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Understand Chapter 7

Chapter 7 Bankruptcy Lawyers in Detroit

Serving Wayne, Oakland, and Macomb Counties

Is Chapter 7 Right for You?

Did you know that there is a legal process that allows individuals to eliminate tens of thousands of dollars of debt within six months? This process is called Chapter 7 bankruptcy and is the most common type of consumer bankruptcy filed in the United States.

There are various advantages to filing for Chapter 7. It gives you a fresh financial start by paying off most unsecured debts, such as credit card and medical expenses. It has the ability to put an end to creditor harassment, wage garnishment, and lawsuits. You can also keep some exempt property. Additionally, the entire process is rather quick, taking several months to deliver you immediate financial relief.

Chapter 7 bankruptcy can eliminate various types of unsecured debt, including the following:

  • Credit card debt
  • Medical bills
  • Past-due rent
  • Personal Loans
  • Some tax debts
  • Utility bills

Some people hear “bankruptcy” and immediately imagine losing everything they own in a forced sale. They also imagine a permanently ruined credit score and even a publication that tells all their friends, family, and neighbors that they went bankrupt. These are just a few of the harmful myths that prevent people from filing bankruptcy.

Our Chapter 7 Bankruptcy Services

At WBK Bankruptcy, our attorneys work every day to dispel these myths and help our clients understand the truth about this powerful debt-relief option. Our legal team seeks to educate consumers about bankruptcy in Wayne, Oakland, Macomb, Livingston, and Washtenaw counties. If you are struggling to make ends meet because of staggering levels of debt, let us evaluate your case and determine whether Chapter 7 may provide the financial freedom you need and deserve.

Chapter 7 vs Chapter 13 Bankruptcy

Chapter 7 and Chapter 13 bankruptcy differ from each other in that Chapter 7 allows debtors to discharge unsecured debt like loans, credit card debt, and medical bills. In contrast, Chapter 13 allows you to catch up on secured debts like vehicles or homes to prevent foreclosure or repossession.

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When Should You File for Chapter 7 Bankruptcy

Filing for Chapter 7 is frequently a critical decision for people seeking debt relief, and several factors should be considered before filing. If you have limited income and few assets and are struggling with unmanageable debts, a Chapter 7 bankruptcy may be appropriate. When debts, such as credit card balances, medical bills, or personal loans, have become insurmountable, Chapter 7 is a good option.

Generally, it is advisable to file for Chapter 7 bankruptcy when you’re unable to pay off your debts and meet your basic living expenses. However, the timing should also consider any potential legal complications, like recent large purchases or cash advances that may be scrutinized during the bankruptcy process.

While it is tempting to wait until your financial situation becomes dire, understanding bankruptcy laws and the intricacies of Chapter 7 can help you make an informed decision about when to file. Consulting a qualified Chapter 7 bankruptcy lawyer in Detroit is a crucial step in this process, as they can provide personalized guidance tailored to your circumstances.

Common reasons you might want to wait to file for bankruptcy:

  • If you transferred property to a relative or friend within the last year
  • If you have paid back a family member or friend recently
  • If you are planning to file a lawsuit — you may want to wait until the case has been settled
  • If you owe rent to your landlord and you do not have plans to move — try to catch up on the payments
  • If you are late on car payments and want to keep the car — try to catch up on payments as well
  • If you know that your financial situation will get worse, you may wait a little more before filing — you can only file for Chapter 7 once every eight years, so you may want to wait before getting into more debt.

For experienced advice on your particular situation, speak with a skilled Chapter 7 attorney in Detroit at WBK Bankruptcy, powered by Wolfson Bolton Kochis PLLC.

The Chapter 7 Process

Seek the Help You Need from an Experienced Firm

We understand that filing for bankruptcy is a choice that should not be taken lightly. At WBK Bankruptcy, our legal team is happy to provide you with everything you need to know to make an informed choice about your financial future. We can help you determine whether bankruptcy is right for you and walk you through the filing process. We can also help you seek solutions outside of bankruptcy if you decide that it isn’t for you. Don’t hesitate to reach out to learn more during a free consultation with our Metro Detroit Chapter 7 bankruptcy attorney!

Learn everything you need to know from our Metro Detroit Chapter 7 bankruptcy lawyer. Call (248) 247-7070 or contact us online to get started today!

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