If you are wondering whether bankruptcy is right for you, it is important you not only understand what bankruptcy does do, but what it doesn't do as well. Bankruptcy is not an end-all solution to financial debt.
1.Individuals who have an obligation to pay child support, alimony, student loans, criminal fines, certain taxes and other court-ordered restitutions or fees will not be able to get these types of debt discharged through bankruptcy.
2. Bankruptcy does not protect co-signers from financial damage. If you have a loved one who has co-signed on one of your debts, the creditor will be able to pursue payment or legal action against that co-signer for the purpose of getting the debt paid.
3. Any debt which is incurred after an individual has filed for bankruptcy or which is left off the bankruptcy petition will not be eligible for discharge.
4. Bankruptcy does not eliminate the rights of those creditors with whom you have a secured debt. A home mortgage, a car loan or a lien on any other type of property which has been used as collateral to secure a loan are all examples of secured debt which is not eligible for discharge in the same way that unsecured debt is eligible for discharge. The way to get this type of debt discharged is to give up possession of the relevant property. If you wish to retain possession of the collateral used to secure your loan, then you will be required to continue making regular payments according to the terms of your loan agreement.
Bankruptcy is a complex procedure that can be extremely beneficial when done right. If you are looking at filing for bankruptcy or you are considering any of the alternatives to bankruptcy, we recommend you consult with a Detroit bankruptcy lawyer before you make your final decision. Our lawyers have more than 33 years of combined legal experience and we have successfully handled thousands of bankruptcy cases. We are well-versed on bankruptcy laws and are dedicated to providing clients with the personalized attention their case requires. No two cases are the same, so it is vital that you have a lawyer who can understand your situation and who will do everything possible to help you alleviate your financial woes.
Contact Marshall D. Schultz today to find out what we can do for you.