Chapter 7 bankruptcy can help numerous Michigan residents get out of debt and find financial security. Unfortunately, there are a lot of people out there that claim it is the worst thing anyone can do from a credit standpoint, which stops others from even looking into it. True, this type of debt relief is not for everyone, but if you find yourself in an economic hole that is only getting deeper, it may be time to consider how bankruptcy law protections may benefit your specific situation.
Chapter 7 bankruptcy law is for people who lack the funds to pay their creditors. They simply do not make enough, their debt to income ratio is just too great or their disposable income is simply insufficient. In all reality, most people considering applying for bankruptcy protection may actually qualify for this type of relief.
If you are thinking about filing for Chapter 7 relief, it means that you want your debts discharged and you want creditors to stop harassing you. Upon filing a Chapter 7 petition, creditors are no longer able to attempt to collect on debts owed that may qualify for bankruptcy relief. There are some debts that do not, such as alimony, child support and most student loan debt. If your petition receives court approval, the discharge of qualifying debts will be almost immediate.
There are some disadvantages when it comes to utilizing bankruptcy law to improve your financial situation. Legal counsel can go over those with you so that you fully understand what it is you are signing up for if you choose to proceed with a Chapter 7 filing. Michigan residents who do choose to file bankruptcy petitions have simply decided that the good of doing so outweighs the bad. To learn more about Chapter 7 relief and if it might be for you, please take a moment and visit our firm’s website.