Filing bankruptcy is a path many people go to great lengths to avoid. However, bankruptcy can be a beneficial way to take charge of your finances once and for all. If you’re struggling with debt in Vandercook Lake, Michigan, it might be time to speak with a Vandercook Lake bankruptcy lawyer about your options for debt management.
Dealing With Financial Challenges in Vandercook Lake
If you’re considering bankruptcy, you might know a thing or two about overwhelming debt and creditors who never stop calling. When you can’t manage your debt, it takes an incredible toll on your quality of life.
Picking up the phone and calling a Vandercook Lake bankruptcy law firm is the first step in taking charge of your finances and building a better future.
When your bills are more than you can keep up with, bankruptcy may feel like the only option. Often, this isn’t true. The first thing a bankruptcy lawyer will do is review your finances and identify whether bankruptcy is the wisest strategic move for getting your finances under control.
In many cases, individuals who think they have no choice but to file bankruptcy are surprised to discover that alternative options, such as debt consolidation or negotiation, can effectively resolve their financial issues without having to file for bankruptcy.
If your attorney thinks that filing is the best path forward for you, they’ll walk you through the options and how to proceed.
Types of Vandercook Lake Bankruptcy
The U.S. Bankruptcy Code outlines several different types of bankruptcies. These are designed for various entities, such as individuals, companies, and municipalities.
There are only two options for filing personal bankruptcy — Chapter 7 and Chapter 13. Chapter 13 is available to any individual, while Chapter 7 is only available to those whose income is below a certain level.
Both types of personal bankruptcy only allow for the discharge of certain types of debts. The most common include credit card debt, loans, and medical debt.
Debt discharge is not an option for all forms of debt during bankruptcy. Specifically, outstanding debt related to child support, alimony, and unpaid taxes cannot be discharged.
Discharging student loan debt is sometimes possible, but it can be challenging. You must prove student loan debt poses an undue hardship, and it requires going through an additional process called “adversary proceeding.”
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the shorter, simpler bankruptcy process. The entire process typically takes a few months. In this form of bankruptcy, all nonexempt assets are sold off, and the money is used to pay off your debtors.
While it’s possible to retain ownership of certain exempt assets, Chapter 7 typically results in the loss of your higher-value assets, including your home in Vandercook Lake.
Once this process is complete, your remaining debts are discharged, and the process is complete. Chapter 7 doesn’t involve any sort of repayment plan. However, individuals must pass a means test before they qualify for Chapter 7. If your income over the past six months is over a certain amount, you won’t qualify for Chapter 7.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy does not require a means test, meaning this is the one form of personal bankruptcy available to any individual.
Unlike Chapter 7, it doesn’t involve liquidating your assets to pay off debt. Instead, Chapter 13 involves setting up a debt repayment plan that lasts three to five years. If you consistently make your payments over this period, your remaining debt can be discharged.
Chapter 13 requires some debt repayment and takes much longer than Chapter 7. However, it offers benefits that make it worth considering, even for those who qualify for Chapter 7.
One of the key benefits of Chapter 13 is that it doesn’t require foreclosing on your home. For example, if you have a home in The Grande Estates and you’re determined not to lose it, you’ll be allowed to catch up on late mortgage payments and retain ownership of your Vandercook Lake home.
Choosing the Right Type of Bankruptcy
It’s best to consult an experienced Vandercook Lake bankruptcy attorney about which type of bankruptcy is right for you. First, you’ll need to take the means test to identify whether Chapter 7 is even an option in your situation. If it is, your attorney will help you understand the pros and cons of each option, given your circumstances.
The form of bankruptcy you choose depends heavily on your personal goals and current and future income. If you have a family home off Francis St. in Vandercook Lake and the primary goal is to keep the home in the family, Chapter 13 would be ideal.
However, you must also consider your ability to comply with the Chapter 13 debt repayment plan. If health conditions, age, or other factors make it unlikely that you’ll be able to earn steady, sufficient income over the next several years, Chapter 7 would likely be a better option for you.
Why You Need a Vandercook Lake Bankruptcy Lawyer
Bankruptcy is a complex legal process, regardless of which type you choose. It’s a mistake to try filing for bankruptcy without a Vandercook Lake attorney. Your lawyer provides invaluable advice and guidance through all stages of the bankruptcy process.
An attorney helps you identify whether bankruptcy is necessary and which type of bankruptcy is best given your situation. They also advise you on exemptions that allow you to retain ownership of certain assets and communicate with your creditors, helping ensure any harassment stops once the bankruptcy filing is underway.
Your lawyer helps ensure you fully understand all aspects of your obligations, like setting up a repayment plan under Chapter 13.
Both types of bankruptcy also require that you undergo a credit counseling course before filing bankruptcy and debtor discharge education before your debt is discharged. You’ll receive certificates upon completion, which will be needed before filing and before debt discharge.
Your Vandercook Lake bankruptcy attorney will help you better understand these requirements and advise you on where you can take these courses near Vandercook Lake, Michigan.
Why Choose Marrs & Terry, PLLC
Marrs & Terry, PLLC is a law firm dedicated exclusively to bankruptcy law. Our dedicated bankruptcy attorneys possess decades of experience helping individuals in Vandercook Lake and surrounding Michigan cities navigate personal financial challenges and create a plan for making overwhelming debt a thing of the past.
Our client testimonials showcase the life-altering impact we’ve had in the lives of clients who needed help creating a brighter future in the area of personal finances. We’re a results-oriented team that gives you an honest assessment and identifies practical, effective options for getting your debt under control.
When it’s time to choose a bankruptcy law firm, you won’t regret hiring Marrs & Terry, PLLC.
Consult a Vandercook Lake Bankruptcy Attorney Today
If you’re thinking about filing bankruptcy in Vandercook Lake, Michigan, Marrs & Terry, PLLC is ready to help. As a bankruptcy law firm, we’re dedicated to helping individuals navigate financial challenges and identify the best path forward.
We understand how stressful it can be to make the decision to move forward with bankruptcy, and we want you to know you’re not alone.
Contact Marrs & Terry, PLLC to set up a discussion with an experienced Vandercook Lake bankruptcy attorney.