Families across Michigan may find themselves facing financial hardship for numerous reasons. Maybe the primary wage earner for the family recently lost their job. Perhaps the parent who always stays home with the children just received a diagnosis of a serious illness.
Even those who have historically made wise choices could experience financial hardship when unexpected issues arise. Some families will eventually regain control over their financial circumstances, but others will need to seek out individualized support to bounce back from a drop in income or a sudden and unexpected surge in financial obligations.
Bankruptcy will stop aggressive collection activity and also potentially end in the discharge of someone’s remaining unsecured debts. Is a Chapter 13 bankruptcy potentially the right option for your family?
Chapter 13 bankruptcy is uniquely helpful
Every type of bankruptcy has different requirements and limitations. Some people refer to Chapter 13 proceedings as wage earners’ plans. It takes longer to complete a Chapter 13 bankruptcy than a Chapter 7 bankruptcy, but there is no obligation to liquidate personal property.
In a Chapter 7 bankruptcy, individuals have to first qualify by comparing their household income to the state median for their family size and must then liquidate property that they cannot exempt using Michigan rules. A Chapter 13 bankruptcy will not require the liquidation or sale of your assets to pay off your creditors, making it an excellent option for those with valuable personal property.
A Chapter 13 bankruptcy is also an option for those who make substantially more than the average income, which can be beneficial for successful professionals who unexpectedly have high levels of personal debt.
Learning about what different forms of bankruptcy require can help you decide the right approach to discharging your unsecured debts and getting your family’s finances back on track. With over 75 years of combined tax and bankruptcy experience, the attorneys at Gudeman & Associates can review your specific situation and help determine the best course of action to protect your family’s financial future. Contact us today to schedule a free 30-minute consultation.