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Getting Your Financial Future in Order with Bankruptcy

Although we don’t intentionally do it, sometimes we make ill-advised financial moves that lead to bankruptcy. While filing for bankruptcy can provide a reprieve for those who are unable to repay their debts, there are consequences which may affect your future, for instance:

  • Bankruptcy may place some restrictions on your employment or running a business
  • It doesn’t necessarily release from all debts, and your trustee may sell all your assets
  • Your name may permanently appear on the National Personal Insolvency Index (NPII)
  • You must inform a credit provider of your bankruptcy when trying to obtain future credit
  • While bankruptcy lasts for three years and a day, your trustee can lodge an objection to extend the bankruptcy for up to eight years

Do not be discouraged because there is life after bankruptcy. First, a good bankruptcy attorney can help you in initializing a debt management plan and ensure that you attend credit counseling sessions where you can receive free advice on important steps to take in the future to help you abate the damaging impact of insolvency.

There is no denying that bankruptcy can be a daunting and very emotional decision, however, having a bankruptcy lawyer by your side, he or she can help you find various debt relief options that may be available to you and most importantly, he or she can stop creditors from harassing you. It is also your bankruptcy attorney’s duty to help you negotiate, review and sign any reaffirmation agreements on secured property that you want to keep. Your bankruptcy attorney may appear in further court required appearances on your behalf to satisfy the bankruptcy court’s administrative requirements. While that is happening, consider the following ways of getting your financial future in order after filing for bankruptcy:

  • Stick to a budget

If living beyond your means is what may have got you in a bankruptcy pickle, creating and sticking to a realistic budget will help you become extra vigilant about your finances and prevent you from incurring unnecessary debts.

  • Set up automatic bill payments

One of the single, most important things you can do to restore your finances and your credit is making it a priority to pay all your current bills on time and offset any existing bills that you may have accrued in the past.

  • Get a secured credit card

By obtaining a secured credit card, you start depositing a prearranged amount of money into a bank account, which becomes your credit limit. Charging small amounts each month and repaying your debts as agreed is yet another strategy to rebuild your credit rating after bankruptcy.

  • Save

Now that you’re free from most of the debt, it’s up to you to manage your money. Start by building an emergency fund. Also look for financial coaching offered by various financial advisers to help you in managing and keeping your finances in check.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Emerging Financially After declaring Bankruptcy

Can you believe that we are already into the month of April?  How are those New Year’s Eve resolutions working for you; how about those financial resolutions?  Are you rolling your eyes?  Financial hardships can add significant stress to personal hardships.  Perhaps you resolved to pull yourself out of the financial funk left by a recent divorce or foreclosure on your home.  There are many reasons that this might not have been possible for you, a job loss, a significant pay decrease, an extra mouth to feed, and so on can lead to a lack of money needed to pay off existing debts. There are times that personal bankruptcy is the only way out.

An element common to most survivors of going through a bankruptcy is the worry about moving forward and bouncing back financially.  Below you will find several ways to help you get started at getting back on your feet after a financial blow like declaring bankruptcy.

First and foremost, it is important to recognize that bankruptcy does often come with a terrible stigma.  For many of us it has been drilled into our heads that our financial obligations need to be paid under any circumstance.  The simple truth however is that even despite our best efforts there are times when we are unable to pay our debts.

It is crucial that once you have decided you have no other choice but to file for bankruptcy you realize you are in fact not alone.  In fact, the number of cases of bankruptcy has grown significantly over time; 13% of all U.S. citizens have considered it.  With that said, sulking and harboring feelings of failure and disappointment won’t do anything to help you begin to move forward.  Think of the experience as one that you have learned from.  Forgive yourself, meet with a professional in personal finance, and move on from your bankruptcy; the bankruptcy does not define who you are.

Start by creating a fund that is set aside specifically for use after the loss of a job.  This fund should consist of enough money to cover all your expenses, both essential and not, for at least 6 months.  It can take a significant amount of time to find a new job and the last thing that is needed during this situation is the financial stress of not being able to pay your bills.

As previously mentioned, seek the help of a professional who specializes in personal finance.  Learn to make smart financial investments and budget spending.  The creation of a detailed financial plan can help you stay on track towards a healthy financial future while continue to live comfortably.  Begin to slowly re-establish your credit.  Eventually, everyone ends up needing some type of credit.  Most of us will never be able to come up with the amount of money it takes to purchase a house.  Also, if we do have that type of cash it is more likely going to make you more investing than it is paying cash for a home.  A good credit score can occur even after declaring bankruptcy; it just takes time and patience.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Not All Debts Are Treated Equally When Filing For Bankruptcy

With a struggling economic climate, millions of people file for bankruptcy every year for varied reasons, most notably due to medical expenses, reduced income or job loss. According to US bankruptcy court statistics, personal bankruptcy has increased at an alarming rate and not just as a result of irresponsible spending, but because something like a divorce means taking on a partner’s debt if you had “regrettably” co-signed or opened joint accounts with them.

Filing For Bankruptcy

Unexpected catastrophes can also quickly drain savings that took years to accumulate including mountains of student loans, the rising costs of utility payments, inflation, foreclosure the list is endless. Bankruptcy laws are in place to give people whose finances have collapsed and need a second chance to start over. According to statistics from the American Bankruptcy Institute, nearly 95% of Chapter 7 bankruptcy cases decided in 2016 were discharged, meaning the individual was no longer legally required to pay the debt. But what about the other 4.5%?

If you are contemplating bankruptcy, you should consider discussing your options with an experienced bankruptcy attorney who works on liquidation bankruptcies where most of your debts are discharged or liquidated under bankruptcy law. A bankruptcy lawyer will also help you in compiling all your financial records, including debts, assets, income, and expenses.

The Length of Bankruptcy Process

Once you have filed for bankruptcy, the process usually takes six months or longer to complete, but the good thing is that during this time it triggers the automatic stay that prevents creditors from calling you, suing you, sending you letters, or even repossessing your property.

Items Not Discharged In Bankruptcy

When your petition is accepted, your case is assigned to a court trustee who then sets up a meeting with your creditors that you must attend. But not all petitions are accepted, for example; student loans are not discharged under a declaration of bankruptcy owing to the fact they are funded or guaranteed by the government and students are required to pay them off once they start working.

Another example of a non-dischargeable that can’t be in a Chapter 7 bankruptcy at are debts from a divorce because they are owed to a spouse but not as a domestic obligation. However, they can be included in a chapter 13 bankruptcy provided the debt becomes part of a payment plan, and the overdue payments will be continued and paid in full.

A debt incurred through fraudulent means, including one that was obtained to take advantage of the bankruptcy code, cannot be discharged. Unemployment benefits overpayments that you may be required to repay the excess, tax penalties, fines on speeding tickets and vehicle registration fees will also not be discharged in a bankruptcy.

Also, fees that are considered a priority debt, meaning you owe the federal government or local state in payroll taxes, past tax debts from previous years, current tax liability, any fees or penalties cannot be discharged under a declaration of bankruptcy, therefore, you must make an effort to pay or deal with the IRS directly.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

 

It’s A New Year and Time for You to Get Your Finances In Order

It’s now 2018 and time to get a new start on your life. If your finances have suffered miserably in past years, it’s now a new year and time for you to get your finances in order. Many people have increasing amounts of debt from mortgages, car loans, student loans, medical bills, and credit card debt. Often it can become unmanageable and you can feel like there is nothing to look forward to.  There is help, there is a way to forgive some or all your debts.  A bankruptcy attorney can help facilitate filing for chapter 7 or chapter 13 bankruptcy.

Filing for the Right Chapter

Without the assistance of a local bankruptcy attorney many people end up confusing the two chapters of bankruptcy. To get back on track in life, you should have a solid understanding of what each one offers to your future, and your finances. It can be a serious condition to have to file for bankruptcy, and both can affect your future.  It’s important to file for the one that’s right for you, so you can get back to good finances in the future.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a certain liquidation bankruptcy that is made to rid you of unsecured debts. These may involve credit card debt or medical bills. To qualify for chapter 7 bankruptcy, you must currently have no income, or little disposable income. If you make too much money, you automatically must file for Chapter 13 instead.

Chapter 7 bankruptcy involves selling any property that you own so creditors can be paid back. If you have no assets, they won’t get anything. This type of Chapter 7 bankruptcy is best for low income or no-income people who have few or no assets.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is best for debtors who have a regular income. They can pay back at least some of their debts on a regular payment schedule. This is the path you’ll take if you don’t qualify for chapter 7. Even if you qualify for chapter 7, many debtors may decide to go the route of chapter 13. This is because there are additional benefits in 13 that 7 doesn’t have.

The benefits of chapter 13 bankruptcy include the ability to catch up on missed mortgage payments without losing your home. You may also be able to remove any unsecured junior liens from your house.  With chapter 13 bankruptcy, you’ll be able to keep your house or property. This will also include non-exempt assets. To qualify for chapter 13, you must repay your debt through a special repayment plan.

The amount you pay back will depend on your current income, expenses, and your type of debt. Therefore chapter 13 is commonly called a reorganization bankruptcy. It’s meant strictly for debtors who can afford to make monthly payments and get caught up on car payments, child support arrears, or alimony debts.

Know Your Rights

It’s important to be aware of your rights if you choose to file for chapter 7 or chapter 13 bankruptcy. Choose the route that’s most pertinent to you. Now you’ll be on your way to financial freedom.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

 

Complications of Bankruptcy When Paperwork Is Filed Improperly

Imagine that you are drowning in debt. You turn to the bankruptcy courts in hopes to petition them to release you from the liability of your debt, only later to be told there are legal discrepancies involving your paperwork.  The frustration that is felt can be overwhelming.  It is important to work with an attorney that specializes in bankruptcy to assist you in all aspects of filing.

Filing for bankruptcy with the assistance of a lawyer is the best way to ensure that you are following the proper steps.  However, it is important that you have some knowledge regarding the bankruptcy process.

Important Information When Filing For Chapter 7 or 13 Bankruptcy

  • Before a judge will agree to discharge your debt you will be required to get mandatory credit counseling. This usually will occur during the six month period prior to filing for bankruptcy.
  • In order to prove that you can pass the chapter 7 bankruptcy means test, you are required to file a wallet of forms in court. This includes a bankruptcy petition, a number of forms listing financial information, and an income and expense form.
  • The court will appoint a bankruptcy judge to handle your bankruptcy case thus including processing your paperwork and petitioning the court.
  • You will receive a notification from the court telling you when the meeting of creditors will take place. During this meeting you will be asked vital questions under oath, with your attorney present, about your personal finances and bankruptcy forms.
  • At some point during this process your eligibility to file for Chapter 7 bankruptcy will be confirmed or denied.
  • All of your nonexempt property will be reviewed and handled as will your debts that have been backed by collateral.
  • Before you get your bankruptcy discharged you will be required to take a financial management course. Upon approval you will receive your bankruptcy discharge.  This usually occurs three to six months after you first file for bankruptcy.

Why Using A Professional Is Best

Although the main reason for declaring bankruptcy is to give those in debt a chance to start their financial life with a clean slate, bankruptcy still remains on your credit report for 7 – 10 years. This process is lengthy and costly therefore the last thing you need is your paperwork to be filed incorrectly.  This is one of the many reasons that filing for bankruptcy is best done using an attorney specializing in bankruptcy law.

Providing accurate and truthful information to your bankruptcy lawyer about every aspect of your financial situation on the papers you file with the court is always recommended in order to avoid misfiled paperwork. The following are common mistakes that can cause serious complications when filing for bankruptcy:

  • Filing for bankruptcy without cause or filing the wrong type of bankruptcy, under the wrong chapter
  • Failure to complete and file the right forms
  • Failure to exempt your property
  • Transferring your assets before filing for bankruptcy
  • Failure to attend your meeting of creditors hearing

Fixing Mistakes

Filing an amendment to your bankruptcy petition and informing your bankruptcy attorney is one way to fix the mistakes on your petition. Whether the mistake was premeditated or innocent, failure to amend your petition and in a timely manner will raise suspicion about the accuracy of your petition, especially if the “mistake” ultimately allows you to keep more money or property than you are permitted to, and you may have unwittingly opened yourself up for investigation by The Federal Bureau of Investigation (FBI).  An improper disclosure of all relevant information to your bankruptcy attorney will also result in the denial of your discharge.  This is why it is so important to have proper representation throughout the bankruptcy process.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Choosing A Bankruptcy Attorney

It’s important to remember that bankruptcy is always considered a negative thing to have within your credit history. It will have a serious impact on any kind of credit loans in the future. With that said, sometimes the process of filing for bankruptcy is the best course of action for the situation you are in.  It is possible that you can and will bounce back with the help from the right bankruptcy lawyer.

Knowledge On Your Options Is Key

Understanding the difference between the various options for filing for bankruptcy is going to be important as well. You need to have a clear idea of what you can expect to do when you are involved in this kind of situation. A good bankruptcy lawyer is going to give you proper advice on what kind of procedure is going to be the best for you.

Understanding the differences between chapter 7 and chapter 13 bankruptcies is essential for you to make a good decision. Once you are able to hire an efficient lawyer for this purpose, you should be able to understand the difference and the consequences of each of those different options.

Your Credit Score Should Recover

The process of maintaining a good credit history is important, but don’t expect filing for bankruptcy to be some kind of final nail on your credit score possibilities. This is something that many people end up doing and they are able to recover from it, so don’t see it as some kind of extreme measure that is impossible to bounce back from. Just see it as something that is going to help you when there are no other viable options for you.

If you want to know as much as possible about chapter 7 and chapter 13 bankruptcies are the best thing to do is to schedule an appointment with a competent lawyer. One that is going to be able to help you clear any doubts you might have. Once you do this, you are going to be able to get the most reliable outcome when you finally decide to file for bankruptcy in order to put your finances back in order.

There Is Nothing To Fear

This process is not the end of the world and you should not be ashamed of having to go through it. It happens to major corporations and to wealthy individuals all the time. It happens to highly successful people and even to those who always play it safe. The only thing you can do is be prepared if you need to do this at any point.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

Call In the Professionals

Hiring a professional, local bankruptcy attorney for your Chapter 7 bankruptcy comes with a lot of benefits.  An expert attorney will help you in discharging all eligible debts, while still keeping your household goods, home, and if possible your car. Although alimony, child support, and federal income taxes are not qualified for elimination, a good local bankruptcy attorney will assist you in dealing with financial situations you are unable to control yourself including large medical bills or being laid off, before you get overwhelmed with serious debt.

Why hire a Chapter 7 bankruptcy attorney

If you are indebt more than what you can actually afford to repay over time, then you need to hire a Chapter 7 local bankruptcy attorney. You will greatly benefit from their services. In a Chapter 7 bankruptcy, an individual that owes the money is typically relieved of financial obligations and then given a new financial start. However, in some cases, a Chapter 7 bankruptcy may as well require you to sell some of your assets in order to cover for your debts. If you are a creditor that often receive very little money from these settlements, you can also be affected by Chapter 7 bankruptcy. This is due to the fact that new bankruptcy laws are continually written and existing laws modified, but whatever the situation may be, a good Chapter 7 attorney can help creditors and debtors cope with bankruptcy issues and decisions.

Bankruptcy can be a time consuming and intimidating process even if you have a simple Chapter 7 case. You will need to perfectly and accurately fill out many forms, attend hearings and research the law. However, if you are not finding these bankruptcy processes comfortable, then the best thing to do is to consider hiring an attorney who will attend the hearings with you, prepare the forms, and also guide you throughout the process.

In other words, some Chapter 7 cases are more complicated than others. You will definitely have a very complicated Chapter 7 if you have income above the median level of your state, own a business, have creditors who can make claims against you based on fraud, or have a significant amount of assets. If you find yourself involved in any of these situations, then you are at the risk of having your case dismissed, your assets being sold or taken, or even have to face a lawsuit in your bankruptcy to determine that some debts should not be discharged. In situations like these, it is advisable to hire a professional local bankruptcy attorney to handle your Chapter 7 bankruptcy.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

 

Bankruptcy in Michigan

There are two main types of bankruptcy discharged in Michigan: chapter 7 bankruptcy and chapter 13 bankruptcy.  The act of going bankrupt refers to a legal proceeding where someone that is unable to pay their bills.  Bankruptcy is a fresh financial start that is provided by our federal government.

Unpaid bills and debt can accumulate which can lead to the threat of property repossession and/or banishment of wages thus, forcing many people to look into declaring personal bankruptcy.  This may seem like a workable approach but it is important to understand the two types of bankruptcy to have a basic understanding of how the process works.

With the help of a local bankruptcy attorney, Michigan residents who end up overwhelmed with debt can seek relief under the federal government’s bankruptcy laws.  Below we will discuss in depth the two most common types of personal bankruptcy in Michigan: Chapter 7 and Chapter 13.

  1. Chapter 7 Bankruptcy

Many people are forced to file for chapter 7 bankruptcies, known as liquidation, each and every year.  In chapter 7 bankruptcy, certain assets are handed over to an appointed trustee and are liquidated as payment for outstanding debts.

In chapter 7 bankruptcy it is right for debtors to keep some personal possessions or property. All other debts left are often cleared except for they cannot be discharged. After the sales of assets, creditors will receive what is available from the proceeds. Upon the discharge of a debtor, a creditor cannot make future collection attempts.

  1. Chapter 13 Bankruptcy

This involves debt adjustment and not liquidation assets – debtors are often permitted to keep almost all properties they own.  Creditors, trustee and the court must approve the reasonable repayment plan of which the debtor must give. Any reimbursement plan needs to enable creditors to get installments that are equal to what they could have gotten amid the Chapter 7 bankruptcy.

Upon acceptance of a plan, the trustee now collects payments from the debtor – this will make sure that available funds are given to creditors. The chapter 13 bankruptcy relies on the debtor having a stable source of income, plus the capacity to clear off debt balances. Repayment plans generally runs for 3 to 5 years – creditors are not allowed to take any form of collection action against debtors during this period.

Some tips to note before considering filing for bankruptcy

Here are few facts you must consider before taking up a bankruptcy file:

– Bankruptcy allows debtors to discharge all or part of their debt. In chapter 13 bankruptcy for instance, debtors repay all or part of their debt based on a reasonable payment plan.

– Under a bankruptcy, a debtor proposes a 3-5 years repayment plan to the creditors offering to repay all or part of the debts from the debtor’s future income.

– For anyone to file for bankruptcy, he/she must have a regular source of income, including other disposable income – this is crucial when applying for a payment plan.

– A personal bankruptcy is generally employed by debtors who wish to keep secured belongings or assets, like a home or car, when they have much more collateral in secured resources than they can protect with the Michigan personal bankruptcy exemptions.

If you live in Michigan, you can always get bankruptcy guide and help from a competent local bankruptcy lawyer which will make the process easier for you.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.

 

Tips to Follow When Hiring a Lawyer That Specializes in Bankruptcy

Bankruptcy is a legal method that allows an individual to declare their in ability to pay their debt.  A person usually opts to declare bankruptcy when all other debt relief options have not worked.  Bankruptcy is considered to be the last resort for an individual who has no other possibilities left to pay off debts that are owed.

Bankruptcy is not a form of punishment for not being able to pay your bills.  It can be a time where individuals feel embarrassed as they are berated by “predator creditors” that call daily and demand payment.  Let’s be honest, if individuals had the money to cover their bills they would but if you don’t have it you can’t just make it appear because it is due.

What people imagine bankruptcy to be is actually quite different than what it actually is.  Most people that find they seek bankruptcy advice from an attorney have tried everything before they have gotten to this point.  Many times individuals are seeking bankruptcy relief because of an unexpected job loss or something else beyond their control; life’s circumstances over personal behavior are to blame for a high percentage of all bankruptcy’s that are filed.

The benefit of filing bankruptcy is that it allows you a fresh start.  The best way to clear the field is to work with a bankruptcy attorney and the best way to start again is to meet with a financial advisor.  We do not treat ourselves when we are sick so don’t treat your damaged or broken finances alone either.

Although bankruptcy allows individuals to have a fresh start and begin again financially it is easier said than done.  Changes in bankruptcy laws have made it harder and more complicated than ever to file.  It is incredibly important to work with an attorney to ensure that paperwork is filed correctly and that nothing is missed.  Consult with a bankruptcy attorney, a professional will ensure that that the ins and outs of bankruptcy rules are followed.

Filing for bankruptcy is a onetime life event.  It allows you to clean out your financial closet however it is crucial that you do not go it alone.  New bankruptcy laws were enacted in 2005 that made it much more complicated for debtors to file bankruptcy.  With careful planning and a good lawyer it can be done.  A good attorney and careful planning will get you the results that you desire.  A good bankruptcy lawyer knows the ins and outs of the new laws and will get you the results that you deserve.  When looking for a bankruptcy attorney and before you hire one be sure that they have the capacity and expertise to get you what you need.

Bohikian Law Group specializes in chapter 7 and chapter 13 bankruptcies in Michigan. Contact us today to find a bankruptcy attorney that will help you in debt relief at http://www.bohikianlaw.com/ today.