In the economic state of the United States today, is not uncommon at all for individuals and their families to experience difficult financial times. Many factors such as loss of jobs, low wages, or high prices of living can all cause and contribute to financial hardships. Some cases of financial trouble are more severe than others, and individuals may be left feeling like they are running out of options. Though it is of course not something that most would want to have to resort to, filing bankruptcy is often the most viable option for individuals who are experiencing severe struggles with money. Since the process can be complicated, many people may need assistance and therefore hire bankruptcy attorneys that can provide consultation. For those in Detroit Michigan who need assistance making decisions on matters of choosing which type to file, such as chapter 7 vs chapter 13 bankruptcy, there are many bankruptcy lawyers that can help.
In 2011, the state of Michigan had a bankruptcy filing rate of 5.64 per 1,000 residents. Though bankruptcy filings have seen a national downward trend recently, it does not imply that the economy of the country is improving. This trend instead reflects that realization of debtors that bankruptcy is not a fiscal panacea.
Through financial management and careful planning, it is possible for an individual to rebuild their credit after filing for bankruptcy. When working with a bankruptcy attorney to decide between chapter 7 vs chapter 13 bankruptcy, individuals will want to know the differences so that they can make a decision that best suits them. Debtors with unsecured debts, such as credit cards, of less than 1,081,400 dollars and secured debts, such as real estate or car loans, of less than 360,475 dollars, may choose chapter 13. Rather than liquidation of assets, Chapter 13 involves debt restructuring and usually enables the debtor to retain their property. For assistance with all matters involving the process of filing for bankruptcy in Detroit, Michigan, individuals can hire a bankruptcy attorney. Find more on this here.