Bankruptcy Attorney Serving Ypsilanti, Michigan

Financial difficulties can arise from a number of sources, both personally and professionally. When these financial difficulties grow so significant that they cannot be overcome, it can feel as though there is nowhere to turn. Fortunately, filing for bankruptcy provides a real option for individuals or businesses that are unable to bear the strain of their financial debt. Knowing more about bankruptcy, how it works, the different types that are available, and what it can do for you in your situation is important. 

If you are trapped under a mountain of financial debt and can’t find a way out, exploring your options for filing for bankruptcy may be in your best interest. At JRB Law PLLC, you can receive the experienced legal guidance you need to make well-informed decisions about your financial future. If you are located in the Ypsilanti, Michigan area, or the surrounding communities of Belleville, Ann Arbor, Kalamazoo, or Portage, reach out today to schedule a consultation to discuss your situation. 

Understanding Bankruptcy 

While many people have heard of bankruptcy and often think they have a rough understanding of what it entails, there are many misconceptions about the process and what it means for your present and future from a financial standpoint. Though there is often a negative stigma attached to filing for bankruptcy, it is actually a useful tool to wipe the slate clean and find financial relief from crushing debt. 

If you are considering filing for bankruptcy, it’s important to know that it’s not something to feel ashamed of. People from all walks of life take advantage of the opportunity bankruptcy presents to move on from the past and start from scratch. You should also know that filing for bankruptcy is not something you should put off. There’s no time like right now to begin the process of starting over. 

Bankruptcy Options 

Depending on the specifics of your financial situation and the nature of the debt you are facing, there are different types of bankruptcy that are available to better suit you. Though bankruptcy is complex, here is a brief description of the common types and how they differ from each other. 

Chapter 7 

Chapter 7 bankruptcy, also known as “liquidation bankruptcy,” involves liquidating your “non-exempt” assets in order to pay your creditors. Contrary to what many people mistakenly believe, filing for Chapter 7 bankruptcy does not mean you are going to lose your home, have your car taken away, or be left with nothing on which you can live. In order to qualify to file under Chapter 7, you must pass the “means test,” which is determined by your annual gross income. 

Chapter 11 

Chapter 11 bankruptcy is used by large companies to restructure debt and remain open for business during the process. Partnerships, LLCs, and corporations cannot file under Chapter 13 and would not be able to continue operating under a Chapter 7 filing, so Chapter 11 becomes the most beneficial option. 

Chapter 13 

Chapter 13 bankruptcy involves establishing a debt repayment plan. This plan allows the individual filing for bankruptcy to keep their property while paying down their debt in regular installments over a three- or five-year period. As part of the Chapter 13 process, you will follow certain prescribed steps put in place by the court, including submitting your proposed repayment plan to be approved by your creditors and a bankruptcy trustee who will oversee your case. Once you have completed all steps and fulfilled your payment plan, you will be discharged from the bankruptcy process. 

Determining Which Type of Bankruptcy Is Right for You 

There are many factors that can be used to determine which form of bankruptcy will benefit you and your financial circumstances. Your amount of debt, your annual income, and other aspects of your situation will be taken into consideration. Contacting a knowledgeable bankruptcy attorney should be your first step in order to decide which type of bankruptcy is best for you. 

Why You Need a Bankruptcy Attorney 

No matter what type of bankruptcy you decide is right for your unique situation, you can benefit from the help of a knowledgeable bankruptcy attorney. Working on your own to navigate the complex landscape of bankruptcy law is a risk you don’t need to take. By working with a skilled attorney, you can feel confident in your understanding of your bankruptcy options and build a sound strategy that meets your needs.