankruptcy:
- You have more debt than you can repay
- Your home is in danger of foreclosure
- You’re facing debt lawsuits from creditors
- You need to borrow money to pay your debts
- You can’t pay for necessary living expenses without relying on credit cards
- You’ve tried other debt resolution methods, and they didn’t fix the problem
You also should consider what types of debt you’re looking to discharge. Many people mistakenly think that when they declare bankruptcy, all of their debts will simply be wiped away.
This can happen with unsecured debt (like credit card debt) when you declare Chapter 7 bankruptcy. However, bear in mind that there are several categories of debt that can’t be discharged in bankruptcy, including:
- Spousal support/alimony
- Child support
- Debts owed because you injured someone while driving under the influence
- Student loan debt
In limited circumstances, student loan debt may be able to be discharged in bankruptcy. For this to happen, your attorney must file something called an “adversary proceeding,” which is essentially a request for the court to find that continuing to pay on your student loan would pose a financial hardship.
In some cases, your whole student loan will be completely or partially discharged. Your loan also may be restructured in a way that makes repayment easier. This is often done by lowering the interest rate.
What Are the Different Types of Bankruptcy?
There are several kinds of bankruptcy, and each one is named after a chapter in the United States bankruptcy code. However, for individuals filing for bankruptcy, the two relevant types are Chapter 7 and Chapter 13. Here’s a quick look at each.
Chapter 7
This is the most common type of bankruptcy. It’s frequently referred to as “liquidation” or “straight bankruptcy.” When you declare Chapter 7 bankruptcy, your creditors can seize and sell certain “non-exempt” assets. Some assets are “exempt,” meaning they cannot be taken and sold.
Usually, a certain portion of your home equity and the value of your car are exempt. So are basic household appliances and goods. However, if their value exceeds a certain threshold, some of them may not be exempt.
Under Chapter 7 bankruptcy, most unsecured debts can be completely discharged. Because many kinds of assets can be seized and sold (and because many kinds of consumer debt can be discharged), Chapter 7 bankruptcy is usually considered to be a good choice for someone with substantial debt and few assets.
Chapter 13
Chapter 13 bankruptcy is sometimes called “reorganization” bankruptcy. It doesn’t completely wipe out unsecured debts like Chapter 7 bankruptcy does. Instead, it involves creating a structured repayment plan that lasts from three to five years.
In many cases, if you haven’t completely repaid a debt after making the agreed payments over those three to five years, it will be discharged. The main advantage of Chapter 13 bankruptcy is that it allows you to keep your home or vehicle if you’ve fallen behind on payments. You must file before your home is officially foreclosed on, though.
How Can a Bankruptcy Attorney Serving Clinton Help?
Some people may be tempted to try to file for bankruptcy alone. However, having a bankruptcy attorney is absolutely essential if you want to make sure your bankruptcy is done right. Here’s a look at how an attorney can help you.
Determining Whether Bankruptcy Is the Best Option
As bankruptcy attorneys, we’re committed to helping our clients work toward financial wellness. Sometimes, that means helping them decide between Chapter 7 and Chapter 13 bankruptcy.
Other times, it means determining that bankruptcy may not be the right choice for them. When you work with an attorney, you can go forward confidently because you know you’re taking smart steps toward a brighter future.
Making Sure Documents Are Filed Properly
One of the most important parts of the bankruptcy process is making sure all necessary forms are filled out properly, filed with the right court, and filed on time. Just like with many other kinds of legal issues, if even one form is filed wrong, you may need to restart the entire bankruptcy process.
In Clinton, bankruptcies are handled by the United States Bankruptcy Court for the Eastern District of Michigan. Because the bankruptcy attorneys at Marrs & Terry, PLLC, handle bankruptcy filings on a daily basis, you can count on us to ensure that everything is filed in the right place and at the right time.
Developing a Clear Strategy
The bankruptcy process is more complex than people tend to realize. There are critically important decisions to be made at each step of the process, including the following:
- Should you try to keep your car?
- Should you keep paying creditors after starting the filing process?
- How do you handle the tax consequences of filing for bankruptcy?
These questions can be overwhelming, but bankruptcy attorneys have been through them all countless times before. We’ll help you make sense of your options and build a strategy for success.
Helping You Understand the Process
Never underestimate a bankruptcy attorney’s ability to give you peace of mind. Bankruptcy can be disorienting and confusing. While it’s of course important to have your attorney there to file documents and represent you, it’s also crucial to have the guidance and reassurance you can only get from an experienced bankruptcy lawyer.
Need a Bankruptcy Attorney Serving Clinton? We Can Help
Bankruptcy can be a very stressful process, and it’s also a highly individualized one. At Marrs & Terry, PLLC, we really take the time to see you as a person — not just a case.
Are you hoping to wipe out as much debt as you possibly can without having to sell off assets? Do you have a beautiful home on the River Raisin that you’re hoping to keep? We’ll talk to you about your goals and help you carry out the right plan to achieve them.
If you’re ready to take the first step toward a better financial future, we’re here and ready to help. Call our office or get in touch online today to schedule a consultation.