Filing for personal bankruptcy can be a challenging decision to make, but for those dealing with insurmountable debt, it can be the best solution. Chapter 7 bankruptcy is a legal process that allows individuals to eliminate most or all of their unsecured debt, such as credit card bills and medical debt. However, there are criteria that must be met before filing for this chapter of bankruptcy. If you are considering filing for chapter 7 bankruptcy in Michigan, read on to learn about its benefits and effects on your job security.
Understanding Chapter 7 Bankruptcy
Chapter 7 bankruptcy is available to people whose incomes fall below a certain threshold. It is sometimes referred to as a “liquidation bankruptcy” because it involves the sale of non-exempt assets to repay creditors. However, in most cases, people who file for chapter 7 bankruptcy can retain their property and assets considered exempt under Michigan law. One of the main advantages of chapter 7 bankruptcy is that it provides a fresh start and allows individuals to eliminate their debt in a relatively short time period.
Benefits of Filing for Chapter 7 Bankruptcy
Filing for chapter 7 bankruptcy can provide several benefits. Once filed, creditors are prohibited from engaging in collection activities like phone calls, letters, and lawsuits. Additionally, any wage garnishments will be stopped, giving individuals their full paycheck. Chapter 7 bankruptcy can also help prevent foreclosure on a home and stop wage garnishments, meaning individuals can keep their property and wages. Furthermore, if the debtor has income below a certain level, they are exempt from filing fees and attorney fees.
Filing for Chapter 7 Bankruptcy and Your Job
It’s important to understand how filing for chapter 7 bankruptcy will affect jobs before taking any legal action. Your boss does not have access to any personal information or data regarding your financial situation unless it is given willingly to them. Employers must abide by the Fair Credit Reporting Act (FCRA), which states they cannot access your credit report without consent. Under federal law, it’s illegal for employers to discriminate against their employees because they filed for bankruptcy. While you may still have some concern, rest assured that the fallout from filing a successful bankruptcy claim is generally minimal.
Kaye Law Office PLLC Can Assist You with Your Bankruptcy Matters
If you are emerging from debt and considering filing for chapter 7 bankruptcy in Michigan, contact the Kaye Law Office PLLC. We are experts in the process of filing for bankruptcy and have experience helping hundreds of clients navigate the complex legal hurdles to gain financial stability. Our experienced attorneys will assist you in all necessary legal procedures, explain the bankruptcy process, clarify all applicable laws, and provide the advice and representation you need to overcome this challenging period.
Emerging from financial crisis can be difficult, but navigating this situation doesn’t have to be. By filing for chapter 7 bankruptcy in Michigan, this legal process can provide you with a fresh start, improve your financial situation, and help put you on a path towards financial stability. If you are considering bankruptcy, you must consult an experienced Chapter 7 bankruptcy attorney to guide you through the process effectively. At Kaye Law Office PLLC, we pride ourselves on being able to provide compassionate legal expertise in guiding clients through Chapter 7 proceedings. Contact us today for a consultation.
