As living standards and price of commodities rise, most people struggle to keep up with this pace. Some opt to taking loans as a way of affording highly priced utilities. The harsh truth is that repaying a loan requires financial commitment. There are cases of people failing to repay their debts by declaring to the court that they lack money to settle the debts. There are certain things you need to know prior to seeking legal advice from any bankruptcy lawyer Grand Rapids MI.
Several laws are being enacted and implemented to guide those who file for bankruptcy. These laws are however strict on the requirements that people ought to meet before liquidating their assets. It is important to note that liquidation is a legal method for eradicating any financial mishaps that surround you. Advocating for your liquidation rights in court is somehow difficult.
When you declare yourself bankrupt, you have to shed some light to the presiding judge regarding how you lost your money. The court will request you to submit a list of properties you own and any outstanding debts. Your property will then be divided into two classes based on their potential to settle a debt. Exempt assets such as personal items in your home cannot be retrieved in order for a debt to be repaid. On the other hand, non exempt assets such as recreational vehicles can be sold to repay a debt.
The outstanding debts that you have will also be halved based on their potential to be repaid. For secured debts, your creditors can acquire the property that you signed as collateral. The judicial system sensitizes on the need to settle secured debts to avoid losing your assets to creditors. After you complete submitting all your financial information, the judicial system will give you a specific time frame to pay secured dues. Amidst this duration, creditors are barred from filing a case 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.
Chapter seven allows you to keep all exempted assets while your unsecured debts are discharged. Here, your non exempted assets are used to settle the secured debts. You should note that debts such as child support, taxes and student loans are not dismissed. Chapter seven is ideal for anyone who earns a low income, has more debts and few assets.
If you choose to proceed with chapter thirteen, the judiciary mandates you to repay loans within a maximum duration of three years. It is also impossible to evade repaying your debtors since a trustee is assigned to you with the responsibility of acquiring the money to be paid as debt from you. The trustee submits the cash to your debtors.
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.
Several laws are being enacted and implemented to guide those who file for bankruptcy. These laws are however strict on the requirements that people ought to meet before liquidating their assets. It is important to note that liquidation is a legal method for eradicating any financial mishaps that surround you. Advocating for your liquidation rights in court is somehow difficult.
When you declare yourself bankrupt, you have to shed some light to the presiding judge regarding how you lost your money. The court will request you to submit a list of properties you own and any outstanding debts. Your property will then be divided into two classes based on their potential to settle a debt. Exempt assets such as personal items in your home cannot be retrieved in order for a debt to be repaid. On the other hand, non exempt assets such as recreational vehicles can be sold to repay a debt.
The outstanding debts that you have will also be halved based on their potential to be repaid. For secured debts, your creditors can acquire the property that you signed as collateral. The judicial system sensitizes on the need to settle secured debts to avoid losing your assets to creditors. After you complete submitting all your financial information, the judicial system will give you a specific time frame to pay secured dues. Amidst this duration, creditors are barred from filing a case 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.
Chapter seven allows you to keep all exempted assets while your unsecured debts are discharged. Here, your non exempted assets are used to settle the secured debts. You should note that debts such as child support, taxes and student loans are not dismissed. Chapter seven is ideal for anyone who earns a low income, has more debts and few assets.
If you choose to proceed with chapter thirteen, the judiciary mandates you to repay loans within a maximum duration of three years. It is also impossible to evade repaying your debtors since a trustee is assigned to you with the responsibility of acquiring the money to be paid as debt from you. The trustee submits the cash to your debtors.
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.
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