Considering Bankruptcy? Visit my Bankruptcy Blog at www.michiganbankruptcyblog.com
Filing a personal bankruptcy can be a valuable and constructive solution for consumers overwhelmed by financial obligations. While it is not the only solution for such difficulties and is always a step taken as a last resort, the filing of a bankruptcy can stop harassing collection attempts and can, in certain circumstances, prevent an eviction or stay a foreclosure.
Article I, Section 8 of the US Constitution specifies the necessity of declarations of bankruptcies, and you should have confidence that inquiring about the possibility of declaring bankruptcy as a solution to insurmountable financial pressure is nothing to be embarrassed about.
The Hilla Law Firm, PLLC specializes in providing 2 types of bankruptcy services for individuals:
CHAPTER 7 – “STRAIGHT” BANKRUPTCY
Chapter 7 bankruptcies, also known as “straight” bankruptcies or “liquidation” bankruptcies, are designed to offer you complete relief from your financial burdens, staying and settling all of your outstanding debts and giving you the opportunity to make a clean start in life. A Chapter 7 bankruptcy is the most affordable bankruptcy you can pursue—but there are some limitations on eligibility.
CHAPTER 13 – “REORGANIZATION” BANKRUPTCY
Chapter 13 bankruptcies are not liquidations of debt as Chapter 7 bankruptcies are. Instead, they are personal “reorganizations,” something like what corporations do when they file Chapter 11 bankruptcy, except on an individual level. In a Chapter 13 bankruptcy, you make payments to your creditors under a court-approved payment plan for a period of 3-5 years. It is an excellent way to stop a foreclosure or strip a lien from an under-secured home. However, Chapter 13 bankruptcies involve some strict eligibility standards.