Thinking About Filing Bankruptcy?
Many of our clients have never needed a lawyer or never thought they would find themselves in a financial jam like this. We answer some of the common questions about bankruptcy so you can be better informed about your options.
What exactly is bankruptcy?
Bankruptcy is a federal law that gives a fresh start to honest debtors who are in over their heads. There are two main types of bankruptcy for individuals and couples: Chapter 7 bankruptcy which erases certain debts completely and Chapter 13 bankruptcy which spreads out your debt repayment over several years. The bankruptcy court decides which of your creditors get paid.
How do I know if I should file for bankruptcy?
If you are in danger of losing your home or your car, bankruptcy may prevent that. If you are tapping into your retirement savings to pay debts or creditors are garnishing your paychecks, it’s time to consider bankruptcy. If you are falling farther and farther into debt each month, bankruptcy may be the only way out. An attorney who focuses on bankruptcy law can help you decide if bankruptcy is the answer or if you can benefit from alternatives to bankruptcy such as loan modification or short sale.
How can I get creditors to stop calling me?
Creditor harassment is the last straw for many people. Filing for bankruptcy triggers an “automatic stay.” Creditors can no longer call you or bother your family members. They can’t threaten you or turn you over to a collection agency. They can’t garnish your wages or repossess your car once you are under the protection of the bankruptcy court.
Are back taxes discharged in bankruptcy?
Some taxes can be discharged in bankruptcy, but you may still have to pay back other taxes on a payment plan. The rule of thumb is that IRS tax debts dating back three or more years might be eligible. An attorney can determine which taxes (if any) can be included in your bankruptcy.
Can people with student loan debt file for bankruptcy?
It is very difficult to discharge college loans in bankruptcy unless you can demonstrate “undue hardship.” However, if you also have medical bills, credit card balances or other unsecured debts, discharging those debts in bankruptcy may make your student loans more affordable.
We Are Here To Help You Through This
Roose Law PLC represents ordinary people in eastern Michigan and statewide who urgently need debt relief. Adam Roose has 15 years of experience and provides a free consultation to address your concerns and assess your situation. Call 248-331-1200 or contact us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.