The Truth About Bankruptcy In 2018

Many people these days find themselves in serious financial trouble and things have gotten so bad that they feel that they don’t know what to do anymore. Being in that situation has to be extremely scary as your creditors are not likely going to be understanding when you cannot pay them even the minimum amount due.

 

It gets even worse for you if you own your home and you are not able to afford your mortgage and the bank is threatening to take away your home. There is are not really whole on of things for you to do if you have gotten to the point where you can longer afford make all of your payments. One of the last resorts is a legal proceeding called bankruptcy.

What is bankruptcy

A bankruptcy is a legal proceeding in which you face a judge and you tell them that you no longer have the means to continue to pay your debts. The judge will appoint a trustee and they will evaluate your debts and your income in order to determine if they think your debts should be discharged. Fortunately, if you own your home, a foreclosure can be stopped, and you will not lose your home. However, there are certain debts that are not covered by bankruptcy and you will still responsible for paying them once your bankruptcy has been discharged.

 

Here are a few examples of debts that cannot be discharged by a bankruptcy;

  • Student Loans
  • Tax debts, fines or penalties from the government
  • Court-ordered child support payments
  • Court ordered alimony payments

 

Filing Bankruptcy will temporarily stop the harassing phone calls from creditors wanting their money, but once you have filed bankruptcy, they must immediately cease all forms of contact until after your bankruptcy has been finally decided by the judge. All decisions by the courts are final and when they discharge your case you will ready to start over.

 

However, you might really want to be sure that you think it completely through because you will have poor credit for many, many years once it hits your credit report. Once it is where it normally stays for at least 7 years and it will likely keep you from getting any new credit.

 

There are things that you can consider before taking the bankruptcy route that will not put your credit at risk and that includes finding a lender to request a debt consolidation loan. This will make it possible for you to pay off the debts and stave off foreclosure and bankruptcy.

 

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.

Why Should You File for Bankruptcy?

You are always going to have bills to pay, but what happens if they come in faster than you can pay them, or you are barely paying the minimum payment every month?  You may feel like you are drowning in debt, especially if you need to continue using your charge cards to pay for everyday necessities.

While filing for bankruptcy is never a person’s top choice, you may have no choice but to hire a bankruptcy lawyer, so you can get back on track with your life.  After all, once you have gone through the process and then work hard to improve your credit, you will find that your life is much easier in the future.

An attorney specializing in bankruptcy can walk you through all the steps of the process, starting with whether or not you have a good reason to file.  Your bankruptcy lawyer may even encourage you not to file for bankruptcy if they do not think that you have a good enough reason.

Here are 5 reasons why you should file for bankruptcy:

  1. Your Home is in Foreclosure

A bankruptcy will immediately put a stop to the foreclosure on your home.  This is important, even if you are not planning on staying in your home, because you may not need to pay the difference of the unpaid mortgage balance if the proceeds from the sale are not enough.

  1. You are Being Evicted

If you happen to rent an apartment or a house, filing for bankruptcy can prevent you from being evicted.  You will still need to catch up on your rent payments, but a bankruptcy can give you a little more time.

  1. Your Car is Being Repossessed

Filing for bankruptcy can prevent a lender from repossessing your car if you are behind on payments.  This will allow you to catch up on payments, so you can keep your car.

  1. You Have Medical Debt

If you have major medical debt from an illness, you should talk to a bankruptcy lawyer, so you are not responsible for all those bills.  They can give you your options, so you do not lose your home or other assets.

  1. You Just Got Divorced

Financial changes occur after a divorce and you may find that it is difficult to live the lifestyle that you are used to with just your income.  If you find yourself in debt after getting a divorce, you will want to speak to an attorney specializing in bankruptcy to see what options you may have.

 

No one ever wants to have a lot of debt to deal with, but bankruptcy may or may not be your best option.  They only way you will know if you should file is to speak with a bankruptcy lawyer and see what they recommend for the situation that you are in.

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.

Getting Your Financial Future in Order with Bankruptcy

Although we don’t intentionally do it, sometimes we make ill-advised financial moves that lead to bankruptcy. While filing for bankruptcy can provide a reprieve for those who are unable to repay their debts, there are consequences which may affect your future, for instance:

  • Bankruptcy may place some restrictions on your employment or running a business
  • It doesn’t necessarily release from all debts, and your trustee may sell all your assets
  • Your name may permanently appear on the National Personal Insolvency Index (NPII)
  • You must inform a credit provider of your bankruptcy when trying to obtain future credit
  • While bankruptcy lasts for three years and a day, your trustee can lodge an objection to extend the bankruptcy for up to eight years

Do not be discouraged because there is life after bankruptcy. First, a good bankruptcy attorney can help you in initializing a debt management plan and ensure that you attend credit counseling sessions where you can receive free advice on important steps to take in the future to help you abate the damaging impact of insolvency.

There is no denying that bankruptcy can be a daunting and very emotional decision, however, having a bankruptcy lawyer by your side, he or she can help you find various debt relief options that may be available to you and most importantly, he or she can stop creditors from harassing you. It is also your bankruptcy attorney’s duty to help you negotiate, review and sign any reaffirmation agreements on secured property that you want to keep. Your bankruptcy attorney may appear in further court required appearances on your behalf to satisfy the bankruptcy court’s administrative requirements. While that is happening, consider the following ways of getting your financial future in order after filing for bankruptcy:

  • Stick to a budget

If living beyond your means is what may have got you in a bankruptcy pickle, creating and sticking to a realistic budget will help you become extra vigilant about your finances and prevent you from incurring unnecessary debts.

  • Set up automatic bill payments

One of the single, most important things you can do to restore your finances and your credit is making it a priority to pay all your current bills on time and offset any existing bills that you may have accrued in the past.

  • Get a secured credit card

By obtaining a secured credit card, you start depositing a prearranged amount of money into a bank account, which becomes your credit limit. Charging small amounts each month and repaying your debts as agreed is yet another strategy to rebuild your credit rating after bankruptcy.

  • Save

Now that you’re free from most of the debt, it’s up to you to manage your money. Start by building an emergency fund. Also look for financial coaching offered by various financial advisers to help you in managing and keeping your finances in check.

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.

When Chapter 13 Bankruptcy Is Better Than Chapter 7

If you’ve reached the point where you’re swimming in debt and can’t pay your bills, you may be wondering which type of bankruptcy is best. You may need a Chapter 7 bankruptcy lawyer or a Chapter 13 bankruptcy attorney. There are differences between each type.

Bankruptcy is never a simple process in the United States. Each type depends on your current income, assets, debts, and future financial goals.

Chapter 7 bankruptcy is a type of liquidation bankruptcy that will clear out any unsecured debts you may have, including medical bills, and credit card balances. To declare Chapter 7 bankruptcy, you must currently have no income or little income. If you make over a certain amount of money, you’ll automatically have to claim for Chapter 13 bankruptcy.

Chapter 13 bankruptcy is a type of reorganization bankruptcy. You must have a regular income and be able to pay back a portion of your debts through a repayment plan. There can be many benefits for filing for this type of bankruptcy than Chapter 7.

Chapter 13 bankruptcy will allow you to catch up on your missed mortgage payments. It may also allow you to clear unsecured liens on your house. This means that you will be able to keep your house, unlike filing for Chapter 7 where you can lose your property. You may also keep your nonexempt assets. How it works it that you pay back all or a portion of your debts through a repayment plan. This plan is based on your current income against expenses, and what types of debt you may have. Therefore, it’s commonly referred to as “reorganization bankruptcy”.

Another benefit is that Chapter 13 will allow you to get caught up with car loans without losing your car, and to pay off other non-dischargeable debts including alimony or child support arrears. In order to hire a Chapter 13 bankruptcy attorney, you must be an individual and not a business. For Chapter 13, you must not have more than $394,7255 of unsecured debt or $1,184,200 of secured debt. While the discharge is a lot longer with Chapter 13 than Chapter 7, 3-5 years versus 3-5 months, you’ll receive a full discharge.

It’s important to note that if you own property, Chapter 13 is a lot better than Chapter 7, as debtors will be able to keep all their property, whereas the trustee in Chapter 7 will sell your property to pay off your creditors. Your liens will also be stripped in Chapter 13, whereas in Chapter 7 they are not, leaving you with future debt loads to pay off in the future.

Before deciding which type of bankruptcy is right for you, you should talk to a Chapter 7 bankruptcy lawyer, or a Chapter 13 bankruptcy attorney, to get the best advice that pertains to your financial situation. You may just discover that you do qualify for Chapter 13 and will be able to keep your house and car!

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.

Not All Debts Are Treated Equally When Filing For Bankruptcy

With a struggling economic climate, millions of people file for bankruptcy every year for varied reasons, most notably due to medical expenses, reduced income or job loss. According to US bankruptcy court statistics, personal bankruptcy has increased at an alarming rate and not just as a result of irresponsible spending, but because something like a divorce means taking on a partner’s debt if you had “regrettably” co-signed or opened joint accounts with them.

Filing For Bankruptcy

Unexpected catastrophes can also quickly drain savings that took years to accumulate including mountains of student loans, the rising costs of utility payments, inflation, foreclosure the list is endless. Bankruptcy laws are in place to give people whose finances have collapsed and need a second chance to start over. According to statistics from the American Bankruptcy Institute, nearly 95% of Chapter 7 bankruptcy cases decided in 2016 were discharged, meaning the individual was no longer legally required to pay the debt. But what about the other 4.5%?

If you are contemplating bankruptcy, you should consider discussing your options with an experienced bankruptcy attorney who works on liquidation bankruptcies where most of your debts are discharged or liquidated under bankruptcy law. A bankruptcy lawyer will also help you in compiling all your financial records, including debts, assets, income, and expenses.

The Length of Bankruptcy Process

Once you have filed for bankruptcy, the process usually takes six months or longer to complete, but the good thing is that during this time it triggers the automatic stay that prevents creditors from calling you, suing you, sending you letters, or even repossessing your property.

Items Not Discharged In Bankruptcy

When your petition is accepted, your case is assigned to a court trustee who then sets up a meeting with your creditors that you must attend. But not all petitions are accepted, for example; student loans are not discharged under a declaration of bankruptcy owing to the fact they are funded or guaranteed by the government and students are required to pay them off once they start working.

Another example of a non-dischargeable that can’t be in a Chapter 7 bankruptcy at are debts from a divorce because they are owed to a spouse but not as a domestic obligation. However, they can be included in a chapter 13 bankruptcy provided the debt becomes part of a payment plan, and the overdue payments will be continued and paid in full.

A debt incurred through fraudulent means, including one that was obtained to take advantage of the bankruptcy code, cannot be discharged. Unemployment benefits overpayments that you may be required to repay the excess, tax penalties, fines on speeding tickets and vehicle registration fees will also not be discharged in a bankruptcy.

Also, fees that are considered a priority debt, meaning you owe the federal government or local state in payroll taxes, past tax debts from previous years, current tax liability, any fees or penalties cannot be discharged under a declaration of bankruptcy, therefore, you must make an effort to pay or deal with the IRS directly.

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.

 

It’s A New Year and Time for You to Get Your Finances In Order

It’s now 2018 and time to get a new start on your life. If your finances have suffered miserably in past years, it’s now a new year and time for you to get your finances in order. Many people have increasing amounts of debt from mortgages, car loans, student loans, medical bills, and credit card debt. Often it can become unmanageable and you can feel like there is nothing to look forward to.  There is help, there is a way to forgive some or all your debts.  A bankruptcy attorney can help facilitate filing for chapter 7 or chapter 13 bankruptcy.

Filing for the Right Chapter

Without the assistance of a local bankruptcy attorney many people end up confusing the two chapters of bankruptcy. To get back on track in life, you should have a solid understanding of what each one offers to your future, and your finances. It can be a serious condition to have to file for bankruptcy, and both can affect your future.  It’s important to file for the one that’s right for you, so you can get back to good finances in the future.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a certain liquidation bankruptcy that is made to rid you of unsecured debts. These may involve credit card debt or medical bills. To qualify for chapter 7 bankruptcy, you must currently have no income, or little disposable income. If you make too much money, you automatically must file for Chapter 13 instead.

Chapter 7 bankruptcy involves selling any property that you own so creditors can be paid back. If you have no assets, they won’t get anything. This type of Chapter 7 bankruptcy is best for low income or no-income people who have few or no assets.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is best for debtors who have a regular income. They can pay back at least some of their debts on a regular payment schedule. This is the path you’ll take if you don’t qualify for chapter 7. Even if you qualify for chapter 7, many debtors may decide to go the route of chapter 13. This is because there are additional benefits in 13 that 7 doesn’t have.

The benefits of chapter 13 bankruptcy include the ability to catch up on missed mortgage payments without losing your home. You may also be able to remove any unsecured junior liens from your house.  With chapter 13 bankruptcy, you’ll be able to keep your house or property. This will also include non-exempt assets. To qualify for chapter 13, you must repay your debt through a special repayment plan.

The amount you pay back will depend on your current income, expenses, and your type of debt. Therefore chapter 13 is commonly called a reorganization bankruptcy. It’s meant strictly for debtors who can afford to make monthly payments and get caught up on car payments, child support arrears, or alimony debts.

Know Your Rights

It’s important to be aware of your rights if you choose to file for chapter 7 or chapter 13 bankruptcy. Choose the route that’s most pertinent to you. Now you’ll be on your way to financial freedom.

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.

 

More Retirees Than Ever Are Filing for Bankruptcy — Here’s Why

Bankruptcy is a growing problem for older Americans — even those who are financially responsible.

Most people think bankruptcy is something they’ll never have to go through. You may think that because you’re diligent about spending less than you earn and avoiding excessive debt, you could never go bankrupt.

However, the number of people filing for bankruptcy is increasing, especially among seniors. People aged 55 and older account for about 20% of total bankruptcy filings — a number that’s doubled since 1994, according to a study from Debt.org. And even financially responsible people go bankrupt far more often than you might expect.

So why do so many people file for bankruptcy? There are many reasons, but the most common is outstanding medical bills.

Petition for bankruptcy forms

Image source: Getty Images.

When medical bills break the bank

Roughly a quarter of American households are struggling to pay their medical bills, according to the Kaiser Family Foundation revealed. And if you think health insurance protects people from crushing medical debt, consider that 10 million Americans with year-round health insurance coverage are struggling to pay their medical bills, according to NerdWallet Health.

Seniors aren’t immune to this struggle either. Many retirees (incorrectly) assume that Medicare is their ticket to low healthcare expenses, but even Medicare has its gaps. For example, Medicare doesn’t cover routine eye care, dental care, or hearing aids, and it also doesn’t cover long-term care — which can be ruinously expensive. In addition, you’re responsible for paying deductibles, copays, and coinsurance, and these costs add up quickly — in fact, the average 65-year-old couple retiring today can expect to pay upwards of $275,000 in medical bills during retirement.

Seniors are especially prone to high medical bills, as they’re more likely to develop expensive health conditions. Although older Americans age 65 and up only make up 12% of the population, they account for 34% of prescription drug usage and 35% of hospital stays, according to the Center for Disease Control and the Department of Health and Human Services — and a single trip to the hospital can cost tens of thousands of dollars.

What you can do to avoid bankruptcy

While there’s no surefire way to avoid health problems and the resulting medical bills, you can take a few steps to protect yourself from skyrocketing healthcare costs.

First, make sure you have an emergency fund that covers three to six months’ worth of expenses. Roughly a quarter of American adults have nothing at all saved in an emergency fund, according to a Bankrate.com survey, but what’s more worrisome is that 32% of soon-to-be retirees aged 53 to 62 have nothing set aside. An emergency fund can help you cover a major one-time expense without taking on a lot of debt or tapping your retirement savings, which can cause you to burn through your nest egg to fast and cost you dearly in future investment gains.

A health savings account is another option for covering medical bills. An HSA allows you to invest pre-tax dollars, let those savings grow free of capital gains and dividend taxes, and then withdraw them tax-free so long as they go toward qualified medical expenses — which can include everything from deductibles to contact lenses to long-term care.

Finally, simply being aware of what you may need to spend on medical expenses can help ensure you’re not blindsided when the bill arrives. Know what Medicare covers (and, more importantly, what it doesn’t), read up on your insurance plan so you know your deductible, copay, out-of-pocket limit, etc., and take a realistic look at your overall health to better plan for any medical expenses you may face down the road. While you can’t predict every health issue, if your family has a history of developing a certain ailment, it’s wise to budget treatment into your savings plan.

Although it’s not fun to think about, bankruptcy is a concern for a growing number of older Americans. As healthcare costs skyrocket, even those who have health insurance and are financially responsible are not immune to the rising medical bills. By being aware of the medical expenses you may face in retirement and preparing accordingly, though, you have a much better chance of avoiding bankruptcy during your golden years.

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Original Post: https://www.fool.com/retirement/2017/12/16/more-retirees-than-ever-are-filing-for-bankruptcy.aspx

Original Author: Katie Brockman

Original Date: Dec 16 2017

 

Complications of Bankruptcy When Paperwork Is Filed Improperly

Imagine that you are drowning in debt. You turn to the bankruptcy courts in hopes to petition them to release you from the liability of your debt, only later to be told there are legal discrepancies involving your paperwork.  The frustration that is felt can be overwhelming.  It is important to work with an attorney that specializes in bankruptcy to assist you in all aspects of filing.

Filing for bankruptcy with the assistance of a lawyer is the best way to ensure that you are following the proper steps.  However, it is important that you have some knowledge regarding the bankruptcy process.

Important Information When Filing For Chapter 7 or 13 Bankruptcy

  • Before a judge will agree to discharge your debt you will be required to get mandatory credit counseling. This usually will occur during the six month period prior to filing for bankruptcy.
  • In order to prove that you can pass the chapter 7 bankruptcy means test, you are required to file a wallet of forms in court. This includes a bankruptcy petition, a number of forms listing financial information, and an income and expense form.
  • The court will appoint a bankruptcy judge to handle your bankruptcy case thus including processing your paperwork and petitioning the court.
  • You will receive a notification from the court telling you when the meeting of creditors will take place. During this meeting you will be asked vital questions under oath, with your attorney present, about your personal finances and bankruptcy forms.
  • At some point during this process your eligibility to file for Chapter 7 bankruptcy will be confirmed or denied.
  • All of your nonexempt property will be reviewed and handled as will your debts that have been backed by collateral.
  • Before you get your bankruptcy discharged you will be required to take a financial management course. Upon approval you will receive your bankruptcy discharge.  This usually occurs three to six months after you first file for bankruptcy.

Why Using A Professional Is Best

Although the main reason for declaring bankruptcy is to give those in debt a chance to start their financial life with a clean slate, bankruptcy still remains on your credit report for 7 – 10 years. This process is lengthy and costly therefore the last thing you need is your paperwork to be filed incorrectly.  This is one of the many reasons that filing for bankruptcy is best done using an attorney specializing in bankruptcy law.

Providing accurate and truthful information to your bankruptcy lawyer about every aspect of your financial situation on the papers you file with the court is always recommended in order to avoid misfiled paperwork. The following are common mistakes that can cause serious complications when filing for bankruptcy:

  • Filing for bankruptcy without cause or filing the wrong type of bankruptcy, under the wrong chapter
  • Failure to complete and file the right forms
  • Failure to exempt your property
  • Transferring your assets before filing for bankruptcy
  • Failure to attend your meeting of creditors hearing

Fixing Mistakes

Filing an amendment to your bankruptcy petition and informing your bankruptcy attorney is one way to fix the mistakes on your petition. Whether the mistake was premeditated or innocent, failure to amend your petition and in a timely manner will raise suspicion about the accuracy of your petition, especially if the “mistake” ultimately allows you to keep more money or property than you are permitted to, and you may have unwittingly opened yourself up for investigation by The Federal Bureau of Investigation (FBI).  An improper disclosure of all relevant information to your bankruptcy attorney will also result in the denial of your discharge.  This is why it is so important to have proper representation throughout the bankruptcy process.

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.

Choosing A Bankruptcy Attorney

It’s important to remember that bankruptcy is always considered a negative thing to have within your credit history. It will have a serious impact on any kind of credit loans in the future. With that said, sometimes the process of filing for bankruptcy is the best course of action for the situation you are in.  It is possible that you can and will bounce back with the help from the right bankruptcy lawyer.

Knowledge On Your Options Is Key

Understanding the difference between the various options for filing for bankruptcy is going to be important as well. You need to have a clear idea of what you can expect to do when you are involved in this kind of situation. A good bankruptcy lawyer is going to give you proper advice on what kind of procedure is going to be the best for you.

Understanding the differences between chapter 7 and chapter 13 bankruptcies is essential for you to make a good decision. Once you are able to hire an efficient lawyer for this purpose, you should be able to understand the difference and the consequences of each of those different options.

Your Credit Score Should Recover

The process of maintaining a good credit history is important, but don’t expect filing for bankruptcy to be some kind of final nail on your credit score possibilities. This is something that many people end up doing and they are able to recover from it, so don’t see it as some kind of extreme measure that is impossible to bounce back from. Just see it as something that is going to help you when there are no other viable options for you.

If you want to know as much as possible about chapter 7 and chapter 13 bankruptcies are the best thing to do is to schedule an appointment with a competent lawyer. One that is going to be able to help you clear any doubts you might have. Once you do this, you are going to be able to get the most reliable outcome when you finally decide to file for bankruptcy in order to put your finances back in order.

There Is Nothing To Fear

This process is not the end of the world and you should not be ashamed of having to go through it. It happens to major corporations and to wealthy individuals all the time. It happens to highly successful people and even to those who always play it safe. The only thing you can do is be prepared if you need to do this at any point.

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.

The Best Bankruptcy Option For Your Situation

Have you ever been overwhelmed by debt? Have you ever considered if bankruptcy was the next step in your financial recovery? There are numerous advantages and disadvantages that come with filing for bankruptcy. We will look into common myths that surround bankruptcy and when it may be the best option for you.

Bankruptcy is an arrangement in federal law that allows individuals and businesses to get a reprieve from their debts and to get a fresh financial beginning. This system allows honest individuals who have fallen on hard times to get on with their lives without the harassment that comes from creditors.

There are two common categories within bankruptcy law that can be declared: chapter 7 bankruptcy and chapter 13 bankruptcy. In the most basic terms chapter 7 bankruptcy liquidates non-exempt assets and the proceeds are used to pay off creditors. This is a solid option when there is a large amount of unsecured debt to be covered by a small income. Chapter 13 bankruptcy helps individuals and businesses to reorganize and adjust their debts while using a repayment plan to cover the outstanding debt. This is a good option for those debtors that have an income and want to avoid foreclosure and catch up on outstanding bills.

A major advantage of filing for bankruptcy is that creditors are on notice to stop trying to collect outstanding debts from you. This means that they no longer can call you, send you letters, file lawsuits, garnish wages or seize your assets.

A major disadvantage in declaring bankruptcy is the devastation it wreaks on your credit score. Another issue that arises in bankruptcy is that certain non-exempt assets can be sold and debts from mortgages, student loans, taxes, alimony and child support cannot be discharged.

There are many myths in bankruptcy. One myth is that by just stating you want to file bankruptcy you have declared bankruptcy. This is not true. For bankruptcy to be legal you must file the right paperwork, go to credit counseling and pay the fees. It all reality it is best that a bankruptcy attorney is hired to facilitate the process to avoid legal complications from arising with improperly filed paperwork.

Another common myth is that you can go to jail for owing money. This is untrue. It is not against the law to owe money no matter how aggressive the debt collector is. One myth is that by just stating you want to file bankruptcy you have declared bankruptcy. This is not true. For bankruptcy to be legal you must file the right paperwork, go to credit counseling and pay the fees. It all reality it is best that a bankruptcy attorney is hired to facilitate the process to avoid legal complications from arising with improperly filed paperwork.

Another common myth is that you can go to jail for owing money. This is untrue. It is not against the law to owe money no matter how aggressive the debt collector is. Yes, creditors can sue you or take you to court but they cannot send you to jail.

Consider filing for bankruptcy if you are unable to meet your financial obligations. If you have been work for an extended period of time, delinquent on your taxes, nearing foreclosure on your home, having your wages garnished or pending a law suit on delinquent bills it may be time to meet with a bankruptcy attorney to further look into the benefit bankruptcy may have for your financial future.

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 athttp://www.bohikianlaw.com/ today.