The answer to this question lies in the answer to a broader question: “What is the ultimate aim of filing for bankruptcy in Detroit?”
If you are faced with a truly dire situation, an opportunity for a debtor to emerge out of a financial crisis and start fresh, then filing Chapter 7 of the Bankruptcy Code could be a means to the end, and a way to achieve it quickly. Under Chapter 7 of the Bankruptcy Code all non-exempt property of the debtor is sold and the proceeds of the same are distributed to the creditors. In most cases where Chapter 7 is brought into force the debtor has no assets to lose, therefore the fresh start takes place relatively faster.
So how does Chapter 7 in Detroit work?
A trustee is appointed to the case. They will collect all non-exempt property, sells the assets and distributes proceeds from this sale to appropriate creditors. Chapter 7 is different from other bankruptcy filings because the debtor needs not make a payment to the trustee.
Even though in some cases this would mean that you will lose all your assets, this need not always be the case. It is strongly recommended that if you are apprehensive and feel you will lose your assets, discuss the matter with your bankruptcy lawyer of Detroit.
Under Chapter 7 Bankruptcy, the debtor receives a discharge on all dischargeable debts. There are 19 general classes of debt that are discharged under Chapter 7 Bankruptcy.
An added advantage with Chapter 7 bankruptcy is that by signing a reaffirmation agreement a debtor can continue to pay for a car loan or a mortgage on their home. This agreement is in place because as per the US Government Bankruptcy Code a debtor could be allowed to retain some or all of his property.
How do I file for Chapter 7 in Detroit?
Once you get down to filing for bankruptcy, you’ll know exactly what we mean by repeating that our Detroit lawyers know best! Filing for bankruptcy is the fulfillment of a clearly laid of set of rules and procedures, but it is as complex as it seems simple. You need to be sure about just one thing: “Do you need to file for bankruptcy?” Once you’ve filled our evaluation form and got the answer to that basic question, in discussion with our attorneys give all details of your case. Be sure the information you provide is complete and correct. Once these preliminary things are taken care of, leave it to the Detroit lawyers to take your case to its logical conclusion. Also, if you have a question for our expert lawyers, please fill out the form on our home page.