For those unable to manage their debt, bankruptcy is a means of restructuring it such that some of your assets can be sold off to pay down your debts and can make further payments more manageable. While filing for bankruptcy is a very significant step in your financial life, it can provide a host of benefits and opportunities. You should consult with a qualified Detroit bankruptcy attorney before filing to ensure you are making the best choice for your individual situation.
The following are some of the benefits provided by filing for Chapter 7 bankruptcy.
- The length of time a bankruptcy will remain on your record is somewhat offset by the short time needed to file which is typically only 3 to 6 months. This can mean a short wait for the relief from missed debt payments, defaults, repossessions, and lawsuits which can do further damage to your record.
- Your state provides exemptions so that much of your property will be free of being liquidated. After filing for Chapter 7, you will also be allowed to keep the salary you earn and property you purchase.
- While filing for bankruptcy will make it much more difficult to obtain a mortgage, lenders do exist who specialize in lending to “bad risks”.
- Although bankruptcy cannot eliminate alimony or child support payments, by restructuring your debts and alleviating your other financial obligations, you may find it easier to make these payments.
- Bankruptcy won’t relieve you of student loan debt but can still keep lenders from taking aggressive collection action.
- Even if your bankruptcy is transformed into a Chapter 13 due to your level of disposable income, you could still improve your financial situation by obtaining more favorable terms to repay your debts, and a Chapter 13 will allow you to hold on to your property.
Filing for bankruptcy is a serious decision which requires legal advice from a Detroit bankruptcy attorney. If you need help deciding if bankruptcy is right for you, reach out to the Law Offices of Marshall D. Schultz today!