Each of the different states in the country have different rules when it comes to bankruptcy. When declaring bankruptcy in Michigan, there are a few rules to abide by before starting the process. If you are having a debt problem that has consisted for years, then it may be in your best interest to file for bankruptcy. Bankruptcy helps you to get out of the dept you are in and to catch up with the current bills that you are behind on.
Chapter 13 Bankruptcy
If you are filing for Bankruptcy, then you should look into the rules that pertain to your state. If you are filing for bankruptcy in Michigan under Chapter 13, then this will allow you to keep you car or house that is under a loan status. The bankruptcy laws in the state of Michigan will have you pay the creditors back, but the loans will decrease in the amount owed. They set a price that is affordable to you and that will allow you to keep the house and car you currently own.
| If you are in need of legal assistance, consult with a Bankruptcy Attorney in your area to recieve a free case review in exploring your legal options. |
Will Bankruptcy Affect my Credit Rating?
A person will not be certain if the bankruptcy in Michigan will affect their credit. Their credit might be already hurt seeing as though they are in debt now and trying to get out of it. If they file for bankruptcy, then it will be on the credit report for 10 years. Then he or she can get their credit back to normal in that 10 years and catch up with the current bills. This makes the bankruptcy process a very good way to start over with credit.
Procedures of Bankruptcy
If you have decided to declare bankruptcy in Michigan, then you will have to go to a meeting called the "meeting of the creditors." This will help you to know how much the creditors want to work with you. The meeting is to see how your finical problems are and the creditors will work with you in order to get a price set up.
If you are going to dispute a debt, then the court will have a hearing to look over your dispute. Filing for bankruptcy will help you with most of the creditors that you are in debt with. If you are not going to pay off collateral debts such as a car loans or house mortgages, then they will have to take the car or house unless you pay what the company asks for. This is what bankruptcy is not able to help with. Bankruptcy also does not erase debt with child support, alimony, and divorce problems.
If you are facing financial issues and contemplating bankruptcy, consult with a bankruptcy attorney before you make any decisions. They are best equipped to guide you to the best solution.
