It’s a question you’ll probably ask yourself when faced with money troubles. When knowing of someone who went bankrupt, chances are you’ll think of that person as someone who mismanaged his/her finances and owes a ton of money as a result. While that may be true for some people, there are circumstances unique to each individual which caused their financial troubles.
Monetary problems can arise due to a number of reasons which include loss of livelihood, divorce, serious illness, and accidents. Bankruptcy filing can help alleviate the stress caused by these occurrences and get you back on track financially.
So before asking yourself questions like “Should I file for Bankruptcy or not?”, you must first know exactly what you’re getting yourself into. Working with a Michigan Bankruptcy lawyer from Hammerschmidt Stickradt & Associates should help you with that. Give their law firm a call today to receive a free consultation!
Seeking Financial Freedom?
How would you like to wake up not worrying about your creditors or loan balances? Our Michigan Bankruptcy Attorneys can help you attain new financial freedom! Worried about the cost? We offer payment plans for all budgets and a free credit rebuilding program!
Though it’s possible to file for Bankruptcy without the services of a bankruptcy attorney, it is highly recommended to have one due to potential long-term legal and financial implications. Having a Bankruptcy attorney to answer questions like “Should I file for Bankruptcy?” not only keeps you well-informed but also gives you an idea of what to expect with your life after achieving debt relief.
Each Bankruptcy attorney at our law office works tirelessly to give every client the best legal assistance possible. We understand exactly how difficult going through the Bankruptcy process can be, so we see to it that every attorney we work with:
Has a strong work ethic
Shows honesty in all dealings
Is respectful and considerate
Helps create a positive impact in their respective communities
Provides multiple options and has the client’s best interest in mind
In addition, a Bankruptcy attorney worth your trust does his/her best to:
Make sure you get to keep most or all of their properties
Help increase your credit score
Not allow you to spend more than you need to
If you’re one of many people struggling with large amounts of debt and wondering “Should I file for Bankruptcy?”, speak to our knowledgeable Bankruptcy attorney right away!
What is Bankruptcy?
Bankruptcy is a federal legal process by the United States government made to help an individual or group clear their debt or create a plan to gradually pay back 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 who owes a large sum of money. The federal courts are the ones handling all Bankruptcy cases.
Still asking yourself “Should I file for Bankruptcy”? The following sections will discuss who is able to file for Bankruptcy, the types of Bankruptcy that can be filed for, how you can file for Bankruptcy, and if there are alternatives to Bankruptcy.
Who can file for Bankruptcy?
Bankruptcy is the United States government’s way of assisting people who are unable to pay their debts by creating a plan to slowly repay the amount owed or by liquidating properties and using the money for debt relief.
Under the United States Bankruptcy Code, the following can file for Bankruptcy:
Municipalities, municipal utilities, towns, villages, school districts, and taxing districts
Fishermen and family farmers
Third parties from other countries
To find out if filing for Bankruptcy is appropriate for your current situation, get in touch with a Michigan Bankruptcy attorney and get an answer to the question of “Should I file for Bankruptcy?”.
What are the Types of Bankruptcy?
No matter what chapter of Bankruptcy you petition for, there are several aspects which are the same for all of them. Here are the five types of Bankruptcy under the United States Bankruptcy code and who can file them:
Chapter 9 Bankruptcy can be filed by municipalities, towns, villages, and school districts to reorganize their debts
Chapter 11 Bankruptcy can be filed by businesses to reorganize their debts usually after their assets are liquidated
Chapter 12 Bankruptcy can be filed by family farmers and fishermen to adjust their debts
Chapter 13 Bankruptcy can be filed by individuals to gradually clear their debts over a period of 3 to 5 years
Bankruptcy Chapters FAQs
Are you still asking yourself if “Should I file for Bankruptcy”? Below are quick overviews for each chapter:
If you want the quickest type of Bankruptcy, file for Chapter 7 since it only takes around 4 months to finish and you won’t need to pay any creditors during the process. However, you may lose some of your assets that aren’t covered by exemptions.
If you want the most helpful type of Bankruptcy, file or Chapter 13 since you most likely won’t be losing any properties and will instead be given a 3 to 5-year payment plan to slowly but surely clear your debt.
If you want the type of Bankruptcy where the least amount of money is paid to your creditors, file for Chapter 11 Bankruptcy. The bankruptcy process for Chapter 11, however, is the most expensive and complicated of all. Large and small businesses are often the ones who file for this.
Chapters 9 and 12 would be the best option if you belong to a specific group of people (fishermen and family farmers) or community, respectively.
How can I file for Bankruptcy?
Regardless of what Bankruptcy chapter you want to petition for, you need to appear before bankruptcy court and should follow their given directives 180 days before filing. You should also undergo counseling from an approved credit counseling agency within 180 days prior to filing unless you qualify for an exception. The counseling you’ll be receiving should give you the best answer to “Should I file for Bankruptcy?”.
Speak to an Oakland County Bankruptcy attorney the exact process and all the paperwork needed during the bankruptcy process.
Are there alternatives to Bankruptcy?
The question to “Should I file for Bankruptcy” should already be answered by now. But before putting in the paperwork, it would be wise to explore other alternatives to Bankruptcy first as this may end up saving lots of money, time, and effort.
Here are a few methods to consider before actually going through the Bankruptcy process:
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 in 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, doing absolutely nothing may be a good option if you’re someone who has a small income and very little assets.
Call our Michigan Bankruptcy Attorney Now!
Whether your answer is Yes or No to the question of “Should I file for Bankruptcy?” will most probably dictate your financial status for the next several months or years. This is why it’s necessary to have great legal representation once you decide to go through the Bankruptcy process.
The attorneys at Hammerschmidt Stickradt & Associates take pride in providing the most reliable legal services in Michigan. Our law office also assists in these practices: