Accumulating unmanageable levels of bad debt takes time. You only need to charge your credit card a few times, get car financing, buy a big house and fail to make your monthly payments. It is usually the lack of financial discipline that forces people into bad debt. However, loss of a job, temporary or permanent disability and change of circumstances can also be blamed for the problem. Fortunately, you can hire a Michigan bankruptcy attorney to help you out when you are unable to meet your debt obligations.
Debtors have access to three types of bankruptcies. These are chapters 7, 11 and 13. Chapter 7 is available to both individual and corporate debtors. It provides for liquidation of property to recover funds to pay off debts. The second is chapter 11, which is basically debt restructuring for businesses. The last option is chapter 13, which is similar to chapter 11, but it is meant for individual debtors.
Of all the different forms of bankruptcies, chapter 7 is the most punitive, especially if you have a lot of property. However, all the other options also have serious consequences or shortcomings. Before making a decision, therefore, you need to check all the pros and cons to ensure you make a decision that you will not live to regret.
In a chapter 13, the debtor is required to make a repayment plan to offset their debts. If accepted by the court, the debtor only needs to make monthly payments throughout the bankruptcy period to offset their debts. All unpaid debts after the bankruptcy period lapses are written off and no assets are sold. This is the main benefit of this chapter.
When filing a chapter 11, the management of a business or organization is required to formulate a repayment plan for their debts. Once the plan has been certified by the court, the business only needs to forward the monthly payments to the trustee. After the prescribed period lapses, all unpaid debts will be written off, thereby freeing the debtor from bad debts.
There are many types of debts that cannot be forgiven, so you need to check your bad debts to see if becoming bankrupt is a wise move. For example, if student loans, child support and spousal support back-payments and taxes form 70 percent of your outstanding debts, it may not make much sense to become bankrupt since you will still have a huge debt burden.
When looking for an attorney to hire, there is one important thing that you should pay attention to - experience. The years of experience of the attorney as well as the number of cases handled should be checked. Be sure to also check the number of similar cases the lawyer has handled in the recent years.
Since you are already in money problems, be sure to choose an affordable legal services provider. Do not hire the most expensive lawyer just because you need competent legal counsel. After all, there are many competent lawyers who charge reasonable rates. Therefore, you should do your research prior to making a decision.
Debtors have access to three types of bankruptcies. These are chapters 7, 11 and 13. Chapter 7 is available to both individual and corporate debtors. It provides for liquidation of property to recover funds to pay off debts. The second is chapter 11, which is basically debt restructuring for businesses. The last option is chapter 13, which is similar to chapter 11, but it is meant for individual debtors.
Of all the different forms of bankruptcies, chapter 7 is the most punitive, especially if you have a lot of property. However, all the other options also have serious consequences or shortcomings. Before making a decision, therefore, you need to check all the pros and cons to ensure you make a decision that you will not live to regret.
In a chapter 13, the debtor is required to make a repayment plan to offset their debts. If accepted by the court, the debtor only needs to make monthly payments throughout the bankruptcy period to offset their debts. All unpaid debts after the bankruptcy period lapses are written off and no assets are sold. This is the main benefit of this chapter.
When filing a chapter 11, the management of a business or organization is required to formulate a repayment plan for their debts. Once the plan has been certified by the court, the business only needs to forward the monthly payments to the trustee. After the prescribed period lapses, all unpaid debts will be written off, thereby freeing the debtor from bad debts.
There are many types of debts that cannot be forgiven, so you need to check your bad debts to see if becoming bankrupt is a wise move. For example, if student loans, child support and spousal support back-payments and taxes form 70 percent of your outstanding debts, it may not make much sense to become bankrupt since you will still have a huge debt burden.
When looking for an attorney to hire, there is one important thing that you should pay attention to - experience. The years of experience of the attorney as well as the number of cases handled should be checked. Be sure to also check the number of similar cases the lawyer has handled in the recent years.
Since you are already in money problems, be sure to choose an affordable legal services provider. Do not hire the most expensive lawyer just because you need competent legal counsel. After all, there are many competent lawyers who charge reasonable rates. Therefore, you should do your research prior to making a decision.
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Find a summary of the benefits of consulting a Michigan bankruptcy attorney and more info about an experienced lawyer at http://www.hashleylawplc.com right now.
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