The thought of filing Bankruptcy may seem like the end to your financial life. While in fact, the exact opposite may be true. The purpose of filing bankruptcy is to help you to come out from under your debt to create a new future. It’s not prospect that should be taken lightly, but many people may want to attempt it on their own. 

Bankruptcy is indeed, an effective method to gain a financial fresh start. A second chance to a solid financial future. When you successfully file bankruptcy, the debts that you have collected will be relieved to a great degree, but filing without extensive knowledge of the legal system may cause undo stress and is not advised for most people.

The main benefits of bankruptcy are:

• Automatic Stay: The automatic stay in bankruptcy stops creditors from debt collection. Creditor’s harassing phone calls stop, threatening mail ceases, repossessions are stopped, mortgage foreclosures are stopped and law suits as well.
• Exemptions: By law, certain exemptions are allowed which means that you may keep personal property outside of creditor’s claims. Types of exempt property are clothing, family heirlooms, furnishings etc. These are just a few examples and are subject to certain monetary or value limits.

Although bankruptcy records are public, it is still fairly easy to keep your bankruptcy private. You probably know people who have filed bankruptcy, they just didn’t tell you. When you file bankruptcy, it is not embarrassing or demeaning. In fact, these tough economic times have made filing bankruptcy more prominent than ever.

Each state has different rules and regulations, so if you are filing bankruptcy in Michigan, please contact Chimko for a helping hand.