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.
There are three bankruptcy chapters available to debtors. The first is chapter 7, which provides for liquidation of assets to pay off debts. This option is available to both individual and corporate debtors. Other chapters include; chapter 11, which provides businesses and other organizations with debt restructuring. Chapter 13, provides individual consumers with debt restructuring.
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 debt restructuring under chapter 13, the debtor is required to make a plan to pay off debts over the stipulated period of time. By making these small payments, the debtor will become debt free in a couple of years. This is because all unpaid debts after the period will be forgiven. The beauty of this chapter is that no assets are sold, and the payments are convenient for the debtor.
In a chapter 11, the management of the business or organization need to come up with a plan to repay the debt with convenient monthly payments. Once the repayment period lapses, all unpaid debts will be written off. This means that the business will be able to get a fresh start and start rebuilding their brand free of bad debts.
Consumers should know that student loans, child support and taxes are debts that cannot be forgiven through bankruptcy. These debts must be paid off fully. In fact, child and spousal support can only be amended through a family court while student loans can only be forgiven if the borrower dies. Therefore, you should keep these facts in mind when seeking to become bankrupt.
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 financial problems, you should not hire a lawyer whose services you cannot afford. For this reason, you should take your time to obtain a quote from a number of lawyers and pick the most affordable one. However, you should not compromise on quality just because you want cheap legal services.
There are three bankruptcy chapters available to debtors. The first is chapter 7, which provides for liquidation of assets to pay off debts. This option is available to both individual and corporate debtors. Other chapters include; chapter 11, which provides businesses and other organizations with debt restructuring. Chapter 13, provides individual consumers with debt restructuring.
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 debt restructuring under chapter 13, the debtor is required to make a plan to pay off debts over the stipulated period of time. By making these small payments, the debtor will become debt free in a couple of years. This is because all unpaid debts after the period will be forgiven. The beauty of this chapter is that no assets are sold, and the payments are convenient for the debtor.
In a chapter 11, the management of the business or organization need to come up with a plan to repay the debt with convenient monthly payments. Once the repayment period lapses, all unpaid debts will be written off. This means that the business will be able to get a fresh start and start rebuilding their brand free of bad debts.
Consumers should know that student loans, child support and taxes are debts that cannot be forgiven through bankruptcy. These debts must be paid off fully. In fact, child and spousal support can only be amended through a family court while student loans can only be forgiven if the borrower dies. Therefore, you should keep these facts in mind when seeking to become bankrupt.
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 financial problems, you should not hire a lawyer whose services you cannot afford. For this reason, you should take your time to obtain a quote from a number of lawyers and pick the most affordable one. However, you should not compromise on quality just because you want cheap legal services.
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