Is Chapter 7 Bankruptcy the Right Remedy for Your Debt?
Many people find themselves in debt due to forces completely beyond their control. You may have lost your job in the recession. You may have become sick or injured. You may have gone through a divorce. Or you debts may have just begun to spiral out of your control.
Chapter 7 bankruptcy may be the remedy you need. The law firm of Sheryl A. Shoebottom, PLLC, provides experienced, affordable services to help clients in Southfield, Michigan, and surrounding communities get rid of medical debts, credit card debts and more.
To schedule a free consultation and to start learning about your rights, call 888-343-9145 or contact the firm online today. Lawyer Sheryl A. Shoebottom provides personalized, client-focused service to help clients filing for personal bankruptcy.
How Chapter 7 "Liquidation" Bankruptcy Works
First, it's important to understand the difference between "secured" debt and "unsecured" debt. Secured debt is related to a physical object, like your mortgage or car payments. Those debts are considered to be secure because if you fail to pay them, your creditors can take back the property on which the debt is owed.
Unsecured debt includes medical bills and credit card debt, where there is no physical object for the creditor to repossess.
Under Chapter 7 bankruptcy, you can have all of your unsecured debts forgiven — wiped away entirely. In exchange, you agree to sell "non-exempt" assets and give the proceeds to your creditors. However, the vast majority of people who file for Chapter 7 bankruptcy do not have non-exempt assets and they end up selling nothing.
If you have a significant amount of non-exempt assets that would have to be liquidated in a Chapter 7 bankruptcy, you should consider filing for Chapter 13 bankruptcy instead.
Can I Keep My House and Car?
Your house and one automobile are considered "exempt" assets under Chapter 7 bankruptcy law. That means you do not have to sell them to repay creditors.
However, to keep your house and car, you will need to stay current on payments and catch up on any back payments you may have missed. Chapter 13 bankruptcy is often more suitable for saving a house or car. If you have been threatened with foreclosure or repossession, you should act quickly to hire an attorney to represent you.
Schedule a free initial consultation at the law office of Sheryl A. Shoebottom, PLLC. Call today at 888-343-9145 or contact the firm online.
"We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code."
