Why should you file Chapter 13 Bankruptcy in
You can actually file for Chapter 13 even before the 4 year limit, but in this case you’ll have to pay back 100% of your debt over time. While this might not sound like an appealing option, it may be a useful approach for people attempting to save their home from foreclosure.
When Should You File
Whether to file bankruptcy is a personal decision that shouldn’t be taken lightly. Should you decide to file bankruptcy you should be aware of the effects. Here are some things to consider as you evaluate your financial situation. You might file bankruptcy if:
- You don’t have many assets or savings.
- Your wages are being garnished.
- You’ve had repossession.
- One or more of your debt payments are more than 30 days past due.
Chapter 13 bankruptcy allows you to keep your assets in exchange for setting up a repayment plan. An individual can file once every two years and the bankruptcy will appear on a credit report for 10 years.
Filing for bankruptcy will make loans more costly and may make unsecured loans impossible to obtain. Qualified retirement plan assets, such as 401(k)s, are protected under all bankruptcy filings, and assets of up to $1 million in IRAs are also protected.
In the end if you want to keep most all of your stuff you will file a chapter 13 Bankrutpcy. However, you work starts before you file by finding the right Michigan Bankruptcy Attorney. Fortunately for me when I filed Bankruptcy in Lansing I had done my research and met with several attorneys before I decided which one I would use. It was a pain but my attorney made me look at all aspects of bankruptcy before filing and this included an analysis of filing Chapter 13.
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