Trying to find reliable bankruptcy information? Look no further. We’ve compiled a list of the most frequently asked questions our bankruptcy lawyers field from clients declaring bankruptcy. If one of your questions isn’t on our list, please do not hesitate to schedule an appointment with one of our Lansing attorneys for bankruptcy help.
What is bankruptcy?
Do you get constant calls from debt collectors? Have you been unable to pay your bills? If any of this sounds familiar, you may want to consider claiming bankruptcy. Bankruptcy is designed to help people like you get a fresh start by eliminating your legal obligation to pay most debts. As soon as you file for bankruptcy, creditors must stop contacting you until it is determined how your debts will be resolved.
What are the benefits to filing bankruptcy?
While bankruptcy won’t resolve all of your financial problems, it does help you recover financially after significant debt.
Benefits to filing bankruptcy include:
- Eliminating legal obligation to pay most debts
- Stopping foreclosure on house or mobile home
- Preventing car repossession
- Stopping wage garnishment
- Stopping calls from debt collectors
- Restoring utility service
To fully understand what can do for you, we recommend contacting a bankruptcy attorney to help you with your case.
What can’t bankruptcy do?
Bankruptcy isn’t able to resolve all financial problems. For example, if you defaulted on a loan, your co-signer will still be held legally responsible for paying part or all of the debt. Also, keep in mind that bankruptcy won’t be able to eliminate the rights of “secured” creditors. Bankruptcy attorneys will make sure you have all the facts you need to make an informed decision.
What are the different types of bankruptcy?
Most of the clients we work with file or Chapter 13 bankruptcy. The type of bankruptcy you decide to file will depend on your unique financial circumstances.
The four types of bankruptcy are:
- Chapter 7: Valuable property not “exempt” under the law is liquidated to pay creditors.
- Chapter 11: Filed by businesses or individuals with large debts.
- Chapter 12: Only fishermen and family farmers apply.
- Chapter 13: Debts are organized so they are paid off over several years using current income.
What must happen before filing bankruptcy?
You need to have received budget and credit counseling within 180 days before filing bankruptcy. Unfortunately, there are a lot of credit counseling agencies that try to take advantage of people in financial crisis.
Bankruptcy lawyers will be able to help you find an approved credit counseling agency and advise you of whether filing bankruptcy is the right choice for you. We recommend you meet with an attorney before receiving credit counseling so you can avoid being pressured into a debt management plan you may not need.
The East Lansing bankruptcy lawyers at Foster & Harmon are dedicated to making sure you receive the best outcome after filing bankruptcy. If you are interested in learning when to file bankruptcy, schedule your free initial phone consult at (517) 337-4600.