Wednesday, 18 October 2017

When To Hire A Michigan Bankruptcy Attorney

By Michelle Schmidt


It does not take long to accumulate unmanageable levels of debt, especially if you have financial indiscipline. You just need to charge your credit card several times and fail to pay your credit card debt. You might also have a personal loan, car loan and mortgage, which can increase your debt burden and make life difficult for you. If you have accumulated too much debt that you are not able to service, it is important you look for a competent Michigan bankruptcy attorney to help you seek legal protections and help you get rid of your bad debts.

Debtors have access to three bankruptcy chapters. However, the most popular is chapter 7 because anyone can qualify for this chapter, which calls for liquidation of assets. The second most popular option is chapter 13 because individual debtors with reliable income sources can apply to become bankrupt under this option. The other option is chapter 11, which is similar to chapter 13 except for the fact that it is meant for businesses and corporates.

All the different types of bankruptcies have pros and cons that consumers should be familiar with before they apply to become bankrupt. The ideal lawyer is able to advice clients properly on the reasons for as well as the reasons against becoming bankrupt. This information will enable the consumer to make a well-informed decision.

In a chapter 13, the debtor is required to make a repayment plan to offset their debts. If accepted by the court, the debtor only needs to make monthly payments throughout the bankruptcy period to offset their debts. All unpaid debts after the bankruptcy period lapses are written off and no assets are sold. This is the main benefit of this chapter.

In a chapter 11, the management of the business or organization need to come up with a plan to repay the debt with convenient monthly payments. Once the repayment period lapses, all unpaid debts will be written off. This means that the business will be able to get a fresh start and start rebuilding their brand free of bad debts.

There are some debts that consumers should know cannot be written off simply because they have become bankrupt. For instance, the only way your child and spousal support obligations can be amended is through an amendment to your divorce settlement agreement. Student loans, on the other hand, can only be written of when the borrower passes away before settling their debts.

If there is one thing that you need to pay attention to when looking for a suitable lawyer to help you out with the case it must be experience. You want to be advised and represented by someone who has handled many similar cases in the past. Therefore, you need to identify the most experienced lawyers and give them priority consideration.

When you have financial problems, it is important you shop around for the most affordable products and services. Therefore, you should compare quotes provided by different lawyers to identify the most affordable lawyer. However, you should also check the success rate of the lawyer as well as the quality of service they normally offer before making a decision.




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