Is credit card debt erased by filing bankruptcy in Michigan?

If you have suffered long periods of unemployment, illness or have been through a divorce, you may need to consider how to file for bankruptcy in Michigan. Bankruptcy rules are very specific and will help you eliminate credit card debt, medical debt and other non-secured forms of debt. Filing for Chapter 13 bankruptcy can also help protect valuable assets including your home, pension and vehicle. While filing for bankruptcy may not be the answer to your financial problems, it can help you get a fresh start.

Filing for Bankruptcy

Those who find themselves with out of control credit card debt, medical payments or other credit that they simply cannot pay, may consider filing for bankruptcy. Credit card debt and medical debt are the primary reasons that people will consider filing for bankruptcy. During times of high unemployment, people may be forced to allow many of their non-secured debt to go unpaid while they maintain their home mortgage, insurance and necessities for their family. 

Michigan Bankruptcy and Credit Card Debt

For debtors who meet the requirements for filing for bankruptcy, credit card debts, medical debts and other unsecured debt may be erased once a bankruptcy is accepted by the courts. All creditors must be notified as part of the bankruptcy filing. It is also important to note that the current bankruptcy laws may require that the debtors be able to prove that they have no reasonable expectation that they could repay the debt over a three to five year period.

Contacting a Bankruptcy Attorney

If you feel that you may meet the requirements and you need information on how to file for bankruptcy in Michigan, you should speak with a Michigan bankruptcy attorney. While it is possible to file for bankruptcy without the help of an attorney, it is not the best route to take. A Michigan bankruptcy attorney can help you understand your rights and your obligations before, during and after a bankruptcy filing.