Considering filing bankruptcy can be a daunting task. You might be leery of what filing can do for you. There are many benefits of filing for Chapter 7 bankruptcy; here are a few:
Credit Record
Filing for bankruptcy can stay on your record for seven years. However, the process to file only takes about three to six months. If you decide not to file Chapter 7, your debt payments, repossessions, or lawsuits may hurt your credit further. Within one to three years, you can also file for new credit cards. Even if they come with a higher interest, it will help build your credit back up.
Property Loss
The bankruptcy trustee will ensure that some luxury items are sold. These items are not exempt from repossession or sale. However, some states allow you to keep some of these items; they may allow you more coverage to secure the property you need. You will be able to keep your salary and wages as well as property you acquire after filing.
Alleviation of Financial Responsibility
You may be able to help alleviate child support or alimony payments if you are filing Chapter 7. Bankruptcy will help ensure your lenders will not seek aggressive collections against you. Additionally, if you do not owe money on types of things that are considered under bankruptcy, the courts may be able to help relieve you of a larger amount of debt. Contact Phoenix Law to speak with a bankruptcy attorney.
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With our offices centrally located in Livonia, we represent clients throughout Metro Detroit and beyond, including Westland, Garden City, Wayne, Redford, Belleville, Farmington Hills, Plymouth, Canton, Taylor, Romoulus, Northville, Commerce Township, Wixom, Dearborn, West Bloomfield and Detroit.
