Chapter 7 is usually the first option for those wanting to file for bankruptcy because it can be completed within a few months. It also makes sense for those whose assets are essential to their daily life due to the number of exemptions in Chapter 7 bankruptcy. It is also fairly cheap since there is no need to pay your creditors.
Before sending your paperwork for Chapter 7 bankruptcy filing, you (either representing yourself or your business) must appear before the bankruptcy court and comply with the orders given at least 180 days before your bankruptcy petition. Unless you are qualified for an exception, you are required to undergo counseling from an authorized credit counseling agent within 180 days before you file to help you determine what exemptions in Chapter 7 bankruptcy your assets will be under. You must also pass a totality of the circumstances test and means to determine if your present situation qualifies you to file for Chapter 7 bankruptcy.
What are the Other Types of Bankruptcy?
Under the Bankruptcy Code, filing for bankruptcy in the United States is categorized into five chapters. Your bankruptcy attorney will help you determine which of these most apply to you based on the situation and source of income.
Apart from Chapter 7 bankruptcy, here are other bankruptcies you may choose to file:
- Chapter 9 – Municipality
- Chapter 11 – Business reorganization
- Chapter 1 – Family farmer reorganization
- Chapter 13 – Consumer reorganization
So if you are planning to file for Chapter 7 bankruptcy but do not want to give up any expensive items you possess, get in touch with a skilled bankruptcy attorney right away!
Call our Chapter 7 Bankruptcy Exemptions Attorney in Michigan Now!
Filing for Chapter 7 Bankruptcy (or any bankruptcy) is a difficult decision. You need to know all the facts, consider many factors, and be aware of any possible exemptions before you file. Our team at Hammerschmidt Stickradt & Associates is highly qualified to give the best legal services in other practice areas like Chapter 13 bankruptcy, credit card debt, student loan debt, abusive creditors, wage garnishment, stop foreclosure, and automatic stay in bankruptcy.
Give us a call to avail yourself of our free consultation. We will do whatever is needed to help you!