If you are struggling with the overwhelming burden of debt, you are probably a good candidate for bankruptcy protection. Many people live in fear of answering their telephone or checking their mailbox because debt collectors are harassing them to pay bills that they just cannot pay. Some creditors will use inexcusable tactics such as shame, fear or guilt in an attempt to force an individual to go to extremes to pay a bill. There is no need for you to live in fear or suffer from the stress associated with debt problems. Bankruptcy is a legal process that Congress enacted to aid individuals who are suffering from a financial crisis and do not have the ability to provide for their basic needs in addition to paying creditors.
Just as each person is different, the circumstances that led them to a bankruptcy attorney are different. There are many reasons that people file bankruptcy; however, no one reason is better than another. If you are suffering with debts that you are unable to pay, that is reason enough to seek bankruptcy relief. Below are some examples of why people file bankruptcy. If you are facing any one of these situations, you are likely a good candidate for bankruptcy.
Foreclosure or repossession – If you are behind in your mortgage or car payments, a bankruptcy case can save your home and your car. You need your home as a safe place for your family to live and you need your vehicle for transportation to and from work. Filing a bankruptcy stops foreclosure and repossession and allows you to pay the past due payments through a bankruptcy plan. You may be able to reduce the interest rate on your car loan and even pay less on the loan by valuing the loan based on the fair market value of the vehicle. An experienced bankruptcy attorney can advise you of your options and help you put together an affordable plan to keep your home and car.
Loss of a spouse – Losing a spouse is an emotional and painful event in one’s life. To have the stress of unpaid bills added to that loss is overwhelming. It is especially difficult if the spouse that dies is the one that earns the income for the family. Without his or her income, the family is without funds to pay bills and living expenses. A bankruptcy can wipe out debts to allow the remaining spouse to recover from the loss and find the means to continue to support themselves and their children.
Medical bills – One unexpected illness or tragic accident can result in thousands of dollars in unpaid medical bills. Even with the best health insurance coverage, you may be left with medical bills that you cannot afford to pay. This is especially true if you have been out of work during your recovery and you have had a decrease in income during this time. Bankruptcy can take care of medical bills so that you can fully recover from your illness or injury and begin to rebuild your finances.
Loss of a job or decreased income – If you have lost your job or your hours have been reduced, you probably are finding it difficult to make ends meet. Struggling to put food on the table while paying credit card bills is a definite sign that you are a good candidate for a bankruptcy filing. By filing a bankruptcy case, you can wipe out most, if not all, of your debts so that you can have a fresh start as you find new employment and begin to rebuild your life.
Student loans – In most cases, although there are some exceptions, student loans are not dischargeable in a bankruptcy. However, if you are struggling with student loans, filing a bankruptcy case may give you the relief you need from other debts so that you can afford to pay your student loan payments. An experienced Michigan bankruptcy attorney can advise you of your options with regard to student loans and if you qualify for a hardship discharge.
Tax debts – Tax debts are typically non-dischargeable; however, there are exceptions and your tax debt may be dischargeable in bankruptcy. A bankruptcy attorney can help you determine if the taxes you owe qualify for a discharge. If not, you may qualify for a Chapter 13 bankruptcy so that you can pay back the government over a 5-year plan at 0% interest (a much more affordable repayment plan than the installment plan offered by the Internal Revenue Service).
Domestic support obligations – Domestic Support Obligations (child support and alimony) are non-dischargeable in bankruptcy. However, bankruptcy can help in two ways. One, discharging other debts will allow you to have more income to pay your DSO payments. Two, if you are behind with your DSO payments, you may be eligible to file a Chapter 13 bankruptcy and pay the past due payments through the bankruptcy plan to avoid jail time. An experienced Michigan bankruptcy attorney can advise you of your options.
Failed business – It is heartbreaking to see a small business owner shut his doors because the economy has withered away his client base. However, it is tragic to see a business owner lose his home and his personal property because he is liable for the debts of the business. A personal bankruptcy case can discharge those debts and protect the owner’s personal property from business creditors. If you have lost your business, you should seek the advice of an experienced bankruptcy attorney like Gene F. Turnwald.
Attorney Gene F. Turnwald and the staff of The Law Office of Gene F. Turnwald are committed to helping each client find an affordable solution to his or her debt problems. With over two decades of bankruptcy experience, Attorney Turnwald knows how to help his clients protect their assets while ending creditor harassment by wiping out debts. If you are wondering if you are a good candidate for bankruptcy protection, contact our office at (517) 347-6700 for a free bankruptcy consultation. Attorney Turnwald will answer all of your bankruptcy questions, explain the bankruptcy process and advise you of your bankruptcy options. Together, we will find a solution to your financial problems so that you can begin to live a debt-free live again.