These days, it seems so many Michigan residents are struggling financially. Financial problems can leave a person feeling stressed and in a constant state of anxiety. Those who are drowning in debt with no end in sight may have the option to file for bankruptcy. Chapter 7 bankruptcy can eliminate many types of debt, such as personal loans or credit card debt. Here are a few steps to take to file for Chapter 7 bankruptcy.
How to know when to file
For some people, despite negotiating with creditors, working with credit counselors or consolidating debt, managing debt is still a big struggle. For those who fall into this category, Chapter 7 bankruptcy might be the best and only option. However, note that filing for Chapter 7 bankruptcy can mean some assets will be lost. It varies by state, but depending on where the person lives, the home, stocks and other nonexempt assets could be at stake.
What does the filing process involve?
The Chapter 7 bankruptcy filing process usually takes 80 to 100 days from the day of filing to when debts are discharged. Hiring an attorney is not a requirement for the process, but it is highly recommended. There are a number of things a person may be required to do during the bankruptcy process. These often include taking and passing a means test, filing a petition in local bankruptcy court, taking a financial management course and undergoing bankruptcy counseling.
For those who are drowning under loads of debt with no way out, bankruptcy can give a fresh start. Although Chapter 7 bankruptcy is the most common type of bankruptcy, it should be treated as a last resort option. Like anything in life, there are consequences and drawbacks. Without question, any individual in Michigan who is considering filing for Chapter 7 bankruptcy should consider consulting a legal representative first and foremost. An attorney knowledgeable with bankruptcy laws can provide guidance throughout the filing process.