One out of every 70 United State households files for bankruptcy. Bankruptcy in the state of Michigan, unfortunately, is all too common. When the housing bubble in 2008 collapsed, the state of Michigan arguably took the biggest hit to their economy. Many Michigan residents are still facing the negative side effects of the housing collapse as there were over 56,000 bankruptcy fillings during 2011 in the state of Michigan alone. If you are heavily surrounded by debt and considering filing for bankruptcy, it is important to know your options and how much to file bankruptcy.

Filling for bankruptcy is often viewed as a “fresh start” for those surrounded by debt. However, filling for bankruptcy will not wipe out all of your debts. There are two types of personal bankruptcy you can file for: chapter 7 bankruptcy and chapter 13 bankruptcy. Chapter 13 is a form of bankruptcy that involves restructuring your debt, rather than liquidating your assets. With chapter 13, the debtor is usually allowed to retain most of their property. Chapter 7, on the other hand, typically involves the debtor liquidating their assets to pay off most of their debt.

In any bankruptcy event, it is always highly recommended that you seek the assistance of a bankruptcy professional through a bankruptcy lawyer. Bankruptcy attorneys in Michigan can evaluate your current financial situation and help you decide which route is your best option. A bankruptcy lawyer will also know how much to file bankruptcy. Many bankruptcy attorneys will even provide some free information and consultation to those considering filing for bankruptcy. Filing for bankruptcy is a very serious matter. If you any have questions regarding filing for personal bankruptcy or other general bankruptcy questions, contact a local Michigan bankruptcy lawyer to ensure you make the right decisions.