Chapter 7 Bankruptcy offers a debtor the opportunity for a fresh start when overwhelmed by financial burdens. The reasons for filing can be many. Individuals or married couples may file due to overwhelming credit card debt. Other reasons for filing may include an outstanding lawsuit judgment, wage or bank account garnishment, unpaid medical bills, or a deficiency after a home foreclosure. The typical bankruptcy filer may be facing one or more of the above mentioned problems.
However, these debts are typically discharged in Chapter 7 bankruptcy. After a thorough review of the debtor's financial affairs, a qualified bankruptcy attorney can determine whether Chapter 7 bankruptcy is the best option in dealing with the debt.
An individual who is eligible for bankruptcy relief is permitted to protect (exempt) property from their creditors. A debtor can elect to protect property under federal or state law in Michigan. Although electing Michigan law to protect property is less common, in some cases (usually involving residential home equity) it is the best method of asset protection. Again, a knowledgeable bankruptcy practitioner can evaluate your particular cirmcumstances and make a recommendation.
Federal law is usually more generous in protecting personal property such as automobiles, household items, and cash. Both federal and state law protect retirement assets including pensions, individual retirement accounts (IRAs), and deferred compensation plans such as a 401(k) or 403(b) accounts.
Unemployment, illness, and other calamities can cause financial problems for anyone. Vivian Law Firm PLC is here to help. Stop the worry caused by finacial stress. For a consultation, call 734-446-0340, or visit our website at vivianlaw.com for more information.