The basics of filing bankruptcy are not difficult to understand. You only need to recognize that two types of bankruptcy exist to help the typical debtor. The first bankruptcy is the typical chapter 7 bankruptcy where all of your debts are erased. The other bankruptcy is Chapter 13 which means you will be paying back some of your creditors. The best type of bankruptcy would be a chapter 7 bankruptcy only if you don’t care about the trustee selling your home or getting rid of your car. Most people become scared when they hear about losing their home. However, it is not typical to lose the home because it can be reaffirmed and you can continue to make payments on the home. The bankruptcy court also allows the person filing so much money for exemptions towards vehicles and cars. Therefore, many times people can exempt the equity in their home and their vehicle which prevents them from having to surrender any property when filing a chapter 7 bankruptcy.
Visiting several Michigan Bankruptcy Attorneys will help you decide if saving your home and vehicle is an option. However, if you meet certain requirements you can also keep your property by filing a chapter 13 bankruptcy and then you begin by working with your attorney and court trustee to decide how much you will pay back and how many years your plan will be.
If you are placed in a Chapter 13 bankruptcy you will have been placed in a bankruptcy where very few people succeed and in a plan where the bankruptcy plan can last anywhere from three to five years and can range in several different percentages of payback to the creditor during the bankruptcy plan.
To be successful in a chapter 13 bankruptcy you and the attorney should not just be concerned only with how to erase credit card debt but both parties should be more concerned with detailing the specific bankruptcy plan that the debtor can abide to each month through out the bankruptcy process whether it is a simple chapter 7 bankruptcy or a Chapter 13 bankruptcy with 3-5 years of paying back creditors under bankruptcy protection.
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