Bankruptcy often has a negative connotation, but this is in large part because of misconceptions that have escalated over time. Declaring bankruptcy in Michigan simply gives you a chance to eliminate debts and repay creditors under the protection of certain stipulations set in federal bankruptcy court.
Declaring bankruptcy takes more than just a sporadic decision to relinquish your assets because of financial strain. Instead, the process often requires proper planning, evaluation and well-informed legal consultations.
When declaring bankruptcy in Michigan, you have 2 options: Chapter 7 bankruptcy (liquidation) and Chapter 13 bankruptcy (reorganization). Certain steps must be taken (as well as avoided) for either option. Such steps are commonly known as the dos and don'ts of declaring bankruptcy.
Before Declaring Bankruptcy in Michigan
It is important that you speak with an experienced Michigan bankruptcy attorney before filing for Chapter 7 or 13 bankruptcy so that you can get a better idea of which option may be the best fit for your financial situation. In addition, a Michigan bankruptcy attorney can advise you on some of the dos and don'ts of declaring bankruptcy in Michigan.
The following are some "dos" to consider before declaring bankruptcy in Michigan:
The following are some "don'ts" to consider before declaring bankruptcy in Michigan:
Decisions you make before declaring bankruptcy in Michigan can affect your financial standing and the eventual outcome of your bankruptcy case. Talk with a Michigan bankruptcy attorney about some of the preparations you should make before declaring bankruptcy in Michigan.