Commonly Asked Bankruptcy Questions
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, occasionally called a straight bankruptcy, is a liquidation proceeding. The borrower turns over all non-exempt property to the bankruptcy trustee who then changes it to dollars for payment to the lenders. The consumer will get a discharge of all dischargeable financial obligations generally inside of 4 months. In the majority of instances the borrower has no property that he / she would lose so Chapter 7 will give that person a relatively fast “fresh start”.
One of the key functions of Bankruptcy Law is to give a person, who is hopelessly burdened with debt, a fresh start by wiping out his / her debt.
Individuals who file for chapter 7 bankruptcy will need to agree to go to credit counseling. After filing chapter 7 bankruptcy, it can be tough to get credit for several years, and it is not possible to file for personal bankruptcy again for a set amount of time.
It has become more challenging to file for chapter 7 bankruptcy in the US, thanks to laws which substantially stiffened the bankruptcy policies in the early 2000s. It is advisable to consult a legal professional and an accountant prior to investing in a personal bankruptcy filing, because although the professional charges for the assessment may be high, there might be an alternative which has not been considered. A professional consultation can also smooth the way to move ahead with bankruptcy filings, if a person decides to carry on with bankruptcy proceedings.
What Is Chapter Thirteen Bankruptcy?
Chapter 13 Bankruptcy is commonly known as a reorganization bankruptcy. Chapter 13 bankruptcy is filed by men and women who would like to pay off their financial obligations over a period of 3 to 5 years. This kind of bankruptcy is of interest to individuals who have non-exempt assets that they want to retain. It is usually only an option for people who have predictable income and whose income is acceptable to pay their reasonable expenses with some sum left over to pay down their debts.
Hiring an experienced Stoneham debt attorneys is an important decision that should not be taken lightly. Make sure to setup a consultation with the Michigan Chapter 13 lawyers so that you can better understand your available options.
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