Detroit Bankruptcy Attorney

Questions About Bankruptcy

There are a number of questions that people commonly have when they are considering bankruptcy, including:

What is bankruptcy?

Bankruptcy is a legal process that allows a person to substantially reduce the amount of debt they possess, or eliminate it entirely. There are several types of bankruptcy to cater to individuals or businesses with specific financial needs.

What can it do?

Bankruptcy makes it possible for an individual to:

• Eliminate most or all of their debts
• Prevent foreclosure on their home or repossession of their vehicle or other secured property
• Stop wage garnishment
• Stop debt collection harassment or abuse
• Prevent termination of utility service, or restore services that have been lost
• Challenge the claims of creditors who may have committed fraud or are trying to collect more than is actually owed

What types of bankruptcy are available for consideration?

There are several types of bankruptcy available, with two of them being best suited for individuals. These are:

• Chapter 7 - This is known as "straight" bankruptcy or "liquidation," and involves a debtor liquidating (selling) property or assets in order to help pay creditors.
• Chapter 13 - This is known as "debt adjustment," and involves a debtor engaging in a payment plan to pay back creditors over time.

A Detroit bankruptcy attorney at The Cartwright Law Firm can assist you in making a decision regarding the correct type of bankruptcy for your financial situation.

Will I lose all of my property in a bankruptcy?

There are many types of property that are exempt from the bankruptcy process. In fact, a large number of Chapter 7 bankruptcies are "no asset" cases, meaning the debtor relinquishes no property in the process of bankruptcy. Examples of property exemptions include:

• Homestead (up to a certain dollar amount)
• Vehicles (up to a certain dollar amount, or if there is only one vehicle to serve the needs of an entire family)
• Household appliances
• Tools of the trade
• Cash or bank accounts (up to a certain dollar amount

Contact a Detroit bankruptcy lawyer who can provide you with answers to your bankruptcy related questions.