| Michigan Bankruptcy Pros & Cons |
Introduction
The benefits of your Michigan Bankruptcy will begin with the successful preparation and
filing of your Bankruptcy Petition in Bankruptcy Court. A person filing for Bankruptcy will be
relieved of harassment from creditor phone calls when they are notified of your bankruptcy
filing.
The benefits of your Michigan Bankruptcy will begin with the successful preparation and
filing of your Bankruptcy Petition in Bankruptcy Court. A person filing for Bankruptcy will be
relieved of harassment from creditor phone calls when they are notified of your bankruptcy
filing.
| Pros of Bankruptcy |
Owe $0 to your Creditors
A successful Chapter 7 Bankruptcy will ERASE most consumers' non-governmental debts
and provide the "fresh start" that you've been looking for. Common debts that get wiped out
include credit cards, medical bills, and miscellaneous utility bills that may have gotten out of
control. These are called unsecured debts, or debts that generally cannot be satisfied by
repossessing an item that you purchased to incur the underlying debt. If your debts are
primarily unsecured debts, you should begin our Free Evaluation Form to determine if you
are eligible to file for bankruptcy in Michigan. If after we review your information, you are not
eligible for a chapter 7 we will tell you why you are not eligible, and also determine whether
you should file under Chapter 13. Chapter 13 Bankruptcy protection is an court supervised
payment plan under which you will make monthly payments. In a Chapter 13 bankruptcy,
administrative costs and legal fees will be applied to each payment you make during the 3 -
5 year payment plan.
Start an Affordable Repayment Plan
Under a Chapter 13 Plan, you may have 3-5 years to pay off the sum of debt that your
Michigan Bankruptcy Attorney has negotiated with the Bankruptcy Trustee. During the
Chapter 13 payment plan, you will make one, consolidated monthly payment to the Trustee
accounting for ALL of your debts that you will be paying back. The bankruptcy court trustee
will then disburse this money amongst your creditors.
Creditors will stop Calling
From the moment we file your bankruptcy petition, an "automatic-stay" prevent creditors from
contacting you without obtaining written permission of the Bankruptcy Court. Consequently,
your Credit Cards, Mortgage, and Vehicle Loan holding institutions (amongst others) will
stop calling to collect money unless you specify that you would like to continue making
payments to a particular creditor. (For instance if you wish to keep your vehicle.)
Repossession Plans will be Frustrated
If you believe that one of your creditors is currently planning to repossess an asset such as a
vehicle, a Michigan Bankruptcy Petition filing will either stop or delay these creditor actions. If
you think your vehicle is about to be repossessed and you wish to keep it, you should see a
Michigan Bankruptcy attorney before the loan company takes action.
Prevent Repossession of your Trade Tools
Your Michigan bankruptcy attorney can also prevent the repossession of other important
personal property that you rely on daily (computers, cellular phones, trade tools, and other
necessities). If you are self employed and have a trade or profession, you should see a
Michigan Bankruptcy attorney to prevent repossession of trade tools.
Foreclosure Plans will be Frustrated
If you are a homeowner, and your mortgage is in delinquent status, you will be able to "stay"
foreclosure proceedings while the bankruptcy court processes your petition. If you plan to
keep your home, you should continue making mortgage payments and try to make up the
arrearage. On the other hand, if your plan to reduce your monthly expenses includes giving
up your home, bankruptcy will allow extra time for you to find a housing solution. In either
scenario, a Michigan Bankruptcy attorney should help you consider which alternative is
appropriate for your particular situation and to consider options that you might not have
otherwise thought of.
While we have mentioned some of the benefits of filing bankruptcy in Michigan, the benefits
that YOU qualify for depend on your income (for the last 6 months), debts, exemptions, and
geographic location. It is in your best interest to gather ALL necessary documents before
you begin to fill in our on-line Evaluation Form. Your Michigan bankruptcy attorney will be
able to help you much more efficiently if you are truthful and fill in the information that applies
to you completely. Many sections of the Evaluation form will not apply to you. Simply check
the box indicating "No" when you come across these sections.
A successful Chapter 7 Bankruptcy will ERASE most consumers' non-governmental debts
and provide the "fresh start" that you've been looking for. Common debts that get wiped out
include credit cards, medical bills, and miscellaneous utility bills that may have gotten out of
control. These are called unsecured debts, or debts that generally cannot be satisfied by
repossessing an item that you purchased to incur the underlying debt. If your debts are
primarily unsecured debts, you should begin our Free Evaluation Form to determine if you
are eligible to file for bankruptcy in Michigan. If after we review your information, you are not
eligible for a chapter 7 we will tell you why you are not eligible, and also determine whether
you should file under Chapter 13. Chapter 13 Bankruptcy protection is an court supervised
payment plan under which you will make monthly payments. In a Chapter 13 bankruptcy,
administrative costs and legal fees will be applied to each payment you make during the 3 -
5 year payment plan.
Start an Affordable Repayment Plan
Under a Chapter 13 Plan, you may have 3-5 years to pay off the sum of debt that your
Michigan Bankruptcy Attorney has negotiated with the Bankruptcy Trustee. During the
Chapter 13 payment plan, you will make one, consolidated monthly payment to the Trustee
accounting for ALL of your debts that you will be paying back. The bankruptcy court trustee
will then disburse this money amongst your creditors.
Creditors will stop Calling
From the moment we file your bankruptcy petition, an "automatic-stay" prevent creditors from
contacting you without obtaining written permission of the Bankruptcy Court. Consequently,
your Credit Cards, Mortgage, and Vehicle Loan holding institutions (amongst others) will
stop calling to collect money unless you specify that you would like to continue making
payments to a particular creditor. (For instance if you wish to keep your vehicle.)
Repossession Plans will be Frustrated
If you believe that one of your creditors is currently planning to repossess an asset such as a
vehicle, a Michigan Bankruptcy Petition filing will either stop or delay these creditor actions. If
you think your vehicle is about to be repossessed and you wish to keep it, you should see a
Michigan Bankruptcy attorney before the loan company takes action.
Prevent Repossession of your Trade Tools
Your Michigan bankruptcy attorney can also prevent the repossession of other important
personal property that you rely on daily (computers, cellular phones, trade tools, and other
necessities). If you are self employed and have a trade or profession, you should see a
Michigan Bankruptcy attorney to prevent repossession of trade tools.
Foreclosure Plans will be Frustrated
If you are a homeowner, and your mortgage is in delinquent status, you will be able to "stay"
foreclosure proceedings while the bankruptcy court processes your petition. If you plan to
keep your home, you should continue making mortgage payments and try to make up the
arrearage. On the other hand, if your plan to reduce your monthly expenses includes giving
up your home, bankruptcy will allow extra time for you to find a housing solution. In either
scenario, a Michigan Bankruptcy attorney should help you consider which alternative is
appropriate for your particular situation and to consider options that you might not have
otherwise thought of.
While we have mentioned some of the benefits of filing bankruptcy in Michigan, the benefits
that YOU qualify for depend on your income (for the last 6 months), debts, exemptions, and
geographic location. It is in your best interest to gather ALL necessary documents before
you begin to fill in our on-line Evaluation Form. Your Michigan bankruptcy attorney will be
able to help you much more efficiently if you are truthful and fill in the information that applies
to you completely. Many sections of the Evaluation form will not apply to you. Simply check
the box indicating "No" when you come across these sections.
| Cons of Bankruptcy |
A bankruptcy will remain on your credit report for seven years
Your credit report is a summary of your financial decisions that banks use to decide if they
should lend you money. Lending institutions use this report to determine your credit
worthiness. If you have a history of late payments, or delinquent banking accounts, you
probably do not have a very good credit report.
You will have to rebuild your credit from scratch
The good news is that if you are contemplating bankruptcy, your credit score is probably not
high. Moreover, if your credit score is already low, you probably are unable to obtain
financing at competitive rates anyway.
Bankruptcy Laws dictate 7 or 13 Eligibility
Bankruptcy Laws now require you to "fit" into Chapter 7 or Chapter 13 of the U.S. Bankruptcy
Code based upon your unique financial situation. It is your Michigan Bankruptcy attorney's
job to inform you of your options as well as take into consideration what you want to do. A
Michigan Bankruptcy attorney should review your unique situation to determine your status
and what can be done to achieve your desired result.
Mandatory Counseling
Bankruptcy laws now require a person filing for bankruptcy to receive "approved debt
counseling" before and after they file bankruptcy. You can find an approved bankruptcy debt
counselor on your own, or you can use the recommended debt counselor at our "resources"
page.
Although debt counseling is mandatory, you should remain positive and open minded as
this step is the first to building better habits with your finances. With a foundation of better
spending habits and a clean slate of $0 debt (or affordable payments), the world will once
again be your oyster.
Your credit report is a summary of your financial decisions that banks use to decide if they
should lend you money. Lending institutions use this report to determine your credit
worthiness. If you have a history of late payments, or delinquent banking accounts, you
probably do not have a very good credit report.
You will have to rebuild your credit from scratch
The good news is that if you are contemplating bankruptcy, your credit score is probably not
high. Moreover, if your credit score is already low, you probably are unable to obtain
financing at competitive rates anyway.
Bankruptcy Laws dictate 7 or 13 Eligibility
Bankruptcy Laws now require you to "fit" into Chapter 7 or Chapter 13 of the U.S. Bankruptcy
Code based upon your unique financial situation. It is your Michigan Bankruptcy attorney's
job to inform you of your options as well as take into consideration what you want to do. A
Michigan Bankruptcy attorney should review your unique situation to determine your status
and what can be done to achieve your desired result.
Mandatory Counseling
Bankruptcy laws now require a person filing for bankruptcy to receive "approved debt
counseling" before and after they file bankruptcy. You can find an approved bankruptcy debt
counselor on your own, or you can use the recommended debt counselor at our "resources"
page.
Although debt counseling is mandatory, you should remain positive and open minded as
this step is the first to building better habits with your finances. With a foundation of better
spending habits and a clean slate of $0 debt (or affordable payments), the world will once
again be your oyster.
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