Bankruptcy Attorney in Royal Oak, MI
When dealing with so many financial issues, you might reach a point of desperation and be willing to do anything to get rid of your debt. Your situation has probably gotten so bad that filing bankruptcy has become worth seriously considering. If you made bad financial choices that led to your credit card debt piling up, filing for bankruptcy might make sense. Still, it would be a good decision to ask yourself: “When should I file for bankruptcy?”
Sudden and dramatic changes in your life usually cause most financial troubles you may experience. It’s very easy to accumulate credit card debt with even just one of the following: loss of livelihood, accidents, death of a loved one, and serious medical conditions. A bankruptcy filing may help you get back on your feet financially without creditors and debt collectors pestering you.
Asking yourself, “when should I file for Bankruptcy” is one of the important keys to experiencing debt relief. The importance of being aware of what you can expect should never be taken for granted. Our team at Hammerschmidt Stickradt & Associates will see that none of your resources are wasted during your quest for debt relief. If you are looking for a skilled Bankruptcy lawyer to walk you through the whole Bankruptcy proceedings, call our Bankruptcy law office today!
Why do I need a Bankruptcy Attorney in Michigan?
Besides knowing the answer to “when should I file for bankruptcy,” a reliable Bankruptcy attorney finds a lot of joy and fulfillment in helping clients navigate through a really difficult period. At Hammerschmidt Stickradt & Associates, our Michigan bankruptcy case attorneys will help you regain control over your money and make you generally feel less worried about your debt.
We also believe that a trustworthy Bankruptcy relief attorney upholds good moral values while also:
- Displaying strong integrity and work ethic in everything they do
- Treating all people with consideration and respect while giving excellent legal services
- Taking an active role in making the community a better overall place, and
- Communicating and creating mutual understanding with all their dealings
Unsure of what your next move will be? Avail of Hammerschmidt Stickradt & Associates’ free consultation to get a clearer answer to the question of “when should I file for Bankruptcy.”
What is Bankruptcy?
Bankruptcy is a federal legal process by the United States government to help an individual or group clear their debt or create a plan to gradually repay what they owe. Contrary to what some people think, bankruptcy can be a good thing as it acts as a safety net for an individual, family, or business that owes a large sum of money. The federal courts are the ones handling all Bankruptcy cases.
To be eligible for a bankruptcy filing, you must appear before the bankruptcy court and follow any orders they give 180 days before filing. You should also attend a credit counseling session from an approved credit counseling agency within 180 days before submitting your petition unless you qualify for an exception. The counseling you’ll be given should tell you the answer to “when should I file for Bankruptcy.”
Still wondering, “when should I file for bankruptcy”? The following frequently asked questions should tell you more about how you can file for bankruptcy, the types of bankruptcy chapters to choose from, what you can file for, and if there are alternatives to Bankruptcy.
What are the different Bankruptcy chapters?
There are a total of five bankruptcy chapters according to the United States Bankruptcy Code:
Chapter 7 Bankruptcy involves the liquidation of a debtor’s non-exempt properties for debt relief.
- Chapter 9 Bankruptcy involves the reorganization of debts by municipalities that include cities, towns, villages, school districts, taxing districts, and municipal utilities.
- Chapter 11 Bankruptcy involves a corporation or partnership reorganizing debts to help their business stay afloat while paying creditors over time.
- Chapter 12 Bankruptcy involves the adjustment of debts by individuals considered by the Bankruptcy Code as family fishermen and family farmers.
- Chapter 13 Bankruptcy involves the adjustment of debts for individuals with regular income, allowing them to keep their assets and giving them three to five years to pay their debt fully.
To give a definitive answer to “when should I file for bankruptcy,” you need to determine if you are actually eligible to be a bankruptcy petitioner and what you need to do before filing.
What is Chapter 7 Bankruptcy?
Also called liquidation bankruptcy, Chapter 7 Bankruptcy is where a bankruptcy trustee gathers and sells some or most of your personal assets that are not protected by Colorado Bankruptcy exemptions. The money raised during the liquidation process will then be used to pay your debt. After filing for it successfully, this Bankruptcy chapter will be in effect for 3 to 6 months.
Knowing which of your property can be exempted from liquidation is crucial to prevent having all of your valuables taken away from you. Under normal circumstances, you can keep your car, social security, and other personal belongings like your clothes. Speaking with a reliable Colorado Bankruptcy attorney about these Bankruptcy exemptions should give you a better idea of what to expect during the Michigan Chapter 7 Bankruptcy proceedings.
What is Chapter 13 Bankruptcy?
Also known as consumer reorganization, Chapter 13 Bankruptcy is where the debtor does not need to surrender personal property or assets. You will instead be given 3 to 5 years to repay your creditors through a debt settlement plan. The length of time you will be given to pay your debt will depend on how much is your monthly income during the date of filing a bankruptcy petition.
A regular source of income is necessary to qualify for Chapter 13 Bankruptcy filing. It is also considered the most helpful Bankruptcy chapter as it allows you more opportunity to pay your debt on time.
To help you answer the question “When should I file Bankruptcy” and determine which Bankruptcy chapter best suits your needs, reach out to a Royal Oak Bankruptcy attorney immediately!
Are there alternatives to Bankruptcy?
Your question of “when should I file for Bankruptcy” should already be answered by this time. But before filling up forms, it would be good to consider other alternatives to Bankruptcy as this may cost you much less money, time, and effort.
Below are some actions to consider before you go through the Bankruptcy proceedings:
- Negotiate with your creditors since they might allow you to pay less than the amount owed
- Prevent your creditors from harassing you with the help of a Fair Debt Collection Practices Act (FDCPA) attorney
- Ask for a credit counseling agency’s help so they can try to cut a deal with your creditors on your behalf.
- Participate in a debt counseling program to have someone assist you in making a repayment plan without Bankruptcy appearing on your credit record
Additionally, not doing anything is an option if you earn very little and don’t have any assets. Nonetheless, it is best to speak with a Michigan bankruptcy attorney before deciding. Deal with secured debt and unsecured debt with our help!
Call our Michigan Bankruptcy Attorney Now!
Whether or not you already know the answer to “when should I file for bankruptcy,” your choice will determine your financial situation for the next few months or years. That’s why having great legal representation is essential when deciding to go through bankruptcy.
Aside from giving you the answer to “when should I file for bankruptcy,” Hammerschmidt Stickradt & Associates also offers excellent debtor education and reliable legal advice on the following practice areas:
- Automatic Stay in Bankruptcy
- Abusive Creditors
- Credit Card Debt
- Student Loan Debt
- Stop Foreclosure
- Wage Garnishment
Give us a call for a FREE consultation, and we’ll do our best to help fix your problems!