What is bankruptcy?

Bankruptcy is a legal process that eliminates your debt.  What does that mean? It means it is a second chance for good people (like you) who have fallen on hard times to gain financial freedom. Through a reputable law firm, like HS&A, P.C., bankruptcy allows you to either reorganize your debt or entirely eliminate it through the bankruptcy laws, while allowing you to keep all of your assets. This includes your house, car, bank accounts and retirement accounts, along with many, many other things.

Is filing bankruptcy a bad thing?

A lot of people think that filing bankruptcy is a bad thing, but this isn’t true for several reasons.

First, the bad press about bankruptcy comes from the credit card companies. It is in their best interest to keep people from filing. Telling you several false things like etc… They want to keep you and millions of others paying your minimum payments FOREVER by telling you false things, such as:

  • You will never get credit again;
  • Your interest rates will skyrocket; and
  • You will never be able to buy a house.

This is how their CEO’s make millions of dollars a year – off of hard-working Americans paying their minimum balances forever!

The false things they push is FAKE! Your can and will get credit after filing for bankruptcy. Here at HS&A, P.C. we help all of our clients rebuild their credit after filing – ask us how! Your interest rates are probably not the best now if you are having financial strains, but with our credit rebuild program we give FREE to all of our clients we can and will fix your credit score. With eliminated debt and a re-built Credit Score you will be on your way to HOME OWNERSHIP in a short period of time!

Also, in the vast majority of bankruptcy filings, the person filing bankruptcy has already paid back the entire amount they borrowed plus a significant amount of interest by the time they file bankruptcy.  So, even when you file bankruptcy, your creditors make a profit. Sounds crazy but it’s true. At some point you need to ask yourself, “Haven’t I already paid my debt?”  And, “would I rather continue to pay on these debts for decades to come or use the money to save for retirement and give my family and myself the things we need and want?”

You are not a bad person, you have just been getting bad information from some very profitable, self-serving institutions.

Shouldn’t I try to pay my debt off first?

What is the definition of “crazy”? Doing the same thing over and over and expecting a different result. So, you pay your credit card bill each and every month, (just like the Credit Card Companies want you to do) but does anything change? Is something different? Your balance is basically the same each month, thanks to the interest rate. Nothing has changed and that is exactly when the Credit Companies want.

So, if you want to get out of debt, then we need to try something different, like filing for bankruptcy. Oh, well maybe I should do a debt consolidation or settlement company like the commercials say. The little secret about these companies are that they are doing the same thing you can do. These companies have you start paying them a monthly payment (which of course they take a fee from) which they start and account for you. Then when you have paid enough money in, they contact your creditors to see if they are willing to “settle” the account for a lesser amount that you owe. What they do not tell you is that during this period of time the Creditor can still attempt to collect from you and ever SUE you! Also, there is no guarantee the Creditor will settle the debt! So it all might be for nothing.

Then if they do settle the debt and the reduce the amount you owe, the last little thing is that the amount you don’t pay back, is INCOME to you that you will receive a 1099 for at the end of the year, that you will have to pay taxes on!

Filing for Bankruptcy takes care of all of these issues for you. Once you meet with a member of the HS&A, P.C. staff and we qualify you for Bankruptcy, we guarantee that all of your debt will discharged in bankruptcy. You will not have to pay any of it back and you will NOT have to pay taxes on any of it! Contact HS&A, P.C. to see if you qualify!

Types of Bankruptcy

Chapter 11 Bankruptcy

Chapter 11 is debt reorganization primarily used by corporations and businesses.  Unless you are seeking to file bankruptcy for a business, Chapter 11 won’t apply to you or your situation.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is what many people think of as “regular” bankruptcy or “plain old” bankruptcy.  It is a process by which people can eliminate their debts.  If a person qualifies to file chapter 7, they become debt free in just a matter of a few months.  You should contact a reputable law firm, such as HS&A, P.C., to see if you qualify for Chapter 7.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy on the other hand is a reorganization of debt. In most cases the person is not required to repay the entire amount owed, only a portion. The amount that is required to be repaid is based upon the person’s ability to re-pay. Everyone pays a different amount back. Whatever amount is not repaid during the Chapter 13 Bankruptcy is then “discharged” or eliminated and the person is debt free. Most people who file Chapter 13 Bankruptcy either have too much income to file a Chapter 7 Bankruptcy or they are behind on their house or car payments and they are attempting to keep those assets. You should contact a reputable law firm, such as HS&A, P.C., to see if you Chapter 13 Bankruptcy is right for you.

Consult our Michigan Bankruptcy Attorneys!

If you’re considering filing for bankruptcy in Michigan, our experienced bankruptcy attorneys serving in Royal Oak, Wyandotte, and more areas in Michigan can help! Schedule a consultation with us to discuss your financial situation and get legal help in seeking debt relief!