Flint Bankruptcy and Families

Flint Bankruptcy involved people like you and me.
WHO FILES FOR BANKRUPTCY
The typical bankruptcy filer is a person already in fragile economic circumstances, often with large amounts of credit card debt, who then suddenly faces a spate of hard luck (loss of job, injury, divorce, uninsured medical expenses), resulting in mounting penalties and an unpayable amount of debt.
THE LAW GIVES YOU A FRESH START
Bankruptcy law is designed to help people just like this, who need assistance in making a clean break — a “fresh start” on life, rather than spend the rest of their lives being crushed by the burden of unpayable debt.
DO YOU HAVE DEBTS YOU CANNOT PAY
Even if you’re facing unpayable debt, you still may not need bankruptcy to protect your assets. Under the Exemption Laws of Michigan, you may already be “judgment-proof.” If so, you need not fear credit card companies simply because you owe them. Unsecured creditors (like credit card companies) can’t take your stuff if it’s exempt. If there are harassing phone calls, you can stop them with a simple phone call or letter. (However, interest and penalties on your debt will continue to accumulate and bankruptcy will put a stop to that.)
WHAT PROPERTY CAN YOU KEEP IN BANKRUPTCY?
But exemption laws do not protect property from all types of debts or all types of creditors. For example, exemption laws typically do not protect you against collection of child support or tax debts. And if you bought property and pledged it as collateral for the purchase-money loan (for example, a car loan or mortgage), the lender can take the property regardless of any exemption law.
CAN YOU GET RID OF ALL YOU DEBT?
Finally, there are some kinds of debts that bankruptcy simply cant get rid of. These are called “nondischargeable” debts. This generally includes child support, most student loans, and most tax debts.

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