The number of bankruptcies that are filed in the U.S. every year might surprise you. Roughly 1 out of 70 American households file for bankruptcy. The Pittsburgh Penguins filed for bankruptcy twice, once in 1975, and once in 1998, making them the only sports franchise to do so. Financial hardship strikes many people in different ways, at different times, and bankruptcy can often be the only solution that makes sense. And bankruptcy attorneys are often the first people these debtors contact for help.
Bankruptcy attorneys will be able to explain the process of filing bankruptcy, how the law works, and be able to answer any questions regarding the filing process. They can determine if bankruptcy is the right course of action given a particular financial situation, and also explain which filings would work best for a family or individual.
Some of the most common bankruptcies filed include Chapter 7 bankruptcy and Chapter 13 bankruptcy. In Chapter 7 bankruptcy, debtors often lose their property, and have most of their assets liquidated to cover the costs of their debt. Chapter 13 bankruptcy rules usually indicate that debtors need to pay off their creditors within a 3 to 5 year time frame. They are asked to use their own income to do this, and do not have to lose their home or assets. But if the debtor has an irregular, or unsteady income, they can be denied being able to file a Chapter 13 bankruptcy. Debtors must also have unsecured debts that total less than $1,081,400, and secured debts that equal less than $360,475, to be considered for this filing.
After determining which filing to go with, the bankruptcy attorney might also be able to explain how credit can be affected by bankruptcy. It will certainly have a negative affect, but the financial situation that led to bankruptcy would have already given the debtor bad credit. But after bankruptcy, debtors can begin to rebuild their credit with careful planning and financial management advice from qualified professionals.
So, if you need to file for bankruptcy, remember that you are not alone. Thousands of Americans file every year. With the help of a great bankruptcy attorney, and some work on your part, you can be on your way to getting your finances back on track. Learn more at this link: michiganbankruptcyfirm.com