Sterling Heights Bankruptcy Lawyers

Sterling Heights Bankruptcy Lawyers

If you are experiencing crushing debt, bankruptcy may be an option. While many people consider bankruptcy a form of defeat, it can actually provide you with the lifeline you need to set your finances straight and get a fresh start on the life you’ve been looking for. One of the most important steps you can take toward this end is consulting with an experienced Sterling Heights bankruptcy lawyer early in the process. 

Chapter 7 and Chapter 13 Bankruptcy

When it comes to personal bankruptcy, there are two options that include both Chapter 7 and Chapter 13. A better understanding of each form of bankruptcy can help you make better decisions for you in your unique situation.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a quick and relatively straightforward process that leaves you with assets that are essential to your daily life and won’t require you to pay off your pending debts, but it comes with a significant downside. Chapter 7 is a liquidation process that has no mechanism for addressing delinquent payments, which means you could lose secured debts, such as your home and car. There is, however, an exemption process that allows you to retain specific assets, including:

• Up to a specific amount in both home and car equity
• Certain personal possessions, such as some household goods, jewelry, and tools
• Retirement plans and pensions, which make it important not to cash these financial tools out in an attempt to forego bankruptcy
• Life insurance policies 

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, on the other hand, requires you to repay those debts that you’re reasonably able to repay – once your secured debts are addressed, which can include your home and car. Chapter 13 is generally reserved for those who are employed and have an income that lends itself to a repayment plan. A Chapter 13 bankruptcy affords you the ability to salvage your finances, keep your home and car, and pay those debts you reasonably can over the course of the bankruptcy, which can span from 36 to 60 months. 

The Bankruptcy Process

The bankruptcy process begins with discussing your best options with a seasoned bankruptcy attorney. If you have never filed for bankruptcy before and your finances are mired in debt, you likely qualify to proceed. From here, you’ll need to determine the bankruptcy option that suits your needs, which will begin the bankruptcy process. 

As you move forward, you’ll likely file an automatic stay that protects you from ongoing debt collection. You’ll also be allowed a homestead exemption that affords legal protections for a specified amount of equity in both your house and your car.

Speak to an Experienced Sterling Heights Bankruptcy Lawyer Today

The trusted Michigan bankruptcy attorneys at Aiello & Associates have reserves of experience helping clients like you take control of their finances and move beyond the debt that impeded their progress. We’re here for you, too, so please don’t wait to contact us for more information about how we can help today.