No one likes to admit that they can no longer deal with their finances. Even so, the day may come when the only smart thing to do is contact a bankruptcy attorney in Monroe, MI and set up an appointment. During that meeting, the client will learn a great deal about bankruptcy and what it can do to help them get a fresh start. Here are some examples of what the client will learn.
Bankruptcy Isn’t What It Used to Be
Many people are not aware of how bankruptcy laws have changed in the last couple of decades. Debt that could at one time be discharged in a chapter 7 action is no longer eligible or is only allowed under a narrow range of circumstances. Even the process of filing for a chapter 13 plan and repaying the debt under the protection of the court has changed in a number of ways. The bankruptcy attorney in Monroe, MI can help the client understand how the laws operate today before moving on to settle on a solution.
Understanding the Meaning of Priority Debt
In bankruptcy cases, priority debt refers to obligations that the court will give special attention. This includes debts like past due taxes, outstanding child support, and student loans. Since debt of this type is rarely eligible discharge, a debtor with mainly priority obligations will likely find that filing a chapter 13 action is the best approach. This will stop collection calls and make it possible to repay the debt over the next three to five years. If the client does have any unsecured debts that are not classed as a priority, a portion of those will be paid only after the priority debt is settled in full.
While bankruptcy laws have changed, that doesn’t mean filing is not the right choice for many people. Contact the team at Bruce & Associates today and arrange for a consultation. Make sure to bring along documentation that relates to all sources of income, the current status of all debts, and information about any assets the debtor happens to own. Doing so could be the first step in getting back on an even financial keel and being able to plan for a more secure future.
