Every year, 43 percent of American families spend more than they earn. Many families will thus gain crippling debt, and bankruptcy is available only to some. Filings fell 182,000 in 2011 compared to 2010, but only because those who could benefit from bankruptcy were ineligible for it. For Michigan families considering bankruptcy, a bankruptcy attorney Michigan offers could be an option for clearing debt.
Filing bankruptcy in Michigan has a history behind it. When the Roman Republic started bankruptcy, the punishment was either death by creditors or being sold into slavery. The U.S. founders recognized bankruptcy was part of healthy risk, and left Congress to devise bankruptcy law. In keeping with the spirit of the Founders, Congress legislated bankruptcy as a civil affair, and is meant merely to clear the balance sheet of a debtor.
A bankruptcy attorney Michigan offers can help families plan for the best bankruptcy, advocate for that bankruptcy, and begin planning for a post bankruptcy world. For starters, a bankruptcy attorney Michigan offers can help families choose between a Chapter 7 bankruptcy Michigan offers, and a Chapter 13 bankruptcy michigan offers. Chapter 7 bankruptcy involves total liquidation to pay off creditors, and while it erases nearly all liabilities, it also destroys assets.
A full 16 percent of Michigan bankruptcy filings were for the softer Chapter 13. Chapter 13 is for debtors with unsecured debt less than 1,081,400 USD, and secured debt of 360,475 USD. Often, a bankruptcy attorney Michigan offers can help a family keep several assets because Chapter 13 involves loan consolidation. A house is often one asset that a bankruptcy attorney Michigan offers can help a family secure.
A bankruptcy attorney Michigan offers can also help with post bankruptcy planning. Bankruptcy destroys a credit score, but it can be rebuilt. A bankruptcy attorney Michigan offers can consult on ways to start building the credit score, and refers families to financial advisors for greater advice.
Bankruptcy should not be seen as an end. Families take risks or get involved in circumstances beyond their control. When they do, they should consult with a bankruptcy attorney michigan offers to discuss next steps.