Understanding Bankruptcy for New Clients
You must live in the state in order to file your Bankruptcy in Michigan. In a bankruptcy filing there are “Debtors” and “Creditors.” The people and companies you owe money to are called “Creditors.” People who owe money to Creditors are called “Debtors.” Therefore, if you are here to learn about filing your bankruptcy to extinguish those debts, you are a “Debtor.”
Debtors who own large assets such as a house or a vehicle should gather ownership and payment documents such as certificates of title, and monthly statements, before contacting us or starting the evaluation form.
According to the latest Michigan bankruptcy statistics,Chapter 7 Bankruptcy filings are 3 times more popular than Chapter 13 Bankruptcy filings. This is probably because a Chapter 7 Bankruptcy filing gives debtors the proverbial “fresh start,” in other words, all non-priority, non-secure debts are forgiven.
A Chapter 13 bankruptcy is a bankruptcy court supervised repayment plan. Debtors who are behind on their monthly payments for large assets, need to consider the value of these assets, and whether it is more beneficial to give up the asset and owe $0 in a chapter 7 bankruptcy. For help in determining what is best for your financial situation, begin with a free consultation / call back form.