Accumulating unmanageable levels of bad debt takes time. You only need to charge your credit card a few times, get car financing, buy a big house and fail to make your monthly payments. It is usually the lack of financial discipline that forces people into bad debt. However, loss of a job, temporary or permanent disability and change of circumstances can also be blamed for the problem. Fortunately, you can hire a Michigan bankruptcy attorney to help you out when you are unable to meet your debt obligations.
Debtors have access to three types of bankruptcies. These are chapters 7, 11 and 13. Chapter 7 is available to both individual and corporate debtors. It provides for liquidation of property to recover funds to pay off debts. The second is chapter 11, which is basically debt restructuring for businesses. The last option is chapter 13, which is similar to chapter 11, but it is meant for individual debtors.
Each of the different types of bankruptcies provided under the law have pros and cons. The ideal lawyer, should be able to explain all these benefits and shortcomings to you to help you make a well-informed decision on how to get rid of your debts. The ideal lawyer should be a certified expert in the field as this will go a long way in ensuring you get quality services.
In debt restructuring under chapter 13, the debtor is required to make a plan to pay off debts over the stipulated period of time. By making these small payments, the debtor will become debt free in a couple of years. This is because all unpaid debts after the period will be forgiven. The beauty of this chapter is that no assets are sold, and the payments are convenient for the debtor.
In a chapter 7, the management of the organization or business is required to come up with a sustainable repayment plan for all their debts. By making monthly payments throughout the bankruptcy period, the business can keep its doors open and retain all their assets. After the stipulated time frame, any debts that might not have been paid will be written off.
There are many types of debts that cannot be forgiven, so you need to check your bad debts to see if becoming bankrupt is a wise move. For example, if student loans, child support and spousal support back-payments and taxes form 70 percent of your outstanding debts, it may not make much sense to become bankrupt since you will still have a huge debt burden.
When looking for an attorney to hire, there is one important thing that you should pay attention to - experience. The years of experience of the attorney as well as the number of cases handled should be checked. Be sure to also check the number of similar cases the lawyer has handled in the recent years.
Since you are already in money problems, be sure to choose an affordable legal services provider. Do not hire the most expensive lawyer just because you need competent legal counsel. After all, there are many competent lawyers who charge reasonable rates. Therefore, you should do your research prior to making a decision.
Debtors have access to three types of bankruptcies. These are chapters 7, 11 and 13. Chapter 7 is available to both individual and corporate debtors. It provides for liquidation of property to recover funds to pay off debts. The second is chapter 11, which is basically debt restructuring for businesses. The last option is chapter 13, which is similar to chapter 11, but it is meant for individual debtors.
Each of the different types of bankruptcies provided under the law have pros and cons. The ideal lawyer, should be able to explain all these benefits and shortcomings to you to help you make a well-informed decision on how to get rid of your debts. The ideal lawyer should be a certified expert in the field as this will go a long way in ensuring you get quality services.
In debt restructuring under chapter 13, the debtor is required to make a plan to pay off debts over the stipulated period of time. By making these small payments, the debtor will become debt free in a couple of years. This is because all unpaid debts after the period will be forgiven. The beauty of this chapter is that no assets are sold, and the payments are convenient for the debtor.
In a chapter 7, the management of the organization or business is required to come up with a sustainable repayment plan for all their debts. By making monthly payments throughout the bankruptcy period, the business can keep its doors open and retain all their assets. After the stipulated time frame, any debts that might not have been paid will be written off.
There are many types of debts that cannot be forgiven, so you need to check your bad debts to see if becoming bankrupt is a wise move. For example, if student loans, child support and spousal support back-payments and taxes form 70 percent of your outstanding debts, it may not make much sense to become bankrupt since you will still have a huge debt burden.
When looking for an attorney to hire, there is one important thing that you should pay attention to - experience. The years of experience of the attorney as well as the number of cases handled should be checked. Be sure to also check the number of similar cases the lawyer has handled in the recent years.
Since you are already in money problems, be sure to choose an affordable legal services provider. Do not hire the most expensive lawyer just because you need competent legal counsel. After all, there are many competent lawyers who charge reasonable rates. Therefore, you should do your research prior to making a decision.
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Find a summary of the benefits of consulting a Michigan bankruptcy attorney and more info about an experienced lawyer at http://www.hashleylawplc.com right now.
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