Bankruptcy in Michigan
Declining car sales and other uncertainty in the nations auto market has led to large unemployment rates and a deepening financial crisis in Michigan. If you and your family are facing foreclosure or simply can no longer afford to pay your bills, you should consult with a Michigan bankruptcy lawyer to see if filing bankruptcy might help.
Chapter 7 is the most common form of personal bankruptcy that is filed in Michigan. In Chapter 7, your non-exempt property is given to a bankruptcy trustee. The trustee then liquidates your property and gives the proceeds to your unsecured creditors. In exchange for this, you are entitled to a discharge of some of your debt.
Chapter 13 is your other option for filing personal bankruptcy in Michigan. In Chapter 13 bankruptcy, you keep possession and ownership of all of your assets. In exchange, you have to give some portion of your future income to repay your creditors. Usually, this is over a period of three to five years.
Chapter 7 is where you file a petition asking the court to discharge your debts. The basic idea behind chapter 7 is to discharge or wipe out your debts in exchange for you giving up property. This is except for “exempt” property that the law allows you to keep. In most cases, all of your property will be exempt. You will lose nothing. However, if you have property which is not exempt, it will be liquidated (sold) and the money distributed to your creditors.
Chapter 13 is where you file a “plan” that shows how you plan to pay off some of your past-due and current debts over three to five years. Chapter 13 bankruptcy allows you to keep valuable property that might be lost under Chapter 7. These are things like your house and car. You can keep this valuable property if you can make the payments which the bankruptcy law requires you to make to your creditors. Most of the time, these payments are at least as much as your regular monthly payments on your mortgage or car loan. Some extra payment is also required for you to catch up on the amount you have fallen behind.
Chapter 7 seems to be far more appealing to most people, but Chapter 13 may be a better option for you. As indicated above, if you want to keep property like your house or car, and you are behind on your mortgage or car loan, Chapter 13 is probably better for you.
Also, you may not qualify to file Chapter 7 in Michigan. You are normally eligible to file Chapter 7 if your income is below the median income of a family your size in Michigan. If it is over the median, you may still qualify, but your income is put through the “Means Test.”
In Michigan, you are allowed to choose between federal or state exemptions if you are eligible to file Chapter 7. A Michigan bankruptcy attorney will know whether you are qualified to file Chapter 7, and if so, which set of exemptions are best for you. Your Michigan bankruptcy lawyer will also know whether Chapter 7 or Chapter 13 is better for you, if you have the option of filing either one.
It is important to choose a Michigan bankruptcy attorney to advise you. Michigan bankruptcy lawyers specialize in bankruptcy law. They work daily with bankruptcy cases. They are aware of all the changes and updates that happen in Michigan bankruptcy law.
BankruptcyHome.com is the Web site where you will find a good Michigan bankruptcy attorney. BankruptcyHome.com is where you will find a skilled Michigan bankruptcy lawyer who will help you make the right bankruptcy choices for you.
This decision may affect you and your family for the rest of their life. You deserve the best advice possible from a Michigan bankruptcy lawyer near you.
