Southfield Michigan Bankruptcy Lawyers

Posted by Michigan Bankruptcy Law Firm on March 8, 2010 · Leave a Comment

Pursuant to the Bankruptcy Abuse Prevention and Consumer Coverage Act of 2005, men and women who arrange to file for bankruptcy coverage, with limited exceptions, need to get credit advising from a government-approved institution within six months before they file. They also need to carry out a debtor education training course from an approved service to have their credit card debt discharged.

Bankruptcy is a proceeding in a federal court whereby an financially troubled debtor’s assets are liquidated and the debtor is relieved of further liability. Chapter 7 deals with liquidation, while Chapter 13 deals with reorganization. If you have inquiries with regards to bankruptcy, you should seek the guidance of a licensed bankruptcy law firm.

Chapter 7 bankruptcy is when the court appoints a Trustee who may liquidate or sell some stuff that you own to give your creditors. Most of your debt will be terminated, but you may determine to pay off some creditors, usually to keep a car or home in which the creditor has a lien.

Chapter 13 bankruptcy is when your debt is reorganized into a single monthly transaction. The payment will continue for 36 to 60 months. In no case may a prepare provide for payments over a period longer than five years. You do not have to repay all of your debt. You pay only as much as you can manage to pay for, but the minimum payment may be affected by property you want to keep. When you complete the payments, debt not paid is dropped.
Advantages and Disadvantages of filing for Bankruptcy

Filing bankruptcy does not necessarily stop all credit card debt, and often simply restructures existing credit card debt – this leaves you liable for all future payments. Filing bankruptcy also stays with you for up to 10 years and you may have problems getting any type of loan. Bankruptcy is public record and will be reflected on your credit report but not for good. Speak to one of our credit advising experts if you need help.

Anyone who is contemplating bankruptcy needs to fully comprehend the process and the laws surrounding bankruptcy. Questions about bankruptcy should be addressed by a licensed bankruptcy attorney at law. There are alternate options to bankruptcy and you can avoid bankruptcy with outside help. It is crucial to get early help about bankruptcy if you are hoping to use the bankruptcy process to save your home or your car.