A simple explanation of bankruptcy is that it’s a law set up to protect individuals and businesses who cannot pay their debts. When a person or organization files for bankruptcy, they may choose to liquidate their assets or create a repayment plan to offset the debts. The debtor in bankruptcy case is the person who owes a debt to a creditor. A bankruptcy case can be commenced by a bankruptcy filing voluntarily by debtors or involuntarily by creditors. While this process can grant you a new start, it also stains your credit record, making it hard to get credited in the future.
To check bankruptcy filings, use the public records online and search for the Public Access to Court Electronic Records (PACER). To declare bankruptcy without a lawyer is defined as pro se. Due to the influx of legal jargon involved in litigation, it is best to hire a bankruptcy lawyer to represent you in court. Attorneys are experienced and will advise on eligibility to file for bankruptcy, forms that need filing, debts that can be reduced or minimized, and possible remnants of the case.
If you require the services of a bankruptcy attorney Michigan has several bankruptcy attorneys for you to choose from. Choosing an appropriate Michigan bankruptcy lawyer will depend on which chapter of personal bankruptcy your filing for. Filing for chapter 7 Michigan bankruptcy, for example, is quite different from filing for chapter 13 bankruptcy Michigan provides. Most bankruptcy in Michigan is determined based on a means test. Qualified for either chapter of personal bankruptcy will require such a test. As you are filing bankruptcy in Michigan, a means test will determine whether or not you qualify for repayment or restructuring debt, also known as chapter 13 bankruptcy. If you are considered too high risk of a debtor for chapter 13 bankruptcy to be practical, chapter 7 Michigan bankruptcy will be your only option.
Chapter 7 Michigan bankruptcy is considered liquidation bankruptcy. Liquidation bankruptcy means that you turn all of your assets into liquid capital. Liquid capital is cash on hand that you can use to pay off your existing debt. Paying off your existing debt through liquidation is only allowed for certain forms of debt. If you owe back child support, back alimony, restitution or other fines for fraud cases or student loans, you will continue to owe money on these debts even if you qualify for bankruptcy. Learn more about the differences between chapter 7 and chapter 13 bankruptcy by reaching out to a Michigan bankruptcy expert that offers personalized advice.
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