The saying goes that there is nothing certain but death and taxes, and you know from experience how different types of taxes impact your life. Therefore, if you are considering bankruptcy, you can expect that a key topic will be taxed. In the same way that you might owe amounts for a credit card, you incur a debt on your record when you do not pay taxes. Another aspect of taxes to review when looking at your options under Chapter 7 or Chapter 13 is your yearly return. For many, your annual tax return is often followed by a refund that provides critical financial support when you are overwhelmed with debt.
If you are struggling with debt and unable to keep up with bills, each passing day brings anxiety and frustration with your financial situation. Every time you receive a bill, you see how your balance does not go lower after payments are absorbed by late fees and interest. You are hearing from creditors, who may be threatening lawsuits and engaging in other harassment. Bankruptcy might be a solution for discharging debt and resolving your financial difficulties, but many people shy away because they do not understand how the laws work. Therefore, it is critical to know the process for filing bankruptcy in Michigan if you are considering options for debt.
Bankruptcy comes in many forms, and two of the most common types of cases in Michigan are Chapter 7 and Chapter 13. Both involve a discharge of qualifying debt, alleviating the financial struggles that drag you down and cause you to miss opportunities. Another reason these proceedings are popular among debtors is that a person can file as an individual, and married couples may opt to file a joint petition. As such, Chapter 7 or Chapter 13 bankruptcy might be a suitable choice that benefits your entire family. When your case is complete, you emerge debt-free.
Deciding to file for bankruptcy requires serious consideration of all potential outcomes, your goals for resolving debt, impacts on your credit, and many other factors. When you are married and seeking debt relief through bankruptcy, your situation is slightly more complicated. You must still take these matters into account, but you must also think about your spouse’s interests. If you decide to go through bankruptcy together, you will both be impacted by all proceedings in the case.
Creditors will often engage in aggressive tactics to communicate with you regarding debt, including calling you at home and contacting you at work. However, there may come a time when a creditor takes legal action that could have a significant impact on your finances and future. By going through the proper process, a company can get an order from a Michigan court that takes part of your earnings to satisfy the debt you owe. The matter is termed wage garnishments in Detroit, and it is one of many options a creditor has to get paid.
Debt can get out of hand before you realize it, leaving you struggling to pay bills and fearing legal action from creditors. Despite efforts to make payments and cutting your budget, you may be unable to stay on top of your finances. Unfortunately, the more you fall behind, the more the fees add up. You may have already considered some options for getting out of debt without court, but these are not always the best fit for your situation. Bankruptcy in Michigan may be a wise solution, since it eliminates qualifying debt. One of the first questions for many filers is timing and how long it takes to get a discharge in Detroit.