To file Chapter 7 Bankruptcy is where you wash your hands of all debt, and do not pay any of it back. This is different from a Chapter 13 Bankruptcy — where you make payments to your creditors. In a Chapter 7 Bankruptcy, you wipe away the debt.

One major concern many people considering Chapter 7 Bankruptcy have is whether or not they will be forced to give back any of their possessions if they do file. The answer is: It depends. If you're like many people who don't own much, have no real estate or any other major assets, chances are the harassing creditors won't be able to get their hands on your television, stereo, CD collection or — since you're viewing this on the web — computer. Bottom line: A good bankruptcy attorney can protect your possessions so you don't have to give anything back.

Find out if you qualify for Chapter 7 Bankruptcy. Click here

Q: Will I ever get credit again?
A: The bankruptcy will appear on your credit report for up to 10 years after you file. Other accurate negative reports on your credit must be removed after seven years. However, according to former clients, this is usually not as big a problem as most people think. Credit-lending agencies know you won't be able to file another bankruptcy for at least six years and, therefore, they don't have that risk to bear.

You will probably not be approved for as high of a credit limit as you once had, or be able to borrow a large sum of money, but getting some credit (such as a secured credit card) shouldn't be that difficult … and you can rebuild your credit over time. What you will likely face are higher interest rates, required higher down payments, more points, etc. Some people do have difficulty rebuilding their credit, but it is usually due to other factors besides bankruptcy such as their employment record, other past credit problems, etc.

In any event, the professionals at Michigan Attorney Lawyers can provide you with excellent materials and resources for helping you rebuild your credit.

Q: What about discrimination by my employer or the government?
A: After you file a bankruptcy you are protected against being fired from your job (for that reason), or the federal government not giving you a student loan, etc. This is all mandated in 11 USC 525.

Q: Why do I need a lawyer for a "simple" bankruptcy?
A: There is no such thing as a "simple" bankruptcy. To maximize the powerful bankruptcy discharge, only a skilled attorney can pick up on the unique factors your work life, cash flow, spending patterns, and financial history have.

Only a lawyer can give you legal advice. Only a lawyer can practice law. Only a lawyer can show up at court with you. Only a lawyer can fight a creditor if they contend any part of your case. Only a lawyer is answerable to the State Bar for ethics and competence.

You may save a few hundred dollars on a bankruptcy paralegal, but they cannot do the technical and specific things mentioned above that a licensed attorney is bound to. When you hire a paralegal, you do everything else for filing a bankruptcy ... alone. Because paralegals are not licensed and have no oversight, any mistake they make could end up costing you thousands of dollars — like missing equity in your car where you're then forced to sell it — and there is nothing you can do. They have your $300 payment and are moving on to the next customer. Don't take a chance and cut corners with a legal process as important as this one which impacts all of your financial affairs!

You'll want a skilled bankruptcy attorney to help you with this, particularly if you reside in Michigan. The Chapter 7 Michigan bankruptcy exemptions in Michigan are different than most states, and experienced Michigan bankruptcy lawyers can help protect most (if not all) of your assets.

Remember, the difference between Chapter 7 and Chapter 13 is that with a Chapter 7 you don't make payments on your debt. The debt in a Michigan Chapter 7 is gone. In a Chapter 13, the creditors get a portion of what you owe them. Discharging your debt where nothing goes to your creditors is the essence of a Michigan Chapter 7 bankruptcy.

Q: What will I need to file?
A: For the Chapter 7 Bankruptcy checklist Click Here.

Take a look at our SAMPLE Letters you will receive if your home goes into foreclosure: Click Here