Who Files for Chapter 7?
The majority of bankruptcy applicants file under this chapter, but not all are eligible. To determine if you qualify for this kind of bankruptcy with your circumstances considered, speak with one of our Michigan bankruptcy lawyers. We will carefully explain the nuances of each type to help you arrive at an informed choice, and guide you through the bankruptcy process.
Should I File a Chapter 7 Bankruptcy?
Many families in Michigan Face overwhelming debt and struggle to attain financial freedom. Chapter 7 is one of the most viable methods of bankruptcy to fix your debt problems. To check your eligibility, you will need to take the Bankruptcy Means Test which will examine all your assets, income, and expenses. You must not have filed a Chapter 7 bankruptcy case in the past 8 years, or a Chapter 13 case in the past 6 years to remain eligible.
What Assets will be Protected From Creditors?
To determine which of your assets and properties can be protected from collecting creditors in a Chapter 7 bankruptcy, the state of Michigan has a bankruptcy exemption chart to reference. This chart shows property exemption limits which are calculated by getting the difference between your debt on an asset and its current value.
There are general guidelines followed when deciding which property will or will not be protected.
- Secured loans can be kept as long as payments are up-to-date and the equity is covered by state exemptions.
- If you are current on payments but the equity is not covered by exemptions, the trustee has the right to liquidate that property.
- If you’re married, you can file bankruptcy with your spouse or as an individual. The former is preferred as you can claim more sets of exemptions.
- You must pay to the trustee the equivalent value of a non-exempt property if you want to keep it.
How Do I File a Chapter 7 Bankruptcy in Michigan?
There are several steps involved when filing for a Chapter 7 bankruptcy in Michigan and you can check the bankruptcy process overview to get the general picture. Before filing your bankruptcy application, you will need to undergo credit counseling as mandated by the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act. The BAPCPA also requires a filer to take a bankruptcy means test to check if your income exceeds Michigan’s median income standard. If you go above the limit, you will be declared ineligible for Chapter 7 bankruptcy. Once you go through these steps, you should consult with your legal representative to know which of your properties fall under Michigan’s exemption rules and help prepare your paperwork.
Get Help From our Compassionate Michigan Bankruptcy Attorneys
The HS&A, P.C. Law has served over 10,000 clients in Michigan. Our team of bankruptcy attorneys personally and fully evaluates each of our clients’ cases to make sure they get a favorable outcome. We will help get you on the road to financial freedom.
Speak with one of our Michigan bankruptcy attorneys today to get a free case review. Call us if you wish to find out more about a Chapter 7 bankruptcy and how it can be the best-fit debt relief option for you.