If you’re considering bankruptcy, you’re likely aware of how stressful it can be when your finances become unmanageable. Living with too much debt, no way of paying it off, and creditors that constantly harass you takes a serious toll on your quality of life.
Fortunately, help is available when you know where to look. The first step to getting your finances under control in Michigan Center, Michigan, is to contact a Michigan Center bankruptcy attorney to discuss your options.
Choosing Bankruptcy in Michigan Center
Deciding to file bankruptcy in Michigan Center is a major life decision. Although bankruptcy comes with downsides, it can turn out to be the best financial decision you’ve ever made. Bankruptcy gives you the opportunity to turn the page and make a fresh start with your finances. However, it’s not a decision you should make alone.
Although bankruptcy can be the solution to a hopeless financial situation, it’s typically reserved as a last resort. Before you move forward with filing, you want a skilled Michigan Center bankruptcy attorney to thoroughly review your finances.
A lawyer might find that less drastic options, like debt negotiation or consolidation, can effectively resolve your financial challenges. If bankruptcy is the most appropriate option for you, you’ll want to have a skilled lawyer to guide you through the process.
Bankruptcy Options in Michigan Center
If your Michigan Center bankruptcy lawyer advises you that filing bankruptcy is the best path forward, you will still have to choose which type of bankruptcy to file. There are two different filing options for personal bankruptcy: Chapter 13 and Chapter 7. Chapter 7 is only available to those whose income is below a certain amount.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy involves negotiating with your creditors and setting up a debt repayment plan that typically lasts for three to five years. If you successfully make on-time payments for the duration of your plan, your remaining debt is discharged.
One of the key benefits of Chapter 13 is that it doesn’t require that you foreclose on your home. Many people try to avoid filing bankruptcy because they’re worried about losing their house. However, Chapter 13 gives you the opportunity to get caught up on late mortgage payments and retain ownership of your home in Michigan Center.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is an alternative option for personal bankruptcy in Michigan Center. However, to qualify for Chapter 7, you need to pass a means test. This option is only available if your income over the past six months is under a certain amount.
If Chapter 7 bankruptcy is an option for you, the bankruptcy process should only last a few months rather than years. Chapter 7 doesn’t require that you enroll in any sort of repayment plan.
There are limitations, like only being able to file Chapter 7 once every eight years. However, once the process is complete, your debt is discharged, and you can move forward with your life.
Michigan Center Bankruptcy and Debt Discharge
When individuals consider bankruptcy, one of their first questions is to ask exactly which debts bankruptcy can help with. This is an important consideration. Bankruptcy can help discharge most types of consumer debt, but there are limitations. Generally, bankruptcy can help you handle debt such as:
- Credit card debt
- Personal loans
- Medical debt
- Auto loans
- Mortgages
How your mortgage is handled depends on which type of bankruptcy you choose. With Chapter 7, your home is sold, and the proceeds are used to pay back your creditors. If you choose Chapter 13, you’ll be given the opportunity to catch up on your mortgage payments and then continue making manageable payments so you can keep your home.
It’s important to understand that bankruptcy does not clear all forms of debt, particularly debt incurred because of legal reasons. Types of debt that cannot be discharged with bankruptcy include:
- Child support
- Alimony/spousal support
- Fines or restitution in criminal sentencing
- Some types of tax debt
Federal or state income taxes can be included in a bankruptcy. However, other types of tax debt, like payroll tax debt, can’t be discharged through bankruptcy. Student loan debt also cannot be discharged except in special circumstances.
How a Michigan Center Bankruptcy Lawyer Can Help
A Michigan Center bankruptcy lawyer is an invaluable source of advice and support during the bankruptcy process. A lawyer helps you identify whether filing bankruptcy is the smartest path forward.
If it is, they’ll help you understand whether you qualify for Chapter 7 and advise you on which type of bankruptcy is preferable for you based on your goals. For example, suppose that you own a lakefront family property on S. Lakeside Dr. or Napoleon Rd. in Michigan Center.
In a situation like this, maintaining ownership of family land might be a priority, even if you qualify for Chapter 7. Chapter 13 would be preferable, but only if you’re confident of having steady enough income to keep up with the repayment plan obligations for the next few years.
Your Michigan Center bankruptcy attorney helps you understand the pros, cons, and considerations you might not think about if you don’t have experience navigating the legalities of bankruptcy proceedings.
Your lawyer also helps ensure you don’t miss deadlines, requirements, and other obligations. For example, both types of bankruptcy require that you complete credit counseling and debtor education courses. Your lawyer can help you locate these courses and ensure you complete them within the required timeframe.
When to Contact a Bankruptcy Attorney in Michigan Center
Debt doesn’t go away on its own. If you’re struggling financially, it’s better to contact a Michigan Center bankruptcy lawyer as soon as possible. The longer you wait to get help, the further behind in your bills you’ll fall.
If a bankruptcy lawyer is given the opportunity to intervene early, there’s a higher chance they’ll be able to recommend alternative options for getting your finances under control.
Regardless of the state of your finances, waiting to call a lawyer does nothing to help you. Bankruptcy attorneys spend their professional lives helping individuals regain control of their debt. They’re accustomed to seeing all types of undesirable financial situations and will be able to identify how to help with your finances.
Why Choose Marrs & Terry, PLLC
Marrs & Terry, PLLC is a Michigan bankruptcy law firm. Our experienced Michigan Center bankruptcy attorneys have a long track record of helping clients navigate even the most challenging financial situations.
We pride ourselves on our honesty in bankruptcy cases. We won’t sugarcoat our assessment, but instead, we’ll tell you directly the most effective way to take your finances from where they are to where you want them to be.
We’re known for devising creative solutions to challenging financial situations. Our client testimonials give you a chance to hear from our past clients as they describe the life-altering impact our representation had on their finances and their lives.
Speak With a Michigan Center Bankruptcy Lawyer Now
At Marrs & Terry, PLLC, we understand how deeply stressful it is to live with mounting debt and no way to pay it off. If you’re ready to stop collection notices from showing up in the mail and creditors constantly calling, it’s time to take action.
We can help negotiate with your creditors. If filing bankruptcy is right for your situation, we’ll provide notice that you’ve filed so the calls and collection letters stop. Most importantly, we’ll help you fix your finances for good.
Call Marrs & Terry, PLLC, and speak with an experienced Michigan Center bankruptcy lawyer today.