If you are struggling to pay your monthly bills and simply can no longer make ends meet financially, then you may want to consider filing for bankruptcy.
This is the bankruptcy that most people think of when they hear the term bankruptcy. Chapter 7 is a complete liquidation of all of your debts. The filing will wipe out all of your unsecured debts and affords you the opportunity to start fresh. All of your credit cards, hospital bills and any other unsecured debts are eliminated through the filing.
The process is 90 days from start to finish and generally only one court appearance is required.
Am I qualified for chap 7?
There are a number of factors that your bankruptcy attorney must review to determine if you are qualified for chapter 7 BK and if you will be able to keep all your stuff. A full review of your income, expenses and personal assets must be conducted prior to proceeding with a chapter 7 BK. In most cases debtors retain all of their possessions and wipe out all their debts.
More of a debt repayment plan. Michigan is a court authorized debt consolidation plan designed to provide reasonable repayment terms and court protection for your assets such as a home or vehicle.Chapter 13 bankruptcy is generally used by debtors who want to keep secured assets, such as a home or car, when they have more equity in the secured assets than they can protect with their Michigan bankruptcy exemptions. Chapter 13 bankruptcy is a reorganization whereas Chapter 7 bankruptcy is a liquidation.