If you are like most people, when you borrow money, you intend to repay it. When something unforeseen occurs, such as a catastrophic illness or job loss, you may be unable to make your payments. There may be bankruptcy options available to assist you in erasing the debt.
While bankruptcy may appear to be the ideal solution, it ruins credit and makes it demanding to maintain bank accounts and credit cards. It can also result in the loss of valuable possessions, making it difficult to continue life’s necessities, such as buying or renting a home or car, obtaining insurance, or finding a job. In actuality, most financial counselors view bankruptcy as the last alternative – one that should be pursued only with the assistance of an experienced bankruptcy attorney – and only after budgeting, credit counseling, and other measures have failed.
If you intend to file for bankruptcy, you must complete a credit counseling course from a government-approved agency within 180 days before filing. Additionally, you must complete a debtor education program before your obligations can be dismissed.
Planning to start a new business after bankruptcy?
Working with a Hammerschmidt Stickradt & Associates bankruptcy attorney can aid in navigating the bankruptcy process and provide valuable advice for establishing a new business. Call our bankruptcy attorneys in Royal Oak or Wyandotte today. Additionally, you can request a complimentary examination online to gain assistance analyzing your options and making the best decisions.
Why do I need a Bankruptcy Attorney in Royal Oak, MI?
You may be unfamiliar with bankruptcy but have a significant case to develop. You may have completed the documentation and require the assistance of Hammerschmidt Stickradt & Associates to evaluate it. A Michigan bankruptcy attorney is competent to assist you with seven tasks.
- Being updated on bankruptcy law. A Michigan bankruptcy attorney is well-versed in state and federal law and is up-to-date on the latest amendments to existing regulations. They obtain information and training not required of clients.
- Handling matters on paperwork. Copious documents must be filled out, signed, and filed in a bankruptcy case. The absence of a single document may result in the dismissal of your case or refusal of your release. A lawyer knows which forms to complete and will file them on your behalf.
- Describing your bankruptcy options. There are various methods to settle debt and avoid court. An attorney explains all of your bankruptcy choices. You will have a comprehensive understanding of the six bankruptcy chapters of the Bankruptcy Code, including Chapters 7, 11, and 13.
- Straightening out assets and liabilities. Your lawyer is familiar with common phrases such as “assets” and “liabilities.” They should be familiar with popular legal and accounting terms. Learn how to effectively manage your assets and liabilities to strengthen your case with their help.
- Maintaining track of time. A reliable bankruptcy attorney is always aware of the time. Meeting deadlines is the most challenging aspect of filing. You must gather the evidence, complete the paperwork, and file the paperwork on time.
- Maintaining integrity. To prevent bankruptcy fraud, a skilled attorney is always honest and precise. Request that they review your documentation. An intentional or unintended mistake could cause a document to appear fraudulent.
- Appealing. Rely on legal counsel to appeal a denied case. You may be denied due to a simple inaccuracy in your application and deem the result unreasonable. Your attorney will identify any unfairness and advocate for a new ruling.
Filing for bankruptcy takes time and is less effective without the assistance of legal specialists. Hammerschmidt Stickradt & Associates works diligently to help clients understand the law and file on time. Streamline the procedure and improve your chances of regaining financial stability.
A Business Venture Following Bankruptcy? It is indeed feasible!
After declaring bankruptcy, especially in a challenging job market, you may feel that starting your own business is the best action. As a result of the COVID-19 epidemic, many individuals have altered their perspectives on how to provide for their families. Additionally, the number of individuals who are now comfortable with working from home has increased rapidly. However, you may question if any restrictions prevent you from launching a firm too quickly following a bankruptcy.
The good news is that the bankruptcy court respects your need to earn a living so you can begin a business the day after a bankruptcy filing or discharge. If loans are required, it may be necessary to acquire court approval before acquiring debt.
Acquiring Business Debt
In reality, a Chapter 13 bankruptcy court is unlikely to allow a request to incur extra debts of several thousand dollars or more to launch a new business.
The bankruptcy petition suggested that you require assistance with debt and credit management. The court does not want you to incur further debt while striving to pay off your current responsibilities. If you incur new debt without notifying the courts, they may terminate your bankruptcy proceeding entirely. A dismissal would permit all creditors engaged in the bankruptcy plan to continue collection operations, including wage garnishment, against you.
It is also unlikely that you would be approved for a new loan if your credit report had a recent bankruptcy. All your assets, including your home, are included in the bankruptcy procedures, so they cannot be utilized to get a new loan. You may be able to find a lender who specializes in borrowers with poor credit, but you will likely be subject to a significantly higher interest rate, placing you back in a difficult position.
Better rebuilding strategy
Before launching a new business, it may be wise to wait until after your bankruptcy has been discharged. You and your bankruptcy lawyer can complete a Chapter 7 bankruptcy in less than six months, after which you are no longer subject to court supervision. You are free to accept any more debt lenders are willing to provide you at that moment. Chapter 13 bankruptcy requires a three-to-five-year payment plan, which makes the process much more time-consuming.
Federal bankruptcy laws mandate formal debt and credit counseling as a condition of filing for bankruptcy. Credit counselors advise against incurring excessive debt for any reason, even starting a business. Although filing for bankruptcy is to give you a fresh start, you want to prevent finding yourself in the same situation in a few years.
Numerous enterprise types can be started without incurring loans or debt. These options permit you to begin immediately after filing for bankruptcy. Experts propose starting a home-based business with the tools and resources you already own, such as a computer with Internet access. Choose to borrow small sums from relatives or friends if you must borrow money.
Call our Bankruptcy Lawyers Now!
Our bankruptcy attorneys assist clients throughout Michigan, including Royal Oak and Wyandotte. The past 15 years have been devoted to creating and implementing a plan that will assist clients in resolving the burdens associated with their bankruptcy issues, removing the burdens of debt, and reducing the stress related to bankruptcy filing processes in Michigan. Contact our bankruptcy attorneys in Royal Oak today for a free consultation to discuss your options, especially when you have plans to start a new business after bankruptcy.