No one ever really wants to file for bankruptcy, but there are times when it can be unavoidable for many. People will want to file for bankruptcy if they have quite a bit of debt and no way to possibly pay it off during their lifetime.
The main purpose of bankruptcy is to give everyone a fresh start in life without a mountain of debt hanging over their head, while also allowing their creditors to collect at least some of the money that is owed to them. After paying their creditors the amount that the bankruptcy courts tell them to, they will no longer be responsible for any of their remaining debt to those creditors.
There are six different types of bankruptcy filing options, although, only two of them are meant for regular people. Chapter 7 bankruptcy will find people liquidating everything that they own to pay off their debts, while Chapter 13 will allow a person to keep their home as they are repaying all their creditors. However, both options will allow everyone to keep most of their property and assets in the end if they qualify for certain exemptions.
The other four bankruptcy options include Chapter 9, Chapter 11, Chapter 12, and Chapter 15. Chapter 9 can only be filed by a municipality and basically requests a reorganization process for that area. Chapter 11 is usually used by commercial organizations as they try to reorganize their assets to pay off debts.
Chapter 12 is the bankruptcy code that farmers and fishermen need to file under if their business is not going well due to circumstances out of their control. Through this process, a bankruptcy lawyer can help them create a plan to get out of debt within three years, unless the court allows for a longer time frame.
Chapter 15 is for cross-border cases, where the creditor and debtor live in different countries.
Everyone is encouraged to hire a bankruptcy lawyer to assist them through the entire bankruptcy process, so that they can file for the proper chapter of bankruptcy. After all, the entire bankruptcy system is quite complex and there are many legal terms and phrases that people may not know or understand. It can be quite easy for a person to get lost in the process, which is why the guidance of a bankruptcy lawyer is always a good option.
Anyone that chooses to not hire a bankruptcy lawyer may find themselves worse than they were before, especially if they need to pay their creditors more than they should in a shorter amount of time. The goal of bankruptcy is to get out of debt and move on with life, not continue to feel stuck for a longer period of time.
Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.