Learning About The Different Michigan Bankruptcy Options
There are two main types of personal bankruptcy you can file for, Chapter 13 and Chapter 7. You might be in a position where you owe people money, your bills keep piling up, you credit is maxed out and you can’t see the light at the end of the tunnel. Understanding the types of bankruptcy that exist is a good first step in exploring this option for yourself.
Folks filing for bankruptcy will file either Chapter 7 or Chapter 13. Chapter 13 involves working out a payment plan with your creditors to pay back the debt you owe. In Chapter 7 bankruptcy, you will sell your property, that is not exempt, to pay back your creditors. After speaking with a bankruptcy attorney, you can decide which type will be the best for your situation.
Chapter 7 bankruptcy is the most common type of personal bankruptcy filed. Almost 68% of all personal bankruptcy filings are Chapter 7. The Chapter 7 process can be wrapped up in under 6 months in most cases after the initial filing. This makes it a good way to put things behind you and start fresh.
Chapter 7 bankruptcy is an option for individuals that can sell their nonexempt property and then use the money they make to pay off debt. After speaking with a MA bankruptcy attorney, you can decide if Chapter 7 bankruptcy is your best option.
Chapter 13 bankruptcy is a way of working out a repayment plan to pay off your creditors. You are going to be restructuring your debts. Chapter 13 might be a good fit for you if you own valuable property or make too much money to be eligible for a Chapter 7 filing. Often when you file for Chapter 13 bankruptcy, debts and interest accruing will be reduced. A repayment plan is established usually in the 3-5 year range.
If you need more time to pay off your debt and have an income coming in, Chapter 13 may be a fit for you. Speaking with an attorney will be a good way to go over this option and see if it is a fit.
Our Detroit chapter 7 attorneys take pride in representing consumer debtors. Banks and medical practices are making gigantic profits by using government force to impose their agendas. The table is lopsided in their favor. Contact us to learn what our Our Detroit chapter 7 attorneys have to say about your debt issues.
