Filing for bankruptcy can help if you are finding it challenging to pay back your debt. Bankruptcy gives people the chance to start all over again when their finances have collapsed. However, bankruptcy has a lot of advantages but may not be the best option for every condition. Contact the bankruptcy attorneys at Gudeman & Associates If you are considering filing bankruptcy for the first time in Port Huron, MI.
What Is Bankruptcy?
Bankruptcy is a legal proceeding where you let the judge know you can’t pay your debts anymore. The judge and the court trustee will examine your assets and liabilities and decide whether to discharge some of your debts. This means you’re no longer legally required to pay people you owe. However, the court could dismiss the case if it thinks you have enough assets to pay those bills.
What Are the Types of Bankruptcy?
Here are the types of bankruptcy:
- Chapter 7: The court sells all your assets to pay back as much debt as possible and eliminate the outstanding debt.
- Chapter 9: Repayment plan for schools, towns, and cities to pay back their debt.
- Chapter 11: Creates a plan for managing your business while repaying your debt.
- Chapter 12: Lets farmers get on a payment plan for their debts.
- Chapter 13: The court approves a payment plan to repay your debts over three to five years.
- Chapter 15 Bankruptcy: Handle international bankruptcy cases.
What Can Bankruptcy Do?
Bankruptcy makes it possible for you to:
- Stop foreclosure on a home.
- Lower monthly payments on some debts.
- Prevent repossession of personal property.
- Eliminate the legal responsibility to pay your debts.
- Debt collection harassment, stop wage garnishment, and other similar collection activities.
What Can Bankruptcy Not Do?
Bankruptcy cannot resolve every financial problem. In bankruptcy, it’s not possible to:
- Modify secured creditors.
- Protect all co-signers on their debts.
- Discharge debts that are acquired after you file for bankruptcy.
- Expensive items acquired before filing bankruptcy.
- Discharge certain debts such as alimony, child support, most student loans, criminal fines, taxes, and court restitution orders.
How To File For Bankruptcy
- Know the kind of bankruptcy to file.
- Gather the required documents.
- Take a course for credit counseling.
- Fill and file your bankruptcy paperwork.
- Send all the required documents to your bankruptcy trustee.
- Meet with your bankruptcy trustee.
- Finish the bankruptcy process.
Documents Need To File for Bankruptcy
A lot of paperwork is required to file for bankruptcy. Here is what you need:
- Tax returns
- Income documents
- Mortgage information
- Vehicle information
- Retirement information
- Bank account statements
- Means of Identification
- Other documentation showing any debts or expenses.
Contact Gudeman & Associates To File For Bankruptcy In Port Huron MI
At Gudeman & Associate, our Michigan bankruptcy attorney has years of experience helping people file for bankruptcy and get a fresh start. Whether you need help with Chapter 7, Chapter 13, or other forms of bankruptcy, our legal team can help you. Call us today at 248-629-2769 to speak with an attorney.
Royal Oak Michigan 48067