Chapter 7 or Chapter 13 Bankruptcy?

Posted by Michigan Bankruptcy Law Firm on June 30, 2010 · 1 Comment

Bankruptcy is a course of action provided by Federal Law created to give you with a fresh start free from unwanted creditor phone calls, lawsuits, repossessions and garnishments. It is a freedom given to you under the United States Constitution. It is an exceptionally powerful law for the reason that it forces your creditors to completely wipe out your debts (chapter 7) or to accept a repayment program which you have suggested (chapter 13).

Ought to I file for Bankruptcy?

Financial difficulties lead to tremendous stress and can affect one’s personal and family relationships, but lots of individuals are worried at the idea of needing to file for bankruptcy protection. This is really what your creditors want you to feel. They do not want you to employ your right under the law. They would much rather you pay the minimum monthly fee for the rest of your life.

Will I forfeit my Property?

As long as you notify the court what exactly you own and what you think it’s worth, the law will let you to keep your property as the basis for your “fresh start” subject to certain restrictions. The rules is incredibly generous in permitting you to exempt your home equity, automobiles, household goods and furnishings, clothing, jewelry, bank accounts, stocks and bonds, pension and 401k plans, etc. The most essential thing to do is make an exact list of what you own and what you think it is worth (at a garage sale or auction.)