Bankruptcy has certain stigma associated with it, and many bankruptcy myths are circulated. Because of this, it can be difficult to get a clear overview of what bankruptcy entails. The process of bankruptcy will differ depending on whether you file for Chapter 7 or Chapter 13.
However, some things will be true no matter which bankruptcy Chapter you file for. The following are things that you can expect to happen when you file for bankruptcy as an individual in Michigan.
You will benefit from an automatic stay
Since you are struggling with debts, you are likely subject to frequent communication from creditors and debt collectors. This can be extremely stressful, but the good news is that this will stop almost immediately after you file for bankruptcy. This is because an automatic stay will be put in place, meaning that creditors can no longer take action on your debts.
You will need to pay a filing fee
You should be prepared for the fees associated with bankruptcy. Filing fees alone can be several hundred dollars, but it is important to weigh this up with the financial benefits of bankruptcy.
You may benefit from a debt discharge on completion
If you jump through all the hoops that your bankruptcy filing demands of you, it is likely that you will benefit from a debt discharge. This means that some or all of your remaining debts will be completely written off.
If you are feeling overwhelmed by debts and you are unsure of how you can pay them off, you should take action to explore how bankruptcy could help you to solve your financial problems.