As financial standards increase, the amount of cash loaned to people also increases. This is because most individuals are trying to fit in the modern lifestyle. The most worrying part is that some individuals experience difficulties when repaying debts. Many opt for bankruptcy but this is where they get trapped. The following points should be considered before a bankruptcy lawyer Grand Rapids MI is hired.
Laws have been formulated and implemented to govern bankruptcy matters. These laws have severe restrictions for anyone who wants to declare that he or she is bankrupt. Declaring that you are bankrupt is the only lawful way of getting rid of any financial setbacks surrounding you. The process of proceeding with this course of action is however difficult.
After declaring that you are broke, the judge will ask you to provide detailed information about how your money was lost. In this case, you will be mandated to present a comprehensive list of your assets as well as outstanding debts. Your assets will be categorized into two and this is based on how these possessions can be used to pay a debt. To be precise, exempt assets can not be seized to settle debts while non exempt ones can be seized. Exempt assets include personal items found in your house while non exempt ones include recreational boats, vehicles and other houses that you do not live in.
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When you file for chapter seven, the law allows you to retain your exempted assets as your unsecured dues are withdrawn.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.
Chapter thirteen enables you to settle debts over a timeframe of three to five years. The repayment plan is also logical for it involves a trustee who collects the cash from you and then sends them to your debtors. Chapter thirteen is ideal for people who would like to keep their non exempted assets intact by buying time to repay 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.
Laws have been formulated and implemented to govern bankruptcy matters. These laws have severe restrictions for anyone who wants to declare that he or she is bankrupt. Declaring that you are bankrupt is the only lawful way of getting rid of any financial setbacks surrounding you. The process of proceeding with this course of action is however difficult.
After declaring that you are broke, the judge will ask you to provide detailed information about how your money was lost. In this case, you will be mandated to present a comprehensive list of your assets as well as outstanding debts. Your assets will be categorized into two and this is based on how these possessions can be used to pay a debt. To be precise, exempt assets can not be seized to settle debts while non exempt ones can be seized. Exempt assets include personal items found in your house while non exempt ones include recreational boats, vehicles and other houses that you do not live in.
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.
Chapter thirteen enables you to settle debts over a timeframe of three to five years. The repayment plan is also logical for it involves a trustee who collects the cash from you and then sends them to your debtors. Chapter thirteen is ideal for people who would like to keep their non exempted assets intact by buying time to repay 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.
About the Author:
If you are looking for the facts about a bankruptcy lawyer Grand Rapids MI locals can pay a visit to our web pages online here today. Additional details are available at http://www.chasebylenga.com now.
No comments:
Post a Comment