Advantages to Bankruptcy in Michigan

It’s a common misconception that bankruptcy is a bad thing. However, this almost never the case. For people in a certain situation, bankruptcy can be purely advantageous for a number of reasons.

1.) Discharge of most debts.

This is the primary goal of most bankruptcies; to have as much of your unsecured debts discharged. There are a few types of debt that are not dischargeable, but for the most part, bankruptcy is a relatively quick and easy way to end the creditor harassment, hardship, anxiety, and stress normally associated with debt overload.

2.) Protection of property and income from unsecured creditors

If there are unsecured creditors who are after your property, bankruptcy is often the only way to protect your property. This can possibly include up to total protection for a home, car, or any other vital property. Bankruptcy also prevents any garnishment of wages or income once your bankruptcy petition is filed. This extends from your job to even Social Security or other public penefit payments.

3.) Tools for eliminating or modifying secured debts

While a bankruptcy discharge will not, by itself, eliminate claims by secured creditors, there exists other provisions in the Bankruptcy Code that allow many types of liens to be eliminated or reduced.

4.) Automatic stay

An automatic stay is an automatic court order that you gain instantaneously on filing a petition. This is sometimes the most valuable feature of a bankruptcy since it prohibits all sorts of collection attempts by creditors, including repossessions, garnishments, utility shutoffs, foreclosures, and evictions. The stay also is an effective way to end creditor collection efforts. Basically, it gives you that breath of relief that you desperately need.


It’s a myth that bankruptcy causes lots of negative repercussions. Bankruptcy can be one of the most beneficial solutions for you depending on your situation. Don’t hesitate to come in for a free consultation!