How To Protect Assets in Michigan?
When your family is struggling with money troubles, it's easy to feel like you're alone. The truth is, hard-working people across Michigan are falling behind on their home loans, car payments, and other debts. If you pay your bills late, you risk creditors taking away your most cherished possessions, including your vehicle and home.
DebtStoppers asset protection strategies can help you stay in your home, hold on to your vehicle, and keep your personal belongings. Call or text us today at 313-880-3970 to schedule a free asset protection consultation with one of our experienced Michigan lawyers, and we can show you how bankruptcy laws can help you protect your assets.
What You Need To Know About Asset Protection Laws in Michigan?
When you take a loan out to make a large purchase — such as a car or real estate — you enter into a legal agreement with a bank or other lender. The lender gives you the money you need to make the purchase, and you promise to make monthly payments until the amount borrowed is paid off.
Typically, these kinds of loans are "secured" by the property you are financing. This means that if you default and fall behind on your payments, the lender can legally assume ownership of whatever you used the loan to purchase.
For instance, if you financed a home purchase in Michigan, you likely signed a mortgage or deed of trust, permitting the lender to take possession of your house if you fail to make timely payments. If you default on the loan, the lender can foreclose on you and force you out on the street, no matter how long you have made payments and lived in your home.
Your Options To Protect Assets From Creditors
Luckily, filing for bankruptcy in Michigan can provide asset protection from repossession or foreclosure. Not only does bankruptcy enable you to hold onto your belongings, but it will also wipe out your debt and give you a second chance at financial stability.
When filing for bankruptcy in Michigan, your options are Chapter 7 and Chapter 13. Chapter 7 allows you to quickly and easily eliminate most of your consumer debts. While Michigan law allows a trustee to liquidate some of your assets to pay creditors, this rarely happens.
However, if you want guaranteed asset protection, Chapter 13 never forces you to sell off any of your belongings. Instead, Chapter 13 reduces and restructures your debts into an affordable 3-to-5-year payment plan. As long as you follow the requirements of the plan, you'll be able to keep your possessions.
Another type of asset protection bankruptcy can provide is called an "automatic stay." As soon as you submit your petition, the court will grant this order, which forces your creditors to stop all collection activities — including foreclosure and repossession!
The Most Common Reasons for Asset Collection
Asset collection occurs when debt collectors accept hard assets as payment towards a debt. Often, once a creditor obtains a judgment against you, they can force you to sell assets to pay the debts you owe.
Creditors can pursue judgments against you for defaults on:
- Credit cards
- Medical bills
- Personal loans
- Payday loans
- And more!
DebtStoppers Can Help You
DebtStoppers can provide you with an asset protection plan that will keep your property safe. Call or text us today at 313-880-3970 to request a free consultation with one of our skilled Michigan lawyers.
Don't let creditors take away your belongings! Call or text DebtStoppers today at 313-880-3970 to get started on your custom asset protection bankruptcy plan.