When considering filing for personal bankruptcy, you need to consult with Southgate bankruptcy lawyers. While you do not need to hire lawyers for bankruptcy, Southgate bankruptcy lawyers definitely help. Southgate bankruptcy lawyers understand that bankruptcy is a federal process.
The constitution of the United States of America provides bankruptcy as a federal right for all Americans. It is done in federal courts. In the state of Michigan, you can file for bankruptcy in either the Eastern Michigan Bankruptcy District o the Western Michigan Bankruptcy District. Which depends on what part of the state you live in. However, state laws also apply to bankruptcy.
For example, the state of Michigan has its own list of bankruptcy exemptions particular to that state. There is also a list of federal bankruptcy exemptions. When filing for personal bankruptcy in the state of Michigan, you choose between using the state bankruptcy exemption list and the federal bankruptcy exemption list. If you choose the state bankruptcy exemption list, you can also use supplemental federal bankruptcy exemptions.
You will also need to decide whether to file for chapter 7 personal bankruptcy or chapter 13 personal bankruptcy. Chapter 7 involves a court-appointed trustee helping you to liquidate your nonexempt property in order to repay you debts. Chapter 13 reorganizes your debts into a three to five year repayment plan.
At any point during your bankruptcy, so long as you have not switched over once before and are eligible for both, you can switch from chapter 7 to chapter 13 or from chapter 13 to chapter 7. Chapter 7 stays on you credit report for 10 years while chapter 13 stays on your credit report for 7 years.
Which exemptions you use and which type of bankruptcy to file depends upon the particulars of your case. Southgate bankruptcy lawyers will know best how to proceed, what exemptions to use, and what type of bankruptcy to file for.