With an increase in living standards, most people are trying hard to afford highly priced commodities by taking loans. Consequently, concerns are rising over people declaring that they are bankrupt. When in need of a proficient bankruptcy lawyer Grand Rapids MI, the following tips will guide you on how to proceed.
The good thing about the modern judicial system is that laws meant to oversee bankruptcy cases have been drafted and implemented. As a person who wants to seek pardon from the court regarding your inability to pay a certain debt, there are certain requirements you should meet. Declaring how bankrupt you are in court can be a clever option especially if you are in a financial crisis.
When you declare yourself bankrupt, you have to shed some light to the presiding judge regarding how you lost your money. The court will request you to submit a list of properties you own and any outstanding debts. Your property will then be divided into two classes based on their potential to settle a debt. Exempt assets such as personal items in your home cannot be retrieved in order for a debt to be repaid. On the other hand, non exempt assets such as recreational vehicles can be sold to repay a debt.
Your outstanding debts can also be categorized into two. Secured debts are loans that creditors can seize your property as collateral. Non seized debts on the other hand do not have any collateral. The court usually considers secured debts as important because when they are not paid creditors are likely to seize your property as collateral. Once you have submitted all required information to the court, you will be given some time to clear secured debts. During this duration, your creditors can not file a lawsuit against you.
The law allows people to either file for chapter seven or thirteen based on their income capabilities. These chapters have contrasting policies on how long an individual should take to settle outstanding debts. Before choosing one of these two, you should enlist the help of a bankruptcy lawyer.
When you file for chapter seven, the law allows you to retain your exempted assets as your unsecured dues are withdrawn. In this context, your non exempted property will be utilized to settle any outstanding secured debt. Dues such as taxes, student loans and child support can not be evaded. Law experts consider chapter seven to be ideal for low income earners who have few assets and more debts.
When you file for chapter thirteen, you are mandated by the law to clear outstanding dues within a period of three and five years. It is difficult to evade this repayment policy since payments are collected from you by a trustee. These payments are then sent to your creditors. You can file for chapter thirteen if you want to retain your non exempted property and get more time to fully repay your debts.
Bankruptcy laws also recommend that you need to consult with a credit counselor six months before declaring yourself bankrupt. You are also mandated to sign up for a money management program before repaying your debts. You should proceed with caution because filing for a chapter seven can hinder your chances of securing a loan or a mortgage in future.
The good thing about the modern judicial system is that laws meant to oversee bankruptcy cases have been drafted and implemented. As a person who wants to seek pardon from the court regarding your inability to pay a certain debt, there are certain requirements you should meet. Declaring how bankrupt you are in court can be a clever option especially if you are in a financial crisis.
When you declare yourself bankrupt, you have to shed some light to the presiding judge regarding how you lost your money. The court will request you to submit a list of properties you own and any outstanding debts. Your property will then be divided into two classes based on their potential to settle a debt. Exempt assets such as personal items in your home cannot be retrieved in order for a debt to be repaid. On the other hand, non exempt assets such as recreational vehicles can be sold to repay a debt.
Your outstanding debts can also be categorized into two. Secured debts are loans that creditors can seize your property as collateral. Non seized debts on the other hand do not have any collateral. The court usually considers secured debts as important because when they are not paid creditors are likely to seize your property as collateral. Once you have submitted all required information to the court, you will be given some time to clear secured debts. During this duration, your creditors can not file a lawsuit against you.
The law allows people to either file for chapter seven or thirteen based on their income capabilities. These chapters have contrasting policies on how long an individual should take to settle outstanding debts. Before choosing one of these two, you should enlist the help of a bankruptcy lawyer.
When you file for chapter seven, the law allows you to retain your exempted assets as your unsecured dues are withdrawn. In this context, your non exempted property will be utilized to settle any outstanding secured debt. Dues such as taxes, student loans and child support can not be evaded. Law experts consider chapter seven to be ideal for low income earners who have few assets and more debts.
When you file for chapter thirteen, you are mandated by the law to clear outstanding dues within a period of three and five years. It is difficult to evade this repayment policy since payments are collected from you by a trustee. These payments are then sent to your creditors. You can file for chapter thirteen if you want to retain your non exempted property and get more time to fully repay your debts.
Bankruptcy laws also recommend that you need to consult with a credit counselor six months before declaring yourself bankrupt. You are also mandated to sign up for a money management program before repaying your debts. You should proceed with caution because filing for a chapter seven can hinder your chances of securing a loan or a mortgage in future.
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