Condsidering Chapter 7 Bankruptcy?
If you are considering filing for bankruptcy and are unsure of which type of bankruptcy is best for you, our Southfield, MI Chapter 7 bankruptcy lawyer can help you make an informed decision. Filing for bankruptcy is an important decision that requires a great amount of care and consideration.
We understand how impactful this decision is on your life, and we will work hard to ensure that you understand the full implications of your decision and that the process of filing for bankruptcy is handled efficiently, legally, and in the best manner possible for you. To discuss your situation with a lawyer, contact our team at Gudeman & Associates, P.C. to schedule a consultation today.
Understanding Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also commonly referred to as “liquidation bankruptcy” or “straight bankruptcy.” This type of bankruptcy is for people who simply cannot afford to pay debt to unsecured creditors. This may include credit card debt, medical debt, and more. Chapter 7 bankruptcy is designed to eliminate debts quickly, often within four months or less. It will temporarily prevent foreclosures or repossessions of your property, but Chapter 7 bankruptcy does not include a repayment plan. If you hope to save your property by catching up on payments, filing for Chapter 13 or Chapter 11 bankruptcy may be best for you.
Benefits of Chapter 7 Bankruptcy
There are many potential benefits of Chapter 7 bankruptcy. Some benefits may be more helpful than others depending on your unique situation. Our Southfield Chapter 7 bankruptcy lawyer will help you understand the benefits of Chapter 7 bankruptcy and make an informed decision on if it is the right step for you.
Some benefits of Chapter 7 bankruptcy are that it temporarily prevents home foreclosure and car repossession, it involves no repayment, it can eliminate credit card debt and personal loans, it can discharge medical bills, it can resolve certain tax debts, and it is a relatively quick process.
Chapter 7 Bankruptcy Means Test
To qualify to file for Chapter 7 bankruptcy, you must pass a means test. This test analyzes income over the past six months and is meant to determine if an individual filing for Chapter 7 bankruptcy is receiving enough income to gradually repay debts. Typically, individuals with annualized monthly income less than the median household income for a household for their size will pass the means test. If this is not the case for you, there are still potential ways to pass the means test. Our Southfield Chapter 7 bankruptcy lawyer will investigate your situation and determine if there are circumstances that make you eligible to file for Chapter 7 bankruptcy.
The Importance of Legal Representation
With a process as complicated and important as filing for bankruptcy, enlisting the aid of an experienced Chapter 7 bankruptcy lawyer is imperative. Our team will consult with you on your situation, advise you on the best steps forward, and represent you throughout the entire process of filing for bankruptcy. We are here to serve as a source of comfort and guidance during a difficult time, and to help you make the best decision for your future. To discover more about how we can help you, contact Gudeman & Associates, P.C. today.
How Bankruptcy Can Protect Your Assets
Filing for bankruptcy with a Soutfield, MI Chapter 7 bankruptcy lawyer can be a daunting decision, but it can also provide significant relief and protection for individuals facing overwhelming debt. One of the key benefits of Chapter 7 bankruptcy is its ability to help protect your assets from creditors and provide you with a fresh financial start. Here’s how Chapter 7 bankruptcy can help safeguard your assets and provide you with much-needed debt relief.
Immediate Protection From Creditors
One of the most significant advantages of filing for Chapter 7 bankruptcy is the automatic stay, which goes into effect as soon as you file your bankruptcy petition. The automatic stay prohibits creditors from taking any further collection actions against you, including foreclosure, repossession, wage garnishment, or harassing phone calls and letters. This immediate protection can provide you with much-needed relief from the stress and anxiety of dealing with aggressive creditors.
Liquidation Of Non-Exempt Assets
Chapter 7 bankruptcy involves the liquidation of non-exempt assets to pay off your creditors. However, many people mistakenly believe that they will lose all of their assets in Chapter 7 bankruptcy. In reality, each state has its own set of exemptions that allow you to protect certain types and amounts of property from liquidation. By carefully planning and utilizing available exemptions, you can protect most, if not all, of your assets from liquidation in Chapter 7 bankruptcy. A knowledgeable lawyer can walk through all your assets and let you know what is safe.
Discharge Of Unsecured Debts
Another key benefit of Chapter 7 bankruptcy is the discharge of unsecured debts, such as credit card debt, medical bills, personal loans, and utility bills. Once your Chapter 7 bankruptcy case is successfully completed, these debts are eliminated, and you are no longer legally obligated to repay them. This can provide you with a fresh financial start and allow you to move forward with your life without the burden of overwhelming debt hanging over your head.
Preservation Of Future Income
In addition to protecting your current assets, a Southfield Chapter 7 bankruptcy lawyer can also help protect your future income from being garnished by creditors. Once your debts are discharged in Chapter 7 bankruptcy, creditors are prohibited from pursuing further collection actions against you. This means that your future earnings are protected, allowing you to rebuild your finances and work towards a brighter financial future. If you hear from creditors even after filing, you should contact your attorney to let them know.
If you’re considering filing for bankruptcy with a Southfield Chapter 7 bankruptcy lawyer and want to learn more about how this process can help protect your assets, don’t hesitate to contact the experienced attorneys at Gudeman & Associates, P.C. We understand the complexities of Chapter 7 bankruptcy law and can provide you with personalized legal guidance and representation throughout the bankruptcy process. Contact us today to schedule a consultation and take the first step towards achieving financial freedom and peace of mind. Reach out today to get started.