If you are thinking of filing for bankruptcy in Michigan, the best thing that you can do right now is to talk to a Michigan bankruptcy lawyer. He can discuss to you your options. A bankruptcy attorney Michigan will also tell you how to prepare should you finally decide to file a case. Moreover, he can tell you the details of bankruptcy laws in Michigan, particularly Chapter 13 and Chapter 7 Michigan law, and details on filing bankruptcy in michigan. These are basically the two most common personal bankruptcy laws applicable for individuals.
Chapter 7 Michigan law allows you to discharge your debts and start anew. In this, a trustee shall sell your assets and then pays your debtors. Not all debts can be discharged so this is one of the things that an attorney will discuss to you. Examples of these are child support, student loans and others. At the same time, there are secured debts that you can keep, such as your house and your car. It all depends on your situation and how the lawyer fights for your case. The attorney will also discuss with you how you shall pay for these secured debts. In other words, although you can keep your car, for example, under the Chapter 7 Michigan law, you will have to pay for them. Also, under the Chapter 7 Michigan law you cannot discharge it again. You will have to pay for it until you have completed the payment.
There are many advantages to filing for Chapter 7 Michigan. First is that some of your debts will be discharged. This will allow you to start financial recovery faster. Second, you are now free from the collection efforts and harassment from your creditors. Third, anything that you earn after filing for bankruptcy shall be yours to keep. Your creditors cannot touch them. On the other hand Chapter 7 michigan also has several disadvantages. One of them is that your properties will be taken from you. It is up to the court whether it will allow you to keep your secured assets. And when it comes to foreclosure, Chapter 7 Michigan law offers only a temporary defense. Eventually you will have to pay your mortgage or your home will be foreclosed.
Chapter 13 bankruptcy Michigan law on the other hand allows you to settle your debts in your terms. You can propose a payment plan to your creditors to pay your debts in full or pay only part of it. Unlike the Chapter 7, under Chapter 13 you can keep your properties. So for your car for example, you can keep it and pay it in reduced amount. In fact, one of the advantages of Chapter 13 is that when it comes to foreclosure, you can keep your house as long as you pay the agreed amount or meet the terms of the agreed plan.