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Making the choice to declare Chapter 7 bankruptcy

In a challenging economic landscape, many individuals and businesses find themselves facing mounting debt and other fiscal issues. Michigan residents are well aware of how quickly debt can accumulate. In some cases, the most responsible financial option available is to file for Chapter 7 bankruptcy, which can help to pay down debts by liquidating assets.

There are, of course, many options available to the individual or business owner in difficult financial straits. Debt counseling is one course of action that can help a person get a clearer picture of their debt structure and how best to move forward to pay it down. Additionally, debt counseling can be a helpful source of information about whether bankruptcy is the right move.

In some cases, debt restructuring and other possible solutions are unsuited to a given case, possibly due to insolvency on the part of the individual or business. If the total amount owed exceeds the fair market value of all assets, bankruptcy can be a good way to bring that debt down to a manageable level while protecting certain assets from liquidation. Regardless, it can be beneficial to understand the intricacies of all debt payment options before making a final decision.

Chapter 7 bankruptcy can help to save an individual or business from ongoing financial problems. By liquidating assets, debts can be discharged -- as opposed to struggling with a slow repayment plan -- getting consumers out from under the proverbial gun faster. Understanding the facts about filing for bankruptcy in Michigan can sometimes make the difference between a slow battle of attrition against rising debt and a return to financial stability.

Source: dailyfinance.com, How to Know When Bankruptcy Is Your Best Option, Katherine Muniz, Jan. 26, 2014

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