Michigan Chapter 7 Bankruptcy Michigan Lawyer
Bruce Law Firm has bankruptcy lawyers in Monroe, Michigan serving all of Monroe County and Downriver Detroit. There are two main types of bankruptcy. Chapter 7 Bankruptcy Michigan is one of the two main types of bankruptcy options available to those who live at the state of Michigan. Chapter 7 bankruptcy is meant for people who do not believe they will have the ability to pay their current debt whatsoever, given their financial situation. Chapter 13 Bankruptcy Michigan is designed for people who believe that they can repay most of their general debt gradually if they were permitted to make a reasonable payment agreement. A Chapter 13 bankruptcy can also stop a Michigan foreclosure to save your home.
Electing to file a Chapter 7 bankruptcy is a significant life decision. It is a federal court proceeding filed in the US Bankruptcy Court. Those who file Chapter 7 in Michigan should fully comprehend all of their legal and financial responsibilities. They will also need to make significant decisions, such as which exemptions to file to protect certain personal assets.
A Michigan bankruptcy attorney can provide legal aid and advice to help you take action that is in your best interest. Your lawyer will also make sure that your filing is completed correctly with all of the required documentation. If there’s a problem with your filing, such as a discrepancy in your income, then your bankruptcy attorney in Michigan will help fix it.
Lawyers at Bruce Law Firm realize that you are probably overwhelmed and scared about the bankruptcy process, which explains why we want to help.
A Chapter 7 Bankruptcy is often called a liquidation or fresh start bankruptcy. A Chapter 7 bankruptcy starts with the filing of a petition with the Bankruptcy Court. Once the petition is filed, the court will assign a trustee to review your case. The court will also schedule a 341 hearing that you will be required to attend. This trustee will review your schedules and ask you questions regarding your case. Approximately 60 days after this 341 hearing, the court will grant a Chapter 7 discharge, and your case will be concluded.
A Chapter 7 bankruptcy will eliminate most unsecured debt. This includes credit card debt, medical bills, repossession debt and most other unsecured debts. It will not eliminate recent taxes, child support, most student loans and other forms of priority debt. If you are buying a house or car, you will want to continue paying on these assets. Most creditors will want you to execute a reaffirmation agreement in regards to your house or car debt. In Chapter 7 bankruptcy, you usually keep all your property. Michigan provides a generous exemption scheme that allows your attorney to prepare your schedules to ensure you keep your personal property. The vast majority of Michigan bankruptcy cases are considered no-asset cases because the attorney has exempted all of the debtor’s property.
You can talk to a seasoned Michigan Chapter 7 Michigan bankruptcy attorney about your particular situation and the following best steps to take during a free initial case review. Schedule your free, no-obligation consultation today when you call 734 240 2611 or contact us online.
Michigan Chapter 7 Bankruptcy Basics
Filing Chapter 7 Bankruptcy allows those in serious debt in Michigan to get their qualified debt “discharged” in exchange for giving up ownership of their non-exempt property.
“Discharged” debt is not erased nor forgiven, but instead, the debtor is freed of legal duties to repay the debt. Creditors of debts that are discharged additionally have no legal means of pursuing you for repayment in many situations. Not all debts can be discharged. A Chapter 7 Bankruptcy does not cover some debts.
Debt that Cannot Be Discharged in a Michigan Bankruptcy
Certain debts are ineligible for discharge under the Chapter 7 bankruptcy procedure, such as:
- Federal or Federally backed student loans, except in cases of “undue hardship”
- Alimony and child support obligations
- Debts incurred through fraud
- Loans or credit card purchases of $1,150 or more incurred within 60 days of submitting
- Most tax debt
- Criminal fines and penalties
- Debts owed after causing personal injury or death while driving intoxicated
Michigan Chapter 7 Means Test
Because Chapter 7 Bankruptcy is meant to be employed by people who can’t afford to repay their debt, the U.S. bankruptcy code has generated certain income limits and monetary asset limits. These limits are meant to avoid those with the capacity to pay back their debt out of filing Chapter 7.
You Don’t Have to Submit an application for the means test if your income falls below the state’s median income level. Also, you exempt the way test if your debts are mainly not consumer debt associated (i.e. mostly medical debt) or even if you are a disabled veteran.
Otherwise, you’re required to take the U.S. means evaluation to compute your average monthly income and expenditures.
To understand more About your choices for exempting particular assets and secured debts, speak with a Michigan bankruptcy attorney.
How Do I File a Chapter 7 Bankruptcy
Our Law Office provides free consultations by phone or in-person for customers who want to consider their financial choices. You’ll be asked about your income, debts and assets in the consultation and advised as to different alternatives out there. In the event you elect to retain our law firm, you would then be provided with a new client packet to begin providing the essential information for submitting. Be sure the information that you provide throughout the consultation and thereafter is complete and correct.
Can I file a Chapter 7 in Michigan?
A Bankruptcy attorney will gather information from your own regarding your monthly income and expenses to determine if you are eligible for Chapter 7 relief. Your bankruptcy lawyer will complete a budget for you as well as the Means Test imposed by Congress from the bankruptcy changes in 2005. The Means Test restricts the amount of certain expenses to IRS guidelines to your family size. When there are Means Test forms accessible on the internet to see if you qualify, many clients don’t understand how to fill them out correctly and consequently, the amount of disposable earnings is inaccurate.
Any person who has been granted a Chapter 7 discharge within the previous eight years can’t file for a Chapter 7 bankruptcy, but they can file a Chapter 13 in just four years.
Can I keep my car when filing a Michigan Chapter 7 Bankruptcy case?
Yes. A debtor is provided with a chance to maintain their vehicle in a Chapter 7 by signing a reaffirmation agreement (which is essentially an agreement to cover under the same or comparable stipulations of the initial purchase agreement for the automobile.
Can I keep my house when filing a Michigan Chapter 7 case?
A Debtor will continue to maintain their house in Chapter 7 if they are either current in the mortgage or otherwise reach a forbearance or modification agreement with the mortgage company. Suppose a borrower is behind in their mortgage payments, and have been not able to reach a modification, but want to maintain the home. In that case, a Chapter 13 plan provides them up to five years to catch up on mortgage obligations. In 2010, the bankruptcy court also began to let mediations in Chapter 13 cases to attempt to reach a modification. If a modification is powerful in Chapter 13, then the debtor may convert to a Chapter 7. As of May 2012, debtors are currently allowed at Chapter 7 to strip another mortgage, or HELOC provided the house is worth less than what you owe the first mortgage.
What happens after I file a Chapter 7 Bankruptcy?
After Filing for bankruptcy, debtors often wonder when they are going to have good credit again. A consumer credit report stores information about bankruptcy for ten years. But it requires just about 18 weeks of paying your bills on time to re-establish a good credit score which would show that you can manage your finances wisely. It is often faster to restore your credit by filing bankruptcy than to leave all the bad debt sitting on your credit report where you can nonetheless be subject to lawsuits and garnishments and have a bad debt to income ratio precluding new lenders from providing you with credit.
Residents across southeast Michigan will file their bankruptcy with the U.S. Bankruptcy Court Eastern District of Michigan.
Because the Chapter 7 Bankruptcy process is so complex and because there are so many facets that have to be thought about, the majority of bankruptcy filings are completed with the aid of a lawyer.
Bruce Law Firm offers personalized support, information, and legal representation for many measures of filing Chapter 7 at Michigan. We consider the totality of your assets, income, along with other conditions that will help you opt for the most valuable options for your unique circumstance.