Bankruptcy: When There Is No Where Else to Turn For Debt Relief

You have hit the point where there is nothing else you can do, bankruptcy is the only way out of the financial avalanche that is weighing you down.  You tried cutting back, you sold what you could, you have been working day in and day, and still find that you are not making a dent in your debt let alone continue to live a feasible lifestyle.  It is a conclusion that no one wants to get to because it comes with the stigmatism of failure.  The shame that comes with filing bankruptcy maybe real to you, it may be what you are feeling and experiencing however, you should know that there is no disgrace in finally deciding that you need help.  This help can make all the difference in your future.  A future that your past self wasn’t considering when mismanaging income vs debt.
Filing for bankruptcy can be quite confusing.  It is a very serious legal matter that should only be done with proper representation from a bankruptcy attorney.  Here are some things to take into consideration as you take the first steps towards financial freedom.
Bankruptcy is a legal proceeding that puts you in front of a judge where you explain that you can no longer financially afford to pay your debts.  The judge will work with trustees to look into your assets and liabilities to decide if the debt should be discharged or there are means to repay a portion or all of it.  If the court concludes that you cannot payback these debts, they will declare you bankrupt. 
Although bankruptcy can stop foreclosure, repossession, and garnishment of wages it doesn’t cancel all of your debts. Bankruptcy does not clear:

• Student loans
• Government debt: taxes, late fees, and penalties
• Child support
• Alimony
• Expenses purchased right before declaring bankruptcy

Once you have filed the paperwork for bankruptcy, all creditors receive notice that they can no longer take steps to collect money from you.  Creditors will no longer be allowed to call, write, or take legal action of their own against you once the bankruptcy process has begun. 
There are many types of bankruptcy that can be filed both consumer and commercial.  The most common consumer bankruptcies files are Chapter 13 and Chapter 7.
In chapter 13 bankruptcy the court will approve a plan for you to repay some or all of your debt over the span of three to five years.  You will keep all of your assets and follow a strict timeline and monthly payment schedule set forth by the court.
In chapter 7 bankruptcy the court will decide what reasonable assets are vs “luxury” items. Things will be sold to pay off debt if they are deemed over and above what is reasonable.  Once you have paid back as much as is thought to be reasonable the remaining unpaid debt will be erased. 
Bohikian Law Group specializes in bankruptcy services including chapter 7 and 13 bankruptcy. More information can be found at https://bohikianlaw.com.

Five Things To Not Do Before Filing Bankruptcy

Believe it or not there are some things that you should not do before you file for Chapter 7 and 13 bankruptcy.  Finding debt relief in bankruptcy is not as simple as filing a few pieces of paper, appearing before a federal judge and whoosh all of your bills are gone.  There are a lot of considerations that go into the act of declaring bankruptcy and seeking relief from your debt.
One of the first steps to take when considering the different options available to you is to determine your totally debt.  When you are in a situation where you are experiencing stress financially, it may be tempting to do whatever you can to free yourself from that pressure.  However, bankruptcy discharge is a very serious, legal action therefore it is crucial that you understand what is going to happen before, during, and after bankruptcy.

Don’t Rush

Bankruptcy is a federally governed method of debt elimination.  There are limitations on how often you can file for bankruptcy.

• Chapter 7 bankruptcy discharge is something that can only be done once every eight years.
• Chapter 13 bankruptcy discharge is something that can only be done once every six years.

If you are considering bankruptcy due to medical debt but are still experiencing severe health issues it is probably important to wait until your health has stabilized before filing.  The last thing you want to do is to find yourself accumulating more and more debt after you have already discharged your initial debt. There are a number of problems that crop up when bankruptcy comes into view like unemployment, foreclosure, eviction, and car repossession.   It is important to file bankruptcy at a point when you know you are going to be able to get back on your feet once a discharge is granted.  The last thing you want is to have your debt cleared only to find yourself swimming in debt a year later when no relief can be given.

Don’t Wait Too Long

There are times however that bankruptcy can’t wait and that it is in your best interest to file for bankruptcy right away.  If a wage garnishing is in place, it is important to file sooner rather than later so that you have more money to pay bills.  Filing for bankruptcy in a timely manner is also important if a creditor has a lawsuit against you.  Your bankruptcy attorney will want to make sure to look at the complaint to see if it includes any allegations of fraud.  If it does, the matter will go into judgment and you likely won’t be able to wipe out this debt in bankruptcy.

A creditor that has won money in a judgement against you, the lien that accompanies it allows the creditor to take wages directly from your check, attach to your bank accounts, repo cars, and foreclose on your home in an effort to reclaim the money that is owed.  If you file for and receive a bankruptcy discharge before the creditor wins a case against you, filing bankruptcy will stop the lawsuit in its track and wipe out that debt as well.

Don’t Drain Retirements Account

Retirement funds are protected from bankruptcy.  It is important not to withdrawal funds from your retirement accounts in order to pay off debts.  Before taking money from any type of account that is labeled for retirement speak with a bankruptcy lawyer to figure out the best option for you.  Most often you will find that your attorney will recommend that you do not deplete your accounts to better your financial situation.

Don’t Provide Information That Is Inaccurate

It is crucial to be completely open when it comes to your bankruptcy paperwork.  You are required to provide accurate information on your paperwork including your assets, debt, income, expenses, and financial history.  Misrepresenting information could lead to penalty of perjury.

Don’t Add in New Debt or Move Assets

Any debt that is incurred seventy to ninety days before filing bankruptcy paperwork, unless it is a necessity, a creditor may object.  Debt within this time frame may be considered fraudulent. As a rule, don’t take out cash advances or use credit cards to buy luxury items.  It is also critical that you don’t try to hide or move assets for safekeeping before filing for bankruptcy.  If you have sold property to pay for expenses before declaring bankruptcy it will be important to document the way in which you spent the money to pay for necessities.
As with any legal procedure it is important that the rules are followed to prevent any sort of confusion when it comes to discharging your debt.

Bohikian Law Group specializes in bankruptcy services including chapter 7 and 13 bankruptcy.  More information can be found at http://bohikianlaw.com.

What Can You Expect from Your Bankruptcy Attorney?

One of the ways that people get out from under an oppressive debt is through filing for chapter 7 or chapter 13 bankruptcy.  Having debt discharged through bankruptcy can offer many people a great sense of relief.  The process itself however can be quite daunting without hiring a proper bankruptcy lawyer helping your through the process and forms.  When you are seeking an attorney’s assistance with the bankruptcy it is important to find one that offers you: competence, sound legal advice, preparedness, and representation.

Competence

Bankruptcy cases can range from straightforward to utterly complex.  The attorney you hire to handle your bankruptcy should have the skills that you need to have your bankruptcy proceed properly.  Your bankruptcy’s difficulty will range depending on a number of elements including:

• The facts of your particular situation
• The chapter of bankruptcy you are filing: chapter 7 or 13
• The assets that will need to be sold
• The status of employment and business ownership
• The involvement of interested parties

Sound Legal Advice

Once you have established a relationship with a bankruptcy attorney a contract will be signed to specific the working agreement between you and your lawyer. This agreement will state what services you should expect that they will provide vs what you are to provide for yourself.  The first thing that your attorney will discuss with you is whether it is in your best interest to file for chapter 7, chapter 13, or another option.  This decision is based on what makes the most sense for you to achieve your financial goals. Your attorney should also brief you on what you can expect throughout the bankruptcy process along with the difficulties of your unique case.

Preparedness

Your attorney is in charge of making sure all of the paperwork that you need is filed and properly and within the timeline provided for your case.  You are required to disclose proper financial information to your attorney including: income, expenses, assets, and information pertaining to your debt.  Once this information has been received it will be processed and the two of you will review the information before it is filed.
You may be asked for more information by the court or the court’s trustee.  If you or your attorney fail to provide this information in a timely manner and you miss the deadline the following consequences may occur:

• Delay in your bankruptcy proceedings
• Dismissal of your case

Because of the serious nature of the consequences it is critical that the bankruptcy attorney you hire is diligent with paperwork and following required deadlines.

Representation

After the paperwork has been filed and the court has received everything it needs all debtors will be required to attend a hearing known as a 341 meeting of the creditors.  Depending on your case you or the bankruptcy attorney representing you may need to go to other hearings as well.  Your attorney will advise you when you meet with them on what type of hearings you will be required to attend.  Your bankruptcy lawyer should attend all hearings with you.  Some of these can include:

• Chapter 13 bankruptcy confirmation hearing
• Chapter 7 bankruptcy reaffirmation hearing
• Motion/objection hearings

Bohikian Law Group specializes in bankruptcy services including chapter 7 and 13 bankruptcy.  More information can be found at http://bohikianlaw.com.

Costs Involved with Filing Bankruptcy

When you are considering bankruptcy as an option to relieve your financial burdens the last thing you want to be worrying about is how much it is going to cost to hire an attorney and file the necessary paperwork.  After all, money is tight which is the reason you are contemplating this option in the first place.  In this installment we will discuss the fees involved with filing, hiring an attorney, and additional fees you may encounter.

Fees for Filing Bankruptcy

There are many bankruptcy options to choose from but the most popular being Chapter 7 and Chapter 13.   The filing fee for Chapter 7 is $335 and for Chapter 13 is $310.  There may also be a fee charged by the Bankruptcy Trustee which can range between $15 and $20 dollars.  Another fee you may need to cover is the cost for mandatory credit counseling and financial management classes.  These classes can cost upwards of $100 depending on where you are filing for bankruptcy and the options that are available.

Attorney Fees in Bankruptcy

Many people will unsuccessfully file for bankruptcy without the help of an attorney.  Paperwork often is incorrectly filed, the steps necessary are not taken, and many other hiccups plague individuals filing “pro se”, (without the help of an attorney).  The truth is that filing for bankruptcy successfully most often requires the help of a bankruptcy attorney.

Bankruptcy attorneys are responsible for setting their own fees.  On average bankruptcy attorneys charge $1,250 for their services.  This fee varies depending on where you are filing, the complexity of your litigation, your attorneys experience and reputation. The fees for filing Chapter 7 bankruptcy are often less than those found in filing for Chapter 13.  This is most likely due to the extra services that go into filing Chapter 13 such as setting up a repayment schedule and executing automatic payments.

This fee may seem like a lot at the moment.  It is to be assumed that your filing bankruptcy because you are lacking the ability to pay the debt.  When you take into consideration the average debt that is written off in bankruptcy is $15,000 that fee seems relatively reasonable as it takes a large debt down to pennies on the dollar.

Filing for bankruptcy isn’t an option that is easy for individuals to make.  It is one that should be made only after much research and contemplation.
Bohikian Law Group specializes in bankruptcy services including chapter 7 and 13 bankruptcy.  More information can be found at http://bohikianlaw.com.

The Purpose of Bankruptcy

No one ever really wants to file for bankruptcy, but there are times when it can be unavoidable for many.  People will want to file for bankruptcy if they have quite a bit of debt and no way to possibly pay it off during their lifetime.

The main purpose of bankruptcy is to give everyone a fresh start in life without a mountain of debt hanging over their head, while also allowing their creditors to collect at least some of the money that is owed to them.  After paying their creditors the amount that the bankruptcy courts tell them to, they will no longer be responsible for any of their remaining debt to those creditors.

There are six different types of bankruptcy filing options, although, only two of them are meant for regular people.  Chapter 7 bankruptcy will find people liquidating everything that they own to pay off their debts, while Chapter 13 will allow a person to keep their home as they are repaying all their creditors.  However, both options will allow everyone to keep most of their property and assets in the end if they qualify for certain exemptions.

The other four bankruptcy options include Chapter 9, Chapter 11, Chapter 12, and Chapter 15.  Chapter 9 can only be filed by a municipality and basically requests a reorganization process for that area.  Chapter 11 is usually used by commercial organizations as they try to reorganize their assets to pay off debts.

Chapter 12 is the bankruptcy code that farmers and fishermen need to file under if their business is not going well due to circumstances out of their control.  Through this process, a bankruptcy lawyer can help them create a plan to get out of debt within three years, unless the court allows for a longer time frame.

Chapter 15 is for cross-border cases, where the creditor and debtor live in different countries.
Everyone is encouraged to hire a bankruptcy lawyer to assist them through the entire bankruptcy process, so that they can file for the proper chapter of bankruptcy.  After all, the entire bankruptcy system is quite complex and there are many legal terms and phrases that people may not know or understand.  It can be quite easy for a person to get lost in the process, which is why the guidance of a bankruptcy lawyer is always a good option.

Anyone that chooses to not hire a bankruptcy lawyer may find themselves worse than they were before, especially if they need to pay their creditors more than they should in a shorter amount of time.  The goal of bankruptcy is to get out of debt and move on with life, not continue to feel stuck for a longer period of time.

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.

Why Should You File for Bankruptcy?

You are always going to have bills to pay, but what happens if they come in faster than you can pay them, or you are barely paying the minimum payment every month?  You may feel like you are drowning in debt, especially if you need to continue using your charge cards to pay for everyday necessities.
While filing for bankruptcy is never a person’s top choice, you may have no choice but to hire a bankruptcy lawyer, so you can get back on track with your life.  After all, once you have gone through the process and then work hard to improve your credit, you will find that your life is much easier in the future.
An attorney specializing in bankruptcy can walk you through all the steps of the process, starting with whether or not you have a good reason to file.  Your bankruptcy lawyer may even encourage you not to file for bankruptcy if they do not think that you have a good enough reason.
Here are 5 reasons why you should file for bankruptcy:

1. Your Home is in Foreclosure

A bankruptcy will immediately put a stop to the foreclosure on your home.  This is important, even if you are not planning on staying in your home, because you may not need to pay the difference of the unpaid mortgage balance if the proceeds from the sale are not enough.

2. You are Being Evicted

If you happen to rent an apartment or a house, filing for bankruptcy can prevent you from being evicted.  You will still need to catch up on your rent payments, but a bankruptcy can give you a little more time.

3. Your Car is Being Repossessed

Filing for bankruptcy can prevent a lender from repossessing your car if you are behind on payments.  This will allow you to catch up on payments, so you can keep your car.

4. You Have Medical Debt

If you have major medical debt from an illness, you should talk to a bankruptcy lawyer, so you are not responsible for all those bills.  They can give you your options, so you do not lose your home or other assets.

5. You Just Got Divorced

Financial changes occur after a divorce and you may find that it is difficult to live the lifestyle that you are used to with just your income.  If you find yourself in debt after getting a divorce, you will want to speak to an attorney specializing in bankruptcy to see what options you may have.

No one ever wants to have a lot of debt to deal with, but bankruptcy may or may not be your best option.  They only way you will know if you should file is to speak with a bankruptcy lawyer and see what they recommend for the situation that you are in.
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.

Getting Your Financial Future in Order with Bankruptcy

Although we don’t intentionally do it, sometimes we make ill-advised financial moves that lead to bankruptcy. While filing for bankruptcy can provide a reprieve for those who are unable to repay their debts, there are consequences which may affect your future, for instance:

• Bankruptcy may place some restrictions on your employment or running a business
• It doesn’t necessarily release from all debts, and your trustee may sell all your assets
• Your name may permanently appear on the National Personal Insolvency Index (NPII)
• You must inform a credit provider of your bankruptcy when trying to obtain future credit
• While bankruptcy lasts for three years and a day, your trustee can lodge an objection to extend the bankruptcy for up to eight years

Do not be discouraged because there is life after bankruptcy. First, a good bankruptcy attorney can help you in initializing a debt management plan and ensure that you attend credit counseling sessions where you can receive free advice on important steps to take in the future to help you abate the damaging impact of insolvency.

There is no denying that bankruptcy can be a daunting and very emotional decision, however, having a bankruptcy lawyer by your side, he or she can help you find various debt relief options that may be available to you and most importantly, he or she can stop creditors from harassing you. It is also your bankruptcy attorney’s duty to help you negotiate, review and sign any reaffirmation agreements on secured property that you want to keep. Your bankruptcy attorney may appear in further court required appearances on your behalf to satisfy the bankruptcy court’s administrative requirements. While that is happening, consider the following ways of getting your financial future in order after filing for bankruptcy:

• Stick to a budget

If living beyond your means is what may have got you in a bankruptcy pickle, creating and sticking to a realistic budget will help you become extra vigilant about your finances and prevent you from incurring unnecessary debts.

• Set up automatic bill payments

One of the single, most important things you can do to restore your finances and your credit is making it a priority to pay all your current bills on time and offset any existing bills that you may have accrued in the past.

• Get a secured credit card

By obtaining a secured credit card, you start depositing a prearranged amount of money into a bank account, which becomes your credit limit. Charging small amounts each month and repaying your debts as agreed is yet another strategy to rebuild your credit rating after bankruptcy.

• Save

Now that you’re free from most of the debt, it’s up to you to manage your money. Start by building an emergency fund. Also look for financial coaching offered by various financial advisers to help you in managing and keeping your finances in check.
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.

Emerging Financially After declaring Bankruptcy

Can you believe that we are already into the month of April?  How are those New Year’s Eve resolutions working for you; how about those financial resolutions?  Are you rolling your eyes?  Financial hardships can add significant stress to personal hardships.  Perhaps you resolved to pull yourself out of the financial funk left by a recent divorce or foreclosure on your home.  There are many reasons that this might not have been possible for you, a job loss, a significant pay decrease, an extra mouth to feed, and so on can lead to a lack of money needed to pay off existing debts. There are times that personal bankruptcy is the only way out.

An element common to most survivors of going through a bankruptcy is the worry about moving forward and bouncing back financially.  Below you will find several ways to help you get started at getting back on your feet after a financial blow like declaring bankruptcy.
First and foremost, it is important to recognize that bankruptcy does often come with a terrible stigma.  For many of us it has been drilled into our heads that our financial obligations need to be paid under any circumstance.  The simple truth however is that even despite our best efforts there are times when we are unable to pay our debts.

It is crucial that once you have decided you have no other choice but to file for bankruptcy you realize you are in fact not alone.  In fact, the number of cases of bankruptcy has grown significantly over time; 13% of all U.S. citizens have considered it.  With that said, sulking and harboring feelings of failure and disappointment won’t do anything to help you begin to move forward.  Think of the experience as one that you have learned from.  Forgive yourself, meet with a professional in personal finance, and move on from your bankruptcy; the bankruptcy does not define who you are.
Start by creating a fund that is set aside specifically for use after the loss of a job.  This fund should consist of enough money to cover all your expenses, both essential and not, for at least 6 months.  It can take a significant amount of time to find a new job and the last thing that is needed during this situation is the financial stress of not being able to pay your bills.

As previously mentioned, seek the help of a professional who specializes in personal finance.  Learn to make smart financial investments and budget spending.  The creation of a detailed financial plan can help you stay on track towards a healthy financial future while continue to live comfortably.  Begin to slowly re-establish your credit.  Eventually, everyone ends up needing some type of credit.  Most of us will never be able to come up with the amount of money it takes to purchase a house.  Also, if we do have that type of cash it is more likely going to make you more investing than it is paying cash for a home.  A good credit score can occur even after declaring bankruptcy; it just takes time and patience.

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.

When Chapter 13 Bankruptcy Is Better Than Chapter 7

If you’ve reached the point where you’re swimming in debt and can’t pay your bills, you may be wondering which type of bankruptcy is best. You may need a Chapter 7 bankruptcy lawyer or a Chapter 13 bankruptcy attorney. There are differences between each type.

Bankruptcy is never a simple process in the United States. Each type depends on your current income, assets, debts, and future financial goals.

Chapter 7 bankruptcy is a type of liquidation bankruptcy that will clear out any unsecured debts you may have, including medical bills, and credit card balances. To declare Chapter 7 bankruptcy, you must currently have no income or little income. If you make over a certain amount of money, you’ll automatically have to claim for Chapter 13 bankruptcy.

Chapter 13 bankruptcy is a type of reorganization bankruptcy. You must have a regular income and be able to pay back a portion of your debts through a repayment plan. There can be many benefits for filing for this type of bankruptcy than Chapter 7.

Chapter 13 bankruptcy will allow you to catch up on your missed mortgage payments. It may also allow you to clear unsecured liens on your house. This means that you will be able to keep your house, unlike filing for Chapter 7 where you can lose your property. You may also keep your nonexempt assets. How it works it that you pay back all or a portion of your debts through a repayment plan. This plan is based on your current income against expenses, and what types of debt you may have. Therefore, it’s commonly referred to as “reorganization bankruptcy”.

Another benefit is that Chapter 13 will allow you to get caught up with car loans without losing your car, and to pay off other non-dischargeable debts including alimony or child support arrears. In order to hire a Chapter 13 bankruptcy attorney, you must be an individual and not a business. For Chapter 13, you must not have more than $394,7255 of unsecured debt or $1,184,200 of secured debt. While the discharge is a lot longer with Chapter 13 than Chapter 7, 3-5 years versus 3-5 months, you’ll receive a full discharge.

It’s important to note that if you own property, Chapter 13 is a lot better than Chapter 7, as debtors will be able to keep all their property, whereas the trustee in Chapter 7 will sell your property to pay off your creditors. Your liens will also be stripped in Chapter 13, whereas in Chapter 7 they are not, leaving you with future debt loads to pay off in the future.

Before deciding which type of bankruptcy is right for you, you should talk to a Chapter 7 bankruptcy lawyer, or a Chapter 13 bankruptcy attorney, to get the best advice that pertains to your financial situation. You may just discover that you do qualify for Chapter 13 and will be able to keep your house and car!

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.

Not All Debts Are Treated Equally When Filing For Bankruptcy

With a struggling economic climate, millions of people file for bankruptcy every year for varied reasons, most notably due to medical expenses, reduced income or job loss. According to US bankruptcy court statistics, personal bankruptcy has increased at an alarming rate and not just as a result of irresponsible spending, but because something like a divorce means taking on a partner’s debt if you had “regrettably” co-signed or opened joint accounts with them.

Filing For Bankruptcy

Unexpected catastrophes can also quickly drain savings that took years to accumulate including mountains of student loans, the rising costs of utility payments, inflation, foreclosure the list is endless. Bankruptcy laws are in place to give people whose finances have collapsed and need a second chance to start over. According to statistics from the American Bankruptcy Institute, nearly 95% of Chapter 7 bankruptcy cases decided in 2016 were discharged, meaning the individual was no longer legally required to pay the debt. But what about the other 4.5%?

If you are contemplating bankruptcy, you should consider discussing your options with an experienced bankruptcy attorney who works on liquidation bankruptcies where most of your debts are discharged or liquidated under bankruptcy law. A bankruptcy lawyer will also help you in compiling all your financial records, including debts, assets, income, and expenses.

The Length of Bankruptcy Process

Once you have filed for bankruptcy, the process usually takes six months or longer to complete, but the good thing is that during this time it triggers the automatic stay that prevents creditors from calling you, suing you, sending you letters, or even repossessing your property.

Items Not Discharged In Bankruptcy

When your petition is accepted, your case is assigned to a court trustee who then sets up a meeting with your creditors that you must attend. But not all petitions are accepted, for example; student loans are not discharged under a declaration of bankruptcy owing to the fact they are funded or guaranteed by the government and students are required to pay them off once they start working.

Another example of a non-dischargeable that can’t be in a Chapter 7 bankruptcy at are debts from a divorce because they are owed to a spouse but not as a domestic obligation. However, they can be included in a chapter 13 bankruptcy provided the debt becomes part of a payment plan, and the overdue payments will be continued and paid in full.

A debt incurred through fraudulent means, including one that was obtained to take advantage of the bankruptcy code, cannot be discharged. Unemployment benefits overpayments that you may be required to repay the excess, tax penalties, fines on speeding tickets and vehicle registration fees will also not be discharged in a bankruptcy.

Also, fees that are considered a priority debt, meaning you owe the federal government or local state in payroll taxes, past tax debts from previous years, current tax liability, any fees or penalties cannot be discharged under a declaration of bankruptcy, therefore, you must make an effort to pay or deal with the IRS directly.

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.

It’s A New Year and Time for You to Get Your Finances In Order

It’s now 2018 and time to get a new start on your life. If your finances have suffered miserably in past years, it’s now a new year and time for you to get your finances in order. Many people have increasing amounts of debt from mortgages, car loans, student loans, medical bills, and credit card debt. Often it can become unmanageable and you can feel like there is nothing to look forward to.  There is help, there is a way to forgive some or all your debts.  A bankruptcy attorney can help facilitate filing for chapter 7 or chapter 13 bankruptcy.

Filing for the Right Chapter

Without the assistance of a local bankruptcy attorney many people end up confusing the two chapters of bankruptcy. To get back on track in life, you should have a solid understanding of what each one offers to your future, and your finances. It can be a serious condition to have to file for bankruptcy, and both can affect your future.  It’s important to file for the one that’s right for you, so you can get back to good finances in the future.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a certain liquidation bankruptcy that is made to rid you of unsecured debts. These may involve credit card debt or medical bills. To qualify for chapter 7 bankruptcy, you must currently have no income, or little disposable income. If you make too much money, you automatically must file for Chapter 13 instead.
Chapter 7 bankruptcy involves selling any property that you own so creditors can be paid back. If you have no assets, they won’t get anything. This type of Chapter 7 bankruptcy is best for low income or no-income people who have few or no assets.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is best for debtors who have a regular income. They can pay back at least some of their debts on a regular payment schedule. This is the path you’ll take if you don’t qualify for chapter 7. Even if you qualify for chapter 7, many debtors may decide to go the route of chapter 13. This is because there are additional benefits in 13 that 7 doesn’t have.

The benefits of chapter 13 bankruptcy include the ability to catch up on missed mortgage payments without losing your home. You may also be able to remove any unsecured junior liens from your house.  With chapter 13 bankruptcy, you’ll be able to keep your house or property. This will also include non-exempt assets. To qualify for chapter 13, you must repay your debt through a special repayment plan.

The amount you pay back will depend on your current income, expenses, and your type of debt. Therefore chapter 13 is commonly called a reorganization bankruptcy. It’s meant strictly for debtors who can afford to make monthly payments and get caught up on car payments, child support arrears, or alimony debts.

Know Your Rights

It’s important to be aware of your rights if you choose to file for chapter 7 or chapter 13 bankruptcy. Choose the route that’s most pertinent to you. Now you’ll be on your way to financial freedom.
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.