The weight of debt can feel heavy when you are dealing with frequent phone calls from creditors. Getting out from under your financial burden may be all you can think about as living in debt affects your mental well-being and strains your relationships with loved ones. In Michigan, filing for Chapter 7 bankruptcy could be a way to break free from debt and start over.
Freedom from unsecured debt
Unsecured debt is money that you owe without putting up collateral. The credit card company gave you an account based on your credit history, but you did not have to give them anything in return. These types of financial obligations come from several sources:
• Medical bills
• Credit card companies
• Utility companies
• Payday loans
Successfully filing for Chapter 7 bankruptcy means wiping away these unsecured debts. The court determines that you are unable to pay, and the calls from creditors will stop.
It is important to remember that secured debts like home loans and auto loans are unaffected by Chapter 7 bankruptcy. If you want to keep the property, you will need to reaffirm your commitment to paying off the loan.
Understanding the bankruptcy process
Declaring bankruptcy is a legal procedure. You will need to submit detailed financial information to the court to show your current income, predicted expenses and current assets. Once you file, it can take anywhere from three to six months for the bankruptcy to take effect.
Medical bills and credit card debt can be hard to escape. If you are struggling with an overwhelming load of financial obligations, Chapter 7 bankruptcy may be the solution to relieve your stress.
