Being in debt and unable to pay your bills can be stressful, especially when the harassing phone calls begin. You can ignore them for a while but pretty soon they will be calling your friends, family and even your work trying to find you. Eventually you are going to have to do something to make the phone calls stop. If you have tried everything possible to get out of debt, including debt consolidation, you may need to speak to a bankruptcy attorney in Grand Rapids MI.
Many people are afraid of filling for bankruptcy because they worry that their credit will be destroyed forever. However, that is simply not true. While it is true that bankruptcy will make it more difficult to obtain new credit for a certain amount of time, so will not paying your bills and allowing them to go into default or collections. There are two types of bankruptcy that individuals may file for. A Bankruptcy Attorney in Grand Rapids MI will be able to explain them to you in detail. Here is a brief overview of each type of individual bankruptcy.
CHAPTER 7
If you have limited resources, no reliable source of income and limited debt, you will most likely qualify for a Chapter 7 bankruptcy. With Chapter 7 bankruptcy, you will be required to sell all of your non-exempt assets, including real and personal property. The money you make from the sell will be used to pay off as much of your debt as possible. The remaining debt will be forgiven as soon as your bankruptcy is discharged. You will be able to keep your exempt property, which will include wedding rings, clothing, personal household property and an older model car in some situations.
CHAPTER 13
Chapter 13 bankruptcy is slightly different than Chapter 7. For instance, you will be allowed to keep all of your property and assets, including homes and automobiles. You will be required to enter into a repayment agreement with your creditors, in which you may a certain amount of monthly payments to them over the course of three to five years. Once you have made the required payments, the remaining debt will be forgiven and the bankruptcy will be discharged.
Your attorney will be able to assist you with the entire process. A bankruptcy will give you the fresh start you need to get back on your feet financially.