Filing for bankruptcy can be an effective way to regain control of your finances. But if you’re considering bankruptcy, it’s important to understand the options available to you and the long-term implications you’ll face. It’s always best to work with an experienced Eaton Rapids bankruptcy lawyer who can help you smoothly navigate this process while protecting your best interests.
Filing Bankruptcy in Eaton Rapids, Michigan
Declaring bankruptcy can give you a fresh start when you’re overwhelmed by debt. The process can be a long-term one that involves a payment plan lasting for years, or it can be resolved within a few months. If you own a home or vehicle, you’ll likely want to consider how you can file without relinquishing any assets you want to keep.
There are two primary types of bankruptcy available for individuals: Chapter 7 and Chapter 13. While these both facilitate getting personal finances under your control, there are considerable differences between the two.
An Eaton Rapids bankruptcy lawyer will walk you through the process of understanding which options you qualify for and the benefits and downsides of each given your particular circumstances.
Chapter 7 Bankruptcy in Eaton Rapids
Chapter 7 bankruptcy offers the automatic discharge of certain debts. This undertaking can be completed in just a few months, and you won’t have to adopt a debt repayment plan. However, Chapter 7 is only available to those who pass a means test. Under this rule, if your income is over a certain amount, Chapter 7 won’t be an option for you.
The benefits of Chapter 7 are that it’s a short process, and a payment plan isn’t required. The downside is that you usually have to be willing to give up any assets of value, including your family home and vehicles.
Chapter 13 Bankruptcy in Eaton Rapids
On the other hand, Chapter 13 bankruptcy is available to anyone, regardless of income level. Chapter 13 significantly differs from Chapter 7 because, with this type of bankruptcy, you negotiate a repayment plan with your creditors. If you successfully make the expected payments for a period of three to five years, your remaining debt can be discharged.
While this type of bankruptcy is necessary for those who fail the Chapter 7 means test, it continues to be a popular option even for those who do qualify for Chapter 7. Although it entails a much longer process and requires debt repayment, filing for Chapter 13 allows you to remain in control of your finances in a way that other bankruptcy options don’t.
The most popular benefit of Chapter 13 is that it allows you to avoid home foreclosure. Managed correctly, this type of bankruptcy allows you to control your debt without having to worry about losing valued assets like a family home on Brook Street or a burial plot in Rose Hill Cemetery.
How an Eaton Rapids Bankruptcy Attorney Can Help
An Eaton Rapids bankruptcy attorney serves as your guide throughout the process. An attorney will review your case, help you understand fee arrangements, and identify paths to potentially getting your finances back on track.
When you work with an experienced lawyer, they’ll explore all avenues; bankruptcy is not always necessary, after all, and they may be able to help you get your finances under control through alternative methods. If bankruptcy appears to be unavoidable, or it’s your preferred path forward, your lawyer will help you understand your options.
Getting legal help begins by scheduling a consultation with an Eaton Rapids bankruptcy law firm. If you fear that bankruptcy is your only recourse, don’t delay in setting up a consultation.
What to Expect When Filing Bankruptcy in Eaton Rapids
First, an attorney will identify whether you qualify for Chapter 7 bankruptcy. If you do, you’ll have the choice of filing either Chapter 7 or Chapter 13. If you don’t, the latter will be your only option.
Although Chapter 7 bankruptcy is a shorter process that doesn’t involve a payment plan, there are significant benefits to Chapter 13, and you may choose to file for this bankruptcy even if you pass the means test. Doing so allows you to take advantage of benefits like retaining ownership of your home.
Once you’ve identified the option right for you, your attorney will guide you along the way. In addition, they’ll notify your creditors that you’re filing, so you will no longer be harassed about late or missing payments.
While the exact steps required of you depend on which type of bankruptcy you’re filing for, you’ll need to undergo a credit counseling course before your debt is discharged in either case.
With Chapter 7, your debt should be resolved in a matter of months. With Chapter 13, it’s only discharged after you successfully complete three to five years of your repayment plan. Your attorney will advise you throughout the process, helping you understand your obligations and assisting with your case as needed.
When to Call an Eaton Rapids Bankruptcy Lawyer
The decision to file bankruptcy is not a small one, and you may go to great lengths to get your finances in order before finally calling a bankruptcy attorney. Unfortunately, this wait can contribute to your financial situation growing increasingly dire.
If you’re struggling to manage your finances, it’s better to call an attorney sooner rather than later. In many cases, an attorney can recommend alternative strategies, such as debt consolidation or negotiation — allowing you to avoid filing for bankruptcy altogether.
When you’ve delayed getting help with your finances, it’s often much more likely that bankruptcy will be unavoidable. Whatever the state of your finances is, asking for help now is always better than waiting.
Debt won’t resolve on its own, and the sooner you involve an attorney, the easier it is to create an action plan and set it in motion.
Why Choose Our Bankruptcy Law Firm
Marrs & Terry, PLLC, is a bankruptcy law firm serving clients in Eaton Rapids and surrounding Michigan cities. Unlike other law firms, we focus almost exclusively on bankruptcy and similar financial issues. Our skilled Eaton Rapids bankruptcy attorneys have a long track record of devising creative solutions to the unique financial challenges of our clients.
Our firm values honesty and result-oriented representation. When you choose Marrs & Terry, PLLC, you’re choosing a bankruptcy attorney committed to helping you face the realities of your situation and willing to do the work required to help reach your long-term goals.
With decades of experience and a lengthy list of positive client reviews, Marrs & Terry, PLLC, is the right firm to help you navigate your Eaton Rapids debt repayment plan.
Call Our Eaton Rapids Bankruptcy Attorneys Today
If you’re feeling overwhelmed by your finances in Eaton Rapids, Michigan, you don’t have to face your circumstances alone. The skilled bankruptcy attorneys at Marrs & Terry, PLLC, have a long track record of successfully helping clients turn the page on financial woes. Our attorneys are available to review your current situation, advise on whether bankruptcy is right for you, and help you navigate the process from start to finish.
Don’t wait to get help with your finances. Contact Marrs & Terry, PLLC, today to schedule a consultation with an experienced Eaton Rapids bankruptcy attorney.