Chapter 7 Bankruptcy

If you are looking for a bankruptcy accountant to aid in the reorganization of your finances, look no further than Merritt Financial Services.  With our help, you can have the clean slate and fresh start that you need to establish growth in your finances, stability, and debt freedom.

Located in Detroit servicing Oak Park, Southfield and Detroit

What is bankruptcy

The official definition of bankruptcy, according to Investopedia.com, is:

“A legal proceeding involving a person or business that is unable to repay their outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt.”

Basically, you file bankruptcy when you can’t afford to pay your debts. You have to share your financial information with the bankruptcy court and, depending on the type of bankruptcy you file, you will no longer be responsible for paying off your debts, or your repayment obligations will be restructured to become affordable.

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Chapter 7 vs. Chapter 13 Bankruptcy

There are two ways to file for bankruptcy as an individual – chapter 7 and chapter 13. The difference is that a chapter 7 bankruptcy is called liquidation bankruptcy as its goal is to liquidate your assets to repay your creditors. However, much of your assets such as your house, automobile, furniture, and personal items can be excluded in a chapter 7 bankruptcy that means you get to keep your property and eliminate all of your unsecured debt within 4-6 months.

A chapter 13 bankruptcy is different in that it’s called a reorganization bankruptcy. The goal of this type of bankruptcy is for you to reorganize your finances so that you would be able to repay most of your creditors.  If you have many and expensive assets that you want to keep after bankruptcy, this may be the route to go.

Life after bankruptcy

Life after bankruptcy can feel like a whole new world.

You’ve got the fresh financial start you need, but your credit has taken a major hit and your ego potentially has as well.

I encourage you to see it all as a blessing.

Breathe a sigh of relief that you have achieved the financial break and fresh start that will catapult you to the next level of your life.

After you file bankruptcy it’s important that you maintain control of your finances by making smart life choices.

  1. Keep your job and continue to move up the ladder you’re on to increase your income.
  2. Pay all of your bills on time. Don’t let yourself get behind because that’s how things snowball.
  3. Rebuild your credit. You might start with secured credit cards then move to unsecured. You can still get a car loan immediately after filing and eventually a mortgage or other loans over time if you choose to.

You have the freedom to create the life you choose after bankruptcy, but you might need support to make it happen.

Schedule a complimentary consultation with me so we can discuss the best steps for your life after bankruptcy.