Wayne County consumers looking for a fresh financial start have probably heard of Chapter 7 bankruptcy and may be wondering how it could help them. This blog post describes the basics of Chapter 7 and how it could help a consumer obtain debt relief.
It's not unusual for people in Wayne County to face various financial issues that make it necessary for them to consider options to get a fresh financial start. One such option is Chapter 13 bankruptcy. Filing for Chapter 13 must be fully understood before moving forward with it. Chapter 13 is useful for people who have a job and earn a living. The process lets eligible people come up with a plan to pay what they owe. A repayment plan will be proposed and paid in installments so the debt is cleared in three to five years.
This is a very uncertain financial time for many Michigan residents. As the economy continues to recover from the recent recession, many people are learning to live with less. However, many people are stuck in a cycle of borrowing to pay what they owe and struggling to make minimum payments. For many people this has led to creditor harassment and the threat of foreclosure.
We write frequently on our Wayne County bankruptcy law blog about the manageable payments that Chapter 13 offers. In fact, our last post briefly discussed Chapter 13 as a way to stop foreclosure on one's home and while making payments under Chapter 13 bankruptcy. Let's look a little closer at just how a payment plan is formulated for those who are wondering if filing for Chapter 13 is right for them.
When most Wayne County residents think about filing for bankruptcy, the images that come to mind are from the Chapter 7 liquidation process. They think of potentially losing some assets like a house or car that are used to secure debts, and they see their debts quickly swept away. Many are less familiar with what happens in Chapter 13 bankruptcy, even though it is an important option to consider.
Last week on our Wayne County bankruptcy law blog, as we were discussing the consumer medical debt crisis in this country, we mentioned how some turn to credit counseling or debt negotiation agencies for debt relief. There may, as we mentioned, be underlying concerns about the true interests or even the legitimacy of some such companies. This week, we want to highlight another situation in which Chapter 7 bankruptcy may be a better option for Wayne County residents who are seeking a fresh financial start.
With Independence Day 2014 now in the rear-view mirror, many Wayne County residents will find themselves reflecting on the possibility of their own independence -- from credit card debt, that is. The good news for these folks is that there are a number of options on the table. These range from some common-sense best practices in their day-to-day budgeting for smaller debts to more comprehensive solutions for overwhelming debt.
Wayne County residents struggling with debt are probably all too familiar with debt collectors and the types of practices they use to try to collect. They may not, however, be familiar with the types of limits the law places on what collectors can and cannot do. And Wayne County residents have some legal options of their own that can protect them from debt collectors.
In a community just west of Wayne County, a local furniture store is going to be closing its doors for the last time. The owner of Naked Furniture has filed for Chapter 7 bankruptcy and the store's inventory is being sold off in order to pay the owner's creditors and customers who paid for orders they never received.
Wayne County residents struggling with unmanageable debt may feel as if there is no clear answer to their problems. In researching their options, some find that the stigma often associated with bankruptcy drives them to consider other avenues of debt relief.