Frequently Asked Questions About Bankruptcy

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Bankruptcy is an affordable and surprisingly easy way to eliminate all or most of your debt and have a fresh financial start. Bankruptcy is a right provided for individuals in Michigan under federal law. Filing bankruptcy legally stops creditor harassments and collection, until you have your finances under control.

Bankruptcy can make it possible for you to:

• Eliminate your legal obligation to pay most or all of your debts.
• Stop foreclosure on your home and allow you to have the chance to catch up on your payments.
• Prevent repossession of your car or other property.
• Force the creditor to return property, even after it has been taken.
• Stop wage garnishment, debt collection harassment and other creditor action to collect a debt.
• Restore or prevent utilities from being turned off.
• Give you a fresh financial start.

Most chapter 7 filers don't lose anything. In every bankruptcy case, there are certain laws that allow you to keep the property you own. Very rarely does anyone lose property if their bankruptcy is prepared correctly.  

There are no laws prohibiting you from buying homes, cars, trucks, equipment, household goods, etc. Once you get what is called your ‘discharge in bankruptcy’, many people, within 2 years after their bankruptcy case closes, have new cars, have bought houses, and have excellent credit. 

Filing bankruptcy may be the best thing you have ever done to your credit. Filing bankruptcy gets rid of debts you can't afford. Besides, having less debt to pay after a bankruptcy makes you look more attractive to banks, credit card companies and other lenders 

Cases are filed every day where a husband, or a wife, but not both, file bankruptcy. In many cases, where husband and wife both have a lot of debt, it makes sense and saves money for them to both file, but it is never a ‘requirement’ under the law. However, in many situations, there is no good reason at all for the second spouse to file.  In these situations, the spouse who needs the help can file and leave the other spouse completely out of it.