If you have find yourself, as an individual, or a business in a dire financial situation in which you are unable to pay your outstanding debts, Bankruptcy may be an answer to your financial woes.
Bankruptcy is a legal proceeding that gives you or your business an opportunity to have your debts forgiven, and to give you a fresh start. Our team of lawyers at Downriver Lawyer will guide you through the step-by-step process you will need to take to clear you of your financial difficulties.
The initial process in bankruptcy is to file a petition with the court to have your assets measured against your debts and to liquidate your assets or create a payment plan to pay back your creditors. Once you are finished paying off your creditors, you are free and clear of any financial debts and back to financial security.
There are three main kinds of bankruptcy proceedings; Chapter 7 (liquidation of your assets), Chapter 11 (reorganization of your company or as an individual) and Chapter 13 (debt repayment with payments or a lowered debt covenant).
Chapter 7 bankruptcy cases are filed either by individuals such as “consumers” or by businesses. Chapter 7 bankruptcy petitions allow most of your debts to be wiped away and for you to start on a clean slate by using much of your assets to pay off your creditors. For example, if you have secured loan, such as a car loan that is conditioned upon guarantee of payment, you can relieve yourself of this debt by either allowing the car dealership to repossess your car, pay an amount equal to the value of the current value of the car, or even repay the loan under new terms if agreed upon.
If you find yourself in over your head in credit card debts, car debt, medical expenses, or with an unsecured loan, Chapter 7 Bankruptcy may be a way out for you. Let one of our experienced bankruptcy attorneys discuss your options with you and relieve you for your financial stress.
Chapter 11 bankruptcy typically targets small business owners who are having difficulty paying their debts. While this is a time-consuming and expensive option, this may serve as an ideal situation for those businesses that want to continue operating and simply need reorganizing to allow for debt repayment. Having put tremendous effort and investment into a business makes it difficult to walk away. Our lawyers at Downriver Lawyer understand what it takes to help small businesses survive and help our community prosper. That is why our lawyers have built a reputable name for themselves in keeping our small-business owners thriving in Michigan.
Finally, a Chapter 13 bankruptcy proceeding is made available to those who continue to earn sufficient wages to allow the payback of debts. This option allows you to demonstrate to the court and your debtors that you have a source of income that will allow you to repay your debt back within 3-5 years. This is perhaps the best way in which you can continue to financially thrive as an individual or a business without having to sacrifice too much. Upon sufficient demonstration of a secure income, you will be able to make repayment and create new payment plans for loans taken so that you do not have to have your property repossessed.
The amount you will have to pay back will be dependent on whether or not you are first eligible for Chapter 7 bankruptcy, the amount of money owed, and the amount of money being earned. This are of bankruptcy can be complicated and having a competent and experienced lawyer on your side will be invaluable.
We understand that financial hardship is a difficult topic to discuss with anyone and can be intimidating to speak with a lawyer. But our job is to put your best interest first and protect you and your assets against creditors. Downriver Lawyer attorneys pride themselves on being able to analyze case-by-case the equities and debts at hand and to explain each option carefully and thoroughly to our clients. We work with you to figure out the best and least-cost effective option so not to disrupt your life or our business any more than it has been disrupted.