Michigan Bankruptcy Law Centers specialize in helping clients through every step of the bankruptcy process. Our experience in bankruptcy law and procedures helps to ensure that your rights are protected. When seeking the help of a bankruptcy attorney in Livingston County or Washtenaw County, it is important that you consider hiring the services of an attorney with experience and expertise in all aspects of bankruptcy law.

Monday, July 25, 2016

Reasons Behind Filing For Bankruptcy

Why do people end up filing for bankruptcy?  This is a question that is often posed to bankruptcy attorneys and the answer people expect to get back is that people just aren’t responsible with their credit cards.  This however, more often than not, is not the reason people end up faced with the option of bankruptcy.  In fact most people that are facing bankruptcy dread being there.  It isn’t a decision that has been made freely.  In fact, most people are almost forced into it after spending months on end of harassing calls from creditors and such.
One of the most commonly seen explanations for people looking into bankruptcy is because of illness or disability.  When a family member becomes ill the entire family has to adjust.  This may mean that the family is left without the same budget that they have become accustomed to.  An illness can fall on a parent or child contributing to a change in income.
Not only does the expense of medical care come into play but the loss of income when time off is needed to provide care.  This leaves many families falling behind on bills as payments that were being made were based off of the excepted income to stay the same.   This is a common development that bankruptcy attorneys see in family’s seeking debt relief under federal bankruptcy.
Another common reason that people find themselves filing for debt replied is unemployment.  When individuals are out of work and unable to find a source of income it becomes pretty difficult to pay your bills.  Often what we see is that people will go a period of time without a job and begin to fall short on paying their bills.  As payments start to add up, even after a person does find employment it is difficult to dig them out of the hole they have found themselves in.  For instance, a thirty thousand dollar debt at twenty percent interest is difficult at best to pay off when making only forty five thousand a year.  The debt starts to become overwhelming and leads to desperation.
About thirty percent of people that are going through bankruptcy have also divorce within the past five years.  The ramifications of a divorce aren’t often felt till a few years after the dust has settled on the process as a whole.  This is especially true of women who find they are raising children in a single parent home collecting less than needed to live and raise children.  They begin to fall back on the old standby of payday loans, credit cards and personal loans.  Eventually this catches up to them and they find that there is nowhere else to turn.
There are a number of myths that surround individuals finding they are at need to look into bankruptcy debt relief.  Don’t fall victim when it comes to categorizing things in a simplistic manner.  Most people going through bankruptcy are doing so because they are all out of options and they have nowhere else to turn.
Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Misconceptions Surrounding Bankruptcy

There are several misconceptions surrounding bankruptcy and the individuals who seek the relief it can offer.  The biggest one of them is assuming that all individuals who are seeking financial reprieve through bankruptcy have done so because they couldn’t fight the urge of credit card spending.  This however, is not the case for many of the people that find that they are in need of filing bankruptcy.  Here’s a look at some of the other folklore surrounding bankruptcy.
Individuals that file for bankruptcy are financially irresponsible: Although there are some cases in which individuals need to file for bankruptcy because of their own financial irresponsibility this is not always the case.  It is more likely that an individual finds themselves in this situation because of one of the following events: job loss, divorce or illness.
Bankruptcy clears away all past debts: If you are looking for a be all to end all for debts, bankruptcy is not where you will get it.  Not all debt can be cleared away when filing for bankruptcy.  Several, including alimony, child support, restitution from a crime, tax debt and student loan expenses are just a few of the debts that cannot be expunged.  Although bankruptcy does give individuals a fresh financial start it does not completely clear you from all of your outstanding debt.
It’s a good idea to spend with reckless abandonment before bankruptcy:  People should not assume that just because they are about to file for relief that they can max out their current credit.  In the eyes of the court, this type of behavior is seen as fraudulent.  Many times the debt that is racked up in the ninety days before your discharge will need to be paid back.  You will not get away with spending recklessly and expecting it to be discharged.
Bankruptcy permanently ruins your credit: Although it is more difficult to obtain credit in the months after you have filed for bankruptcy it is not impossible.  Most bankruptcy attorneys and financial advisors recommend obtaining a secured credit card when you first are relieved of your debt through bankruptcy.  A secured credit card can be obtained through a bank or other financial institution.  This type of credit card requires a bank deposit to be drawn against.
If you are considering bankruptcy to get relief from debt that is piling up and creditors hounding there are still some things to think about.  First is the expense of filing for bankruptcy.  Hiring an attorney to represent you in filing for bankruptcy is the best option.  This can cost between nine hundred and fifteen hundred dollars depending on your attorney and the area in which you reside.
It is also crucial to consider the difference between chapter 13 bankruptcy and chapter 7.  In chapter 13 bankruptcy the court will assist you in reorganizing your debt and you will be in charge of paying expenses, like your house payment and such while living very modestly.  Chapter 7 discharges certain debts but in doing so you could have to sell secured assets to assist in paying some of your debt back.  Talk with a local bankruptcy attorney to see what option is the best for your situation.
Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.