Are you overwhelmed with debt? Have you been searching for solutions to your money problems? Bankruptcy might be the best answer. While it can seem intimidating at first, filing for bankruptcy is an option that you should consider if you’re struggling to make ends meet. Whether you have credit card bills, finance company loans, personal loans, unpaid utilities or rent payments, bank loans for mortgages or vehicles, medical debts or hospital expenses, court judgments, business loans, or certain types of tax debts, bankruptcy can provide some relief from debt collectors and help get you back on your feet. Here’s a look at the types of bankruptcy available in Auburn Hills and what they mean.
Also known as “liquidation bankruptcy,” Chapter 7 is one of the most common types of bankruptcy filed by individuals or businesses. This type of bankruptcy allows debtors to discharge unsecured debts such as credit card bills and medical bills. This means those debts do not have to be paid. However, in order to qualify for this type of bankruptcy, debtors must meet certain criteria and pass a means test. The means test determines whether the debtor has sufficient income to repay their debts. If you are able to pay, you will not qualify.
This type of bankruptcy is also available for individuals who have regular income but are struggling with their debts. Chapter 13 involves reorganizing your existing debt into a manageable repayment plan that lasts up to five years. During this period, debtors will be expected to make regular payments towards their debts as per the terms set forth in the repayment plan. This can help them avoid foreclosure on their home, or have their car repossessed, while still allowing them to pay down their debts over time without accruing additional interest or late fees.
There are several other types of bankruptcies available, such as Chapter 11 (for businesses) and Chapter 12 (for farmers). Depending on your situation, one may be more beneficial than another so it’s important to speak with a knowledgeable attorney who can advise you on which chapter would best suit your needs.
Deciding whether bankruptcy is the right solution for you can be difficult and overwhelming, however, it doesn’t have to be that way! With experienced bankruptcy attorneys in Auburn Hills like Karen E. Evangelista, you can get answers about all of your questions related to filing for bankruptcy, and she can help come up with a plan that works best for you and your financial situation.
Karen E. Evangelista, P.C., is here to help people dealing with seemingly hopeless amounts of debt in the Auburn Hills area. Our experienced bankruptcy attorney has been serving Auburn Hills’ legal needs for over 30 years. She has helped those in our community by providing solutions with those facing foreclosure, repossession of their personal belongings, or other issues due to being behind on payments. Get back on your feet today; contact Karen E. Evangelista, P.C., for a consultation!