If you are having hard financial times and you believe that filing chapter 7 bankruptcy is your only option, here are some of the top important facts that you need to know before you hire bankruptcy lawyers.
1. Did you know that 84 percent of Michigan bankruptcy filings for the year 2011 were Chapter 7 filings? There are a couple of other forms of personal bankruptcy that accounts for the rest of the 2011 filings.
2. The other 16 percent of Michigan bankruptcy filings for the year 2011 were Chapter 13 filings.
3. The national downward trend in bankruptcy filings does not, unfortunately, signal a trend that the economy is improving. The trend actually reflects the fact that debtors are beginning to realize that filing for bankruptcy, even if they hire a bankruptcy lawyer to help, does not magically fix all of their problems.
4. Chapter 13 is an option for debtors with unsecured debts, usually credit cards, of less than 1,081,400 dollars and secured debts, which is usually in the form of real estate or car loans, of less than 360,475 dollars.
5. With careful planning and financial management, it is possible to rebuild your credit after bankruptcy though it is far from easy. This is why bankruptcy is only to be used as a last resort.