If you have money problems that you are struggling to overcome, it is okay to look at all of the debt relief options that are available to you. There are several ways you can approach the situation; bankruptcy is not called for in every case. However, in certain circumstances, it may be the best route to financial freedom. Which form of bankruptcy is best for Michigan residents who are drowning in debt?
There are two types of personal bankruptcy: Chapter 7 and Chapter 13. A Chapter 7 filing, if approved, will result in the complete discharge of qualifying debts — such as credit card debt and medical debt, among others. A Chapter 13 filing, on the other hand, if approved, will result in the creation of an affordable repayment schedule. At the end of the repayment period, which lasts three to five years, any remaining qualifying debts will be discharged.
When deciding which form of bankruptcy is right for you, you need to consider the following: your income situation, how much debt you have, and what you want to achieve when all is said and done. Depending on where your income falls, how much and what kind of debt you have and your goals for going through the process, one form of bankruptcy may make more sense for your situation than the other. Each has its advantages and disadvantages. Legal counsel can go over those with you to help you determine which will best suit your needs.
When it comes to debt relief, there is no one right way to go about it. There are different options out there because people have different needs. Which type of bankruptcy is right for you may not be what is best for someone else. Michigan residents who would like to learn more about the different kinds of personal bankruptcy and how legal counsel can help one through the process can visit our firm’s website for more detailed information.