{"id":3258,"date":"2021-07-05T05:56:27","date_gmt":"2021-07-05T05:56:27","guid":{"rendered":"https:\/\/hsapclaw.com\/?p=3258"},"modified":"2023-04-28T06:54:43","modified_gmt":"2023-04-28T06:54:43","slug":"bankruptcy-filing-in-michigan","status":"publish","type":"post","link":"https:\/\/hsapclaw.com\/bankruptcy-filing-in-michigan\/","title":{"rendered":"An Overview of Bankruptcy Filing in Michigan"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Bankruptcy filings are generally regulated by federal law; however, bankruptcy laws may vary from state to state. In Michigan, there are certain guidelines that you need to follow in filing bankruptcy. A <\/span><a href=\"https:\/\/hsapclaw.com\/\"><span style=\"font-weight: 400;\">reliable Royal Oak bankruptcy attorney<\/span><\/a><span style=\"font-weight: 400;\"> can help you understand the bankruptcy laws to avoid unnecessary errors and penalties in your <\/span><b>bankruptcy filing<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article will help you understand how bankruptcy works by answering the following questions:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What are the Different Types of Bankruptcy?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Will Filing Bankruptcy in Michigan Wipe Out All My Debts?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How Do I File Bankruptcy in Michigan?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How Do I Keep My Property When Filing for Bankruptcy?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Where Do I File My Bankruptcy Petition?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What is the Role of a Bankruptcy Attorney?<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_Different_Types_of_Bankruptcy\"><\/span><span style=\"font-weight: 400;\">What are the Different Types of Bankruptcy?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-662a13321a6a7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-662a13321a6a7\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/hsapclaw.com\/bankruptcy-filing-in-michigan\/#What_are_the_Different_Types_of_Bankruptcy\" title=\"What are the Different Types of Bankruptcy?\">What are the Different Types of Bankruptcy?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/hsapclaw.com\/bankruptcy-filing-in-michigan\/#Chapter_7_Bankruptcy\" title=\"Chapter 7 Bankruptcy\">Chapter 7 Bankruptcy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/hsapclaw.com\/bankruptcy-filing-in-michigan\/#Chapter_13_Bankruptcy\" title=\"Chapter 13 Bankruptcy\">Chapter 13 Bankruptcy<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/hsapclaw.com\/bankruptcy-filing-in-michigan\/#Will_Filing_Bankruptcy_in_Michigan_Wipe_Out_All_My_Debts\" title=\"Will Filing Bankruptcy in Michigan Wipe Out All My Debts?\">Will Filing Bankruptcy in Michigan Wipe Out All My Debts?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/hsapclaw.com\/bankruptcy-filing-in-michigan\/#How_Do_I_File_Bankruptcy_in_Michigan\" title=\"How Do I File Bankruptcy in Michigan?\">How Do I File Bankruptcy in Michigan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/hsapclaw.com\/bankruptcy-filing-in-michigan\/#How_Do_I_Keep_My_Property_When_Filing_for_Bankruptcy\" title=\"How Do I Keep My Property When Filing for Bankruptcy?\">How Do I Keep My Property When Filing for Bankruptcy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/hsapclaw.com\/bankruptcy-filing-in-michigan\/#Where_Do_I_File_My_Bankruptcy_Petition\" title=\"Where Do I File My Bankruptcy Petition?\">Where Do I File My Bankruptcy Petition?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/hsapclaw.com\/bankruptcy-filing-in-michigan\/#What_is_the_Role_of_a_Bankruptcy_Attorney\" title=\"What is the Role of a Bankruptcy Attorney?\">What is the Role of a Bankruptcy Attorney?<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><span style=\"font-weight: 400;\">Before you declare bankruptcy, you must know how to choose the most appropriate bankruptcy type that will solve your financial problems. Chapter 7 and Chapter 13 are the two common types of bankruptcy.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chapter_7_Bankruptcy\"><\/span><span style=\"font-weight: 400;\">Chapter 7 Bankruptcy<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/hsapclaw.com\/chapter-7-bankruptcy\/\"><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-3259 size-medium\" title=\"Bankruptcy Filing in Michigan\" src=\"https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/07\/Bankruptcy-Filing-in-Michigan-300x300.jpg\" alt=\"Bankruptcy Filing in Michigan\" width=\"300\" height=\"300\" srcset=\"https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/07\/Bankruptcy-Filing-in-Michigan-66x66.jpg 66w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/07\/Bankruptcy-Filing-in-Michigan-150x150.jpg 150w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/07\/Bankruptcy-Filing-in-Michigan-200x200.jpg 200w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/07\/Bankruptcy-Filing-in-Michigan-300x300.jpg 300w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/07\/Bankruptcy-Filing-in-Michigan-400x400.jpg 400w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/07\/Bankruptcy-Filing-in-Michigan-600x600.jpg 600w, https:\/\/hsapclaw.com\/wp-content\/uploads\/2021\/07\/Bankruptcy-Filing-in-Michigan.jpg 626w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/> Chapter 7 bankruptcy<\/span><\/a><span style=\"font-weight: 400;\"> is also known as \u201c<\/span><b>liquidation<\/b><span style=\"font-weight: 400;\"> bankruptcy\u201d. <a href=\"\/chapter-7-bankruptcy-exemptions\/\">Chapter 7 bankruptcy<\/a> is generally the best option for those with a low income and few assets. This bankruptcy chapter can wipe out many types of debt (unsecured debts). If you&#8217;re behind on your bills and don&#8217;t have the means to afford living expenses and monthly payments, filing Chapter 7 bankruptcy could be your last resort to help you reorganize your finances and have a fresh start. However, you may have to give up some of your assets, and it will have a long-lasting negative impact on your creditworthiness. A court-appointed trustee will sell your nonexempt property to pay your creditors. There are a few requirements you&#8217;ll need to meet to qualify for a Chapter 7 bankruptcy:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Take credit counseling sessions from an approved credit counseling agency within 180 days before filing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pass the <\/span><a href=\"https:\/\/hsapclaw.com\/how-important-is-the-bankruptcy-means-test-when-declaring-bankruptcy\/\"><b>means test<\/b><\/a><span style=\"font-weight: 400;\">. (The average of your monthly income during the previous six months must be less than the median income for the same-sized household in your state. This test will determine if your disposable income is high enough to make partial payments to unsecured creditors. If you don&#8217;t pass the means test, you may still be able to file a Chapter 13 bankruptcy).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can\u2019t have filed a Chapter 13 bankruptcy during the past six years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can&#8217;t have filed a Chapter 7 bankruptcy during the past eight years. (If you tried to file a Chapter 7 or 13 bankruptcy and your case was dismissed, you have to wait at least 181 days before trying again).<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Chapter_13_Bankruptcy\"><\/span><span style=\"font-weight: 400;\">Chapter 13 Bankruptcy<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/hsapclaw.com\/chapter-13-bankruptcy\/\"><span style=\"font-weight: 400;\">Chapter 13 bankruptcy<\/span><\/a><span style=\"font-weight: 400;\">, also known as the \u201cwage earner\u2019s bankruptcy\u201d, allows debtors with enough income to repay all or some of their debts as an alternative to liquidation. In this chapter, you must repay your creditors some or all of what you owe using a three- to a five-year repayment plan. This will allow you to eliminate unsecured debts while catching up on missed mortgage payments. Here are some of the factors you&#8217;ll need to consider to qualify for a Chapter 13 bankruptcy:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Debt Limits \u2013 Your secured debts and unsecured debts cannot exceed certain amounts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Steady Income &#8211; You need to prove to the bankruptcy court that you have sufficient income to pay into a repayment plan<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Will_Filing_Bankruptcy_in_Michigan_Wipe_Out_All_My_Debts\"><\/span><span style=\"font-weight: 400;\">Will Filing Bankruptcy in Michigan Wipe Out All My Debts?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A Chapter 7 bankruptcy will generally <a href=\"https:\/\/hsapclaw.com\/discharge-most-debts-by-filing-chapter-7-bankruptcy\/\">discharge your unsecured debts<\/a>, such as credit card debt, medical bills, and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start. However, some types of unsecured debts usually aren&#8217;t discharged through a Chapter 7 bankruptcy, including child support, alimony, student loans, and some tax debts.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, a Chapter 7 bankruptcy may discharge the debt you owe on secured loans. Secured loans are those backed by collateral, such as your home for a mortgage, or when a creditor has a lien on your property. However, even if the debt is <\/span><b>discharged<\/b><span style=\"font-weight: 400;\">, the creditor may still have the right to foreclose on or repossess your property.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, Chapter 13 bankruptcy can help you repay your priority debts including child support and alimony arrearages. The plan must apply your disposable income (the amount remaining after paying secured and priority debt, as well as allowed living expenses) toward unsecured debts, such as credit card balances and medical bills. This bankruptcy chapter can help you stop a mortgage foreclosure, allow you to keep property that isn&#8217;t protected by a bankruptcy exemption, and &#8220;cramdown&#8221; secured debts when the property is worth less than the amount owed.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Do_I_File_Bankruptcy_in_Michigan\"><\/span><span style=\"font-weight: 400;\">How Do I File Bankruptcy in Michigan?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Filing bankruptcy can be financially, physically, and emotionally draining. A qualified <a href=\"https:\/\/hsapclaw.com\/bankruptcy-attorneys\/\">Royal Oak bankruptcy lawyer<\/a> can guide you throughout the <\/span><b>bankruptcy process<\/b><span style=\"font-weight: 400;\">. Here are the steps in filing bankruptcy:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Choose the best bankruptcy chapter for you<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prepare all necessary financial documents<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Take a credit counseling course<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fill out the official bankruptcy forms and file a complete paperwork<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Attend the 341 creditor&#8217;s meeting<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Attend the confirmation hearing and make plan payments (for Chapter 13)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">File a debtor&#8217;s education course certificate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Receive your debt discharge<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_Do_I_Keep_My_Property_When_Filing_for_Bankruptcy\"><\/span><span style=\"font-weight: 400;\">How Do I Keep My Property When Filing for Bankruptcy?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Bankruptcy<\/b><span style=\"font-weight: 400;\"> doesn\u2019t mean you\u2019ll lose all the assets that you own. You can keep your property protected by an exemption or<a href=\"https:\/\/hsapclaw.com\/faq-items\/what-are-exempt-properties-in-a-michigan-bankruptcy\/\"> &#8220;exempt&#8221; property<\/a>. There are state bankruptcy exemption laws that can help you save your assets. <a class=\"linkilo_keyword_link  hyperlinks\" href=\"\/bankruptcy-basics\/\"  rel=\"dofollow\" title=\"Michigan bankruptcy\" data-linkilo-keyword-link=\"linked\">Michigan bankruptcy<\/a> exemptions cover your homestead, motor vehicle, pension or retirement accounts, wages, and insurance benefits. Spouses filing together can double the exemption amount if both own the property. When a bankruptcy exemption doesn&#8217;t cover the property, you&#8217;ll either lose it in Chapter 7 or have to pay for it in the Chapter 13 repayment plan.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Where_Do_I_File_My_Bankruptcy_Petition\"><\/span><span style=\"font-weight: 400;\">Where Do I File My Bankruptcy Petition?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Your bankruptcy case officially starts when you file your complete paperwork with the local bankruptcy court in Michigan and either pay the filing fee or request a fee waiver. Michigan has two bankruptcy districts\u2014Eastern and Western. Each has multiple locations serving various geographical areas.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_Role_of_a_Bankruptcy_Attorney\"><\/span><span style=\"font-weight: 400;\">What is the Role of a Bankruptcy Attorney?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Filing for bankruptcy requires hard work and patience. It is a progressive process that will help you pay off your debts and achieve financial freedom, one step at a time. Debt repayment and reorganization of your finances shall be your priority. For legal assistance, do not hesitate to schedule a consultation with our <\/span><a href=\"https:\/\/hsapclaw.com\/contact\/\"><span style=\"font-weight: 400;\">experienced Royal Oak bankruptcy attorneys<\/span><\/a><span style=\"font-weight: 400;\"> at Hammerschmidt Stickradt &amp; Associates. Our lawyers will help you determine the bankruptcy chapter that you will file, keep the assets that you want, and create an affordable <\/span><b>repayment<\/b><span style=\"font-weight: 400;\"> plan to pay off all your debts. We will be with you every step of the way.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bankruptcy filings are generally regulated by federal law; however, bankruptcy laws may vary from state to state. In Michigan, there are certain guidelines that you [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":3260,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/posts\/3258"}],"collection":[{"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/comments?post=3258"}],"version-history":[{"count":7,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/posts\/3258\/revisions"}],"predecessor-version":[{"id":4192,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/posts\/3258\/revisions\/4192"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/media\/3260"}],"wp:attachment":[{"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/media?parent=3258"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/categories?post=3258"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hsapclaw.com\/wp-json\/wp\/v2\/tags?post=3258"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}