One of the most important comforts of life is stability with money. When you lack money, it’s easy to feel uneasy and out of place. Unfortunately, some situations may force a person to file for bankruptcy. If you are in a place where bankruptcy is in your near future, it could be helpful to hire a bankruptcy attorney in Madison heights. A bankruptcy attorney can help you, both emotionally and logistically, through the bankruptcy process.
Before knowing whether it’s time to hire a bankruptcy attorney, it’s important to understand exactly what bankruptcy is. When somebody files for bankruptcy, it means that they have more money owed in the form of debt than they can feasibly manage to pay off. In declaring bankruptcy, a court examines the assets and liabilities, or what a person has to their name and what they have owed and decides if they should discharge the person’s debts. This means that the applicant is no longer required to pay their debts. If the court determines that you have enough assets to pay your debts, your case could be dismissed.
There are different types of bankruptcy that you can file. Typically, most people will fall into one of three categories: Chapter 7, Chapter 11, and Chapter 13. Each type of bankruptcy has its own benefits and drawbacks, so it’s important to talk with a bankruptcy attorney to identify which option would be best for you.
There are many benefits and drawbacks of bankruptcy. No two cases of bankruptcy are the same. For this reason, it’s important to talk to a bankruptcy attorney to discuss if you have alternative options for bankruptcy. In general, the main benefit of bankruptcy is not having to pay back the debt that you owe. For people with an insurmountable amount of debt, this can seem appealing. However, it’s important to consider the potential downsides of your bankruptcy.
In bankruptcy, not all types of debt can be discharged. For example, any student loans, alimony, and child support are not included. Further, just because your debt is discharged doesn’t mean you don’t lose anything. In most cases of bankruptcy, some of your assets will be seized to cover the cost of your debt. These assets might include but are not limited to real estate, cash and savings, stocks, vehicles, and other material goods like furniture and artwork. Other drawbacks of bankruptcy include the length of time that the process takes and significant credit score damage.
The decision to file for bankruptcy can be stressful and confusing. It could be helpful to have an experienced bankruptcy attorney in Madison Heights on your side. Karen E. Evangelista, PC, has over 30 years of experience in bankruptcy law and can walk you through your bankruptcy so you are on the right track to financial stability again. To schedule an appointment and discuss how we can best help you, contact us today.