Michigan Bankruptcy Lawyers
Take your bankruptcy questions to a Michigan bankruptcy attorney.
If you're considering bankruptcy, you probably have a lot of questions about bills, creditors, and even your home.
A Michigan bankruptcy attorney may be able to answer those questions and help you explore your options so that you can make informed decisions about your financial circumstances.
Simply complete the free form below or call 877-833-1059, and we'll put you in touch with a Michigan bankruptcy attorney so that you can get more information about your situation.
Filing Bankruptcy in Michigan
Bankruptcy laws give individuals two main types of personal bankruptcy to help them meet their debt relief goals: Chapter 7 and Chapter 13 bankruptcy. Deciding which chapter may be right for you depends on your unique situation.
Chapter 7 is the most popular type of personal bankruptcy among Michigan bankruptcy filers. In a Chapter 7 bankruptcy, debts relating to credit cards, medical bills and personal loans may be completely wiped out and forgiven by the bankruptcy court.
Chapter 13 bankruptcy is often used by homeowners to help halt foreclosure proceedings and catch up on missed payments, or by those with a regular income to pay back their debts. Chapter 13 creates a regular repayment plan in which debts are repaid over a period of three to five years.
Michigan Bankruptcy Protections
Filing Chapter 7 bankruptcy can sometimes involve a process called "liquidation", in which some of the filer's property may be sold to pay a portion of their debts. However, Michigan laws allow for some property to be exempt, or protected, from sale, and a significant number of cases involve no liquidation at all.
These exemptions are set up to allow individuals going through bankruptcy to come out with the essential items they need to grow their life after bankruptcy.
Exempt property in Michigan includes:
- Homestead: Up to $30,000 for your residence (up to $45,000 if disabled or over 65 years old)
- Wages: Up to 60% of wages for debtors with family; up to 40% of wages for others
- 100 percent of worker's compensation, unemployment and servicemember's benefits
- Automobiles: Up to $2,775 for one vehicle
- Household goods, furniture and appliances, up to $450 per item and up to $3,000 total
- All family pictures, clothing, fuel for 6 months, burial plots and health aids
- $2,000 in crops, farm animals and feed
- $500 in value of a church pew
- $500 in value of one computer and accessories
- $2,000 in value of tools and equipment related to profession
In a Chapter 13 bankruptcy, all property and assets may be protected from creditors by the bankruptcy court. This is because Chapter 13's repayment plan allows creditors to receive a portion of the debt owed, and liquidation is not necessary.
Qualifying for Bankruptcy in Michigan
There are certain steps required to determine if you are able to file bankruptcy, and which chapter you are eligible to file.
The most important aspect is known as the Chapter 7 means test, which determines in part whether you can file Chapter 7 or Chapter 13 bankruptcy.
The means test looks at your income and compares it to the median income in Michigan for your family size. Typically, if your income is below the median, you can file Chapter 7. If it is above the median, Chapter 13 remains an option.
Other things that may determine if you qualify for bankruptcy including whether you have filed in the past 8 years, or whether you have had a case dismissed in the past 6 months. These issues are not common for most bankruptcy filers.
Talk to a Michigan Bankruptcy Lawyer Today
Get the facts about filing bankruptcy. Connect with a sponsoring bankruptcy lawyer today to learn more about bankruptcy protections and which chapter you might qualify for. Simply fill out our free bankruptcy evaluation form or call 877-833-2410 to take the first step today.
Michigan bankruptcy laws may have changed since our last update.
the latest information on your state's bankruptcy laws, speak to a local
Michigan bankruptcy lawyer.