Bankruptcy Attorney in Royal Oak, MI

In typical situations, you borrow money and intend to pay it back as soon as possible. However, unforeseen and unexpected expenses in the form of medical issues, accidents, or bad financial decisions may sometimes lead to you spending more money than you are making. This could result in not paying most or all of your bills on time. Before you know it, you have already accumulated several thousand dollars in debt with no means to pay your creditor.

Filing for Chapter 7 bankruptcy may be a viable alternative when finding yourself in this situation. But before doing so, you must be aware of the exemptions in Chapter 7 bankruptcy to see if it fits your current situation. Our attorneys at Hammerschmidt Stickradt & Associates know exactly the Chapter 7 Bankruptcy exemptions in Michigan. Contact our bankruptcy attorney today and get all the facts you need on Chapter 7 bankruptcy before filing for it.

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Why Do I Need a Bankruptcy Attorney in Royal Oak, Michigan?

Aside from having someone who is knowledgeable in exemptions in Chapter 7 bankruptcy, a skilled bankruptcy attorney can serve clients no matter how bad their financial situations are. Our attorneys at Hammerschmidt Stickradt & Associates take pride in walking you through every step of the Bankruptcy process. We will do everything we can to help you achieve debt relief and regain control of your finances.

Every bankruptcy attorney at our law firm works hard to provide the best legal services possible while maintaining consistent professionalism. We believe that everyone we work with:

  • Shows strong integrity and work ethic in all their dealings
  • Treats everyone with respect and consideration regardless of their social status
  • Takes an active role in helping the community in their way
  • Considers helping their clients go through a challenging time in their lives a great achievement

Still undecided on what you want to do next? Get a free consultation from us so you will be well-informed on Chapter 7 bankruptcy exemptions in Michigan!

What is Chapter 7 Bankruptcy?

Bankruptcy is a federal legal process of the United States government made to ease an individual’s financial burdens due to large amounts of debt. In most Chapter 7 Bankruptcy cases, an automatic stay will be issued by the bankruptcy court right after it is filed. This court order tells debt collectors and creditors to stop collecting from you immediately.

When you file for Chapter 7 Bankruptcy, a trustee can sell or seize some of your assets to generate money so you can repay your debt. After your properties have been liquidated, most or all of your debt will be erased. Chapter 7 bankruptcy usually lasts for about 3 to 6 months after filing.

The good news is that most people who file for Chapter 7 Bankruptcy get to keep most of their assets. For this reason, knowing what the exemptions for Chapter 7 bankruptcy are is crucial so you can protect what is yours while trying to clear your debt.

Get more information on Chapter 7 bankruptcy exemptions in Michigan by speaking to a bankruptcy attorney today!

What are the Exemptions in Chapter 7 Bankruptcy?

Chapter 7 bankruptcy requires some of your assets liquidated in exchange for debt relief. Fortunately, there are exemptions in Chapter 7 bankruptcy that protects you from losing essential items that you own during the liquidation process. Chapter 7 bankruptcy exemptions in Michigan include the following:

  • Your home
  • Your car
  • Your retirement accounts
  • Your pets
  • Some household items that cost around $700 or below

Whether exemptions in Chapter 7 bankruptcy will protect your property will depend on what you own, how much each asset is worth, and the ability of the state to exempt your property from being liquidated. This is why certain luxury items like expensive cars, boats, and mansions could remain unprotected when filing for Chapter 7 bankruptcy.

During the bankruptcy process, you will be asked to list all your assets while being informed of any exemption for each item that can be claimed. You can keep the property if the exemption can entirely cover it. But if the exemption will not cover a particular item, the bankruptcy trustee will sell it and use the money to pay your debt.

Some cases can get quite complicated, especially when certain items are partially covered by the Chapter 7 exemption. That is why having a bankruptcy attorney helping you along the process is very important.

How Do I File for Chapter 7 Bankruptcy?

Chapter 7 is usually the first option for those wanting to file for bankruptcy because it can be completed within a few months. It also makes sense for those whose assets are essential to their daily life due to the number of exemptions in Chapter 7 bankruptcy. It is also fairly cheap since there is no need to pay your creditors.

Before sending your paperwork for Chapter 7 bankruptcy filing, you (either representing yourself or your business) must appear before the bankruptcy court and comply with the orders given at least 180 days before your bankruptcy petition. Unless you are qualified for an exception, you are required to undergo counseling from an authorized credit counseling agent within 180 days before you file to help you determine what exemptions in Chapter 7 bankruptcy your assets will be under. You must also pass a totality of the circumstances test and means to determine if your present situation qualifies you to file for Chapter 7 bankruptcy.

What are the Other Types of Bankruptcy?

Under the Bankruptcy Code, filing for bankruptcy in the United States is categorized into five chapters. Your bankruptcy attorney will help you determine which of these most apply to you based on the situation and source of income.
Apart from Chapter 7 bankruptcy, here are other bankruptcies you may choose to file:

  • Chapter 9 – Municipality
  • Chapter 11 – Business reorganization
  • Chapter 1 – Family farmer reorganization
  • Chapter 13 – Consumer reorganization

So if you are planning to file for Chapter 7 bankruptcy but do not want to give up any expensive items you possess, get in touch with a skilled bankruptcy attorney right away!

Call our Chapter 7 Bankruptcy Exemptions Attorney in Michigan Now!

Filing for Chapter 7 Bankruptcy (or any bankruptcy) is a difficult decision. You need to know all the facts, consider many factors, and be aware of any possible exemptions before you file. Our team at Hammerschmidt Stickradt & Associates is highly qualified to give the best legal services in other practice areas like Chapter 13 bankruptcy, credit card debt, student loan debt, abusive creditors, wage garnishment, stop foreclosure, and automatic stay in bankruptcy.

Give us a call to avail yourself of our free consultation. We will do whatever is needed to help you!