The tough Michigan economy and soft real estate market have forced many Michigan residents to file for Chapter 7 bankruptcy relief. Under this bankruptcy law the court takes charge of a person’s financial wealth and their debts. A court-appointed trustee is responsible for determining the maximum about of wealth and property that can be used to pay back creditors. A person is generally permitted to keep some of the equity in their home, their clothing, some furniture, their car and the tools of their trade that they need to make a living.
A Bankruptcy Attorney Dearborn Heights can help a person navigate this complex process. The debtor can expect this process to take between four to six months and cost about $300 in court fees. An attorney can help the debtor sort through their assets and debts and help save their home and other exempt assets. The lawyer can also represent the debtor at the creditor hearing. After the bankruptcy filing is made, all of the creditors will be able to attend this hearing. It is the only time that the debtor will have to appear at the court house.
A person going through the bankruptcy process has to understand that the court-appointed trustee is there to get the most money for the creditors. While the trustee will ensure that all credit collections actions stop, this does not mean that the trustee is the debtor’s friend or representative. In order to ensure that no exempt property is sold, the debtor needs a Bankruptcy Attorney Dearborn Heights practitioner representing them. This ensures that someone who is knowledgeable about the law can argue with the trustee.
Some debt such as student loans, back taxes, and child support are not discharged through bankruptcy. Neither are house or car loans that are secured with property. A debtor may still need the advice and representation of a good lawyer to deal with these items. To remain solvent after bankruptcy, child support payments may have to be renegotiated. There is a limit to how many times a person can declare bankruptcy. So it is best to work with a lawyer to ensure all financial matters are settled.