It is quite normal for citizens to experience financial difficulties at some point of their lives. For some, the problem may just be minor that drastic measures are no longer necessary. However, there are still some who experience seemingly irreparable damages that bankruptcy is the only way out. A Chapter 13 attorney from Sterling Heights may help you get to the finish line.

Most people, not businesses, fit in Chapters 7 and 13. There is actually a big difference between the two. Before you can even decide which chapter you can go to, you need to have your financial situation thoroughly checked by your lawyer first. A lot of documents and evidences will have to be presented in this case.

Lawyers will have to know more about the nature of your debts. You will have to present proofs for this. To know how capable you are in paying for these debts, you also need to present documents pertaining to your employment background. Lawyers will also calculate your usual monthly expenses to determine how much disposable income you will have every month for your debts.

Indeed, many factors will have to be considered first before a decision can be made. Your lawyer will even perform the so called median income test. If your median income every year falls below that of a usual worker in Michigan, you may be accepted for Chapter 7. Otherwise, you will have to go for Chapter 13.

Whatever the case, you need to take the right steps so that you will not fall for the cons of bankruptcy. Many people think that declaring themselves bankrupt will solve everything. You actually have to be aware that your credit information, ability to avail of future credits, reputation and even the ability to find a new job can be affected by bankruptcy.

When you talk about Chapter 13 or restructured payment bankruptcy, no debts will be discharged on your part. This means that you will have to pay for the entire amount of your debts plus interest. The only advantage is that you can do this over a longer period of time, usually five years.

If you are unable to keep up with your dues, the interest rate could grow significantly. Nevertheless, you will have a better way of streamlining your expenses every month. You only have to pay one amount to the authorities on a monthly basis, and they will take care of dividing the money and distributing it to your creditors.

Make sure that you select the right lawyer to help you out though. Due to the relevance of the field of bankruptcy, many lawyers opt to specialize in it. Clients will have to strictly do comparisons to get the right candidate. Schedule initial consultations with all your prospects so you will have the chance to ask questions.

You need to ask every Chapter 13 attorney from Sterling Heights that you meet about his or her experience level. Make sure that the prospect has had many clients in the past with cases that are similar to yours. Get references and verify more about their reputation by asking authorities and organizations about it.