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How Much To File For Bankruptcy In Michigan

Official Michigan Bankruptcy Forms

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Before the Michigan bankruptcy court discharges any debt, you must disclose your complete financial picture, including your income, expenses, property, creditors, and recent financial transactions. Youll find fillable, downloadable bankruptcy forms on the official form webpage. Youll file your forms with the local bankruptcy court along with a filing fee or fee waiver and proof that youve taken the mandatory counseling course .

Attend Your 341 Meeting

When you file a Chapter 7 bankruptcy in Michigan you will be required to attend one hearing, which is your 341 meeting. The 341 hearing is also referred to as the âMeeting of Creditorsâ, but in reality it is unlikely that many of your creditors will show up. Usually, your meeting will just be with your trustee. You can learn more about the hearing and what to expect in this video. Your goal with your 341 hearing should be to complete it in full on the first time without a continuance, so it is important to make sure that you are bringing all of your documentation. As we previously discussed when filing Chapter 7 bankruptcy in Michigan, you will need to have provided the trustee with documents in advance of your hearing date. If you do not make this deadline, it could result in dismissal of your case. Additionally, you also need to bring these documents to your hearing as well as two forms of identification. Youâll want to check which forms of identification are acceptable in your district. You will also have to bring your recent paystubs or any other proof of income.. The hearing itself is usually relatively quick. Essentially, the trustee will walk through your bankruptcy paperwork with you to verify that all the information provided is true and correct.

Getting Professional Legal Advice

$0 to $2,500

As mentioned in the previous section, at some point in the bankruptcy process, you may decide to hire someone to help you. If you qualify for free legal aid and help is available near you, this could cost you nothing. Or, if you just want help with the mechanical task of completing the forms and dont need legal advice, you can hire a bankruptcy petition preparer .

But if you have questions about how to interpret a particular form, or want an opinion about how bankruptcy law, state exemption laws, or federal tax laws apply to your particular situation, you may want to hire a bankruptcy lawyer, at least for an initial consultation.

More Information

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Where Do I File For Bankruptcy In Michigan

The U.S. Bankruptcy Courts are federal courts and there are two federal districts for the state of Michigan. The Eastern District of Michigan is headquartered in Detroit, while the Western District of Michigan is headquartered in Grand Rapids.

The Eastern District has bankruptcy courts in:

  • Bay City

The Western District has bankruptcy courts in:

  • Grand Rapids
  • Lansing

If you do not know where the nearest court is located, search under âU.S. Bankruptcy Courts” in the U.S. Court Locator.

When It Makes Sense To Hire A Lawyer

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For most cases, it is helpful to have a lawyer present when filing for bankruptcy. No matter how complicated a case may be, your bankruptcy lawyer should have the expertise to handle the case. Having an experienced attorney present can help you manage the process and relieve some of the stress. This is true for all Chapter 13 cases and many Chapter 7 cases.

Here are a few instances when it makes sense to hire an attorney:

  • Guidance a bankruptcy attorney can help you navigate all federal and state regulations, including Michigan exemptions.

  • Support – throughout the process, the attorney will be there if you have any questions during your meetings or responding via phone calls or emails.

  • Assessment – an experienced lawyer can assess your current financial situation and provide the best solution for you.

  • Protection An attorney will instruct you on how to proceed with debt collectors, particularly those with bad behavior.

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    How Much Does A Chapter 7 Bankruptcy Cost In Michigan

    One of the first questions people wonder when they start considering Chapter 7 bankruptcy is “how much is this going to cost?” There are three main expenses to filing for bankruptcy, filing fees, credit counseling and attorney’s fees.

    Filing Fees: As you may know, the filing fees are fixed for a Chapter 7 bankruptcy case filing at $335.00. Often, it is possible to not pay your filing fees up front and to make payments directly to the Court for your filing fees after filing in installment payments. Ask your attorney about this option.

    Two credit counseling courses are currently required for filing for either a Chapter 7 or Chapter 13 bankruptcy. One must be completed before you file and one must be completed after you file . Your attorney will direct you with where to complete these courses. I have pre-priced out these courses to provide my clients with the most affordable options, usually about $14.95 for the pre-filing course and $9.95 for the post-filing course if they are completed online.

    While this may sound expensive, you must remember that most people often discharge thousands of dollars of debt by filing for bankruptcy, and with that in mind, bankruptcy is a good deal! Call our office today to review your options!

    Attorney Allison Greenlee Korr can be reached at 269-381-4471 and offers FREE bankruptcy consultations.

    Filing Chapter 7 Bankruptcy In Michigan

    Chapter 7 bankruptcy or straight bankruptcy is a process designed to help consumers start over financially. Chapter 7 discharges unsecured debts such as high-interest credit cards and medical bills. Although the process is organized under federal law, Chapter 7 cases vary by jurisdiction. Each state, as well as the federal government, has enacted exemption laws that dictate the amount of property a debtor can keep through the bankruptcy process. In most cases, exemption laws protect all of the assets of the debtor allowing them to file for bankruptcy and keep all of their property.

    In addition to unique exemption laws, each state has different income guidelines for determining whether the debtor is eligible to file for Chapter 7. Thanks to bankruptcy reform in 2005, debtors seeking to file Chapter 7 bankruptcy must demonstrate that they do not have enough disposable income to pay something back to their creditors. If your income over the last 6 months is below the median in your state, you will automatically be eligible to file Chapter 7. If, on the other hand, your income is greater than the state median over the last 6 months for a household of your size, you will need to subject your monthly expenses to the means test.

    The means test is a formula that calculates disposable income. If you have too much spoils left over at the end of the month, there is a presumption that you should be filing for Chapter 13 instead of Chapter 7 bankruptcy.

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    Can I File Without A Lawyer

    It is possible to file for personal bankruptcy in Michigan without the need for a lawyer. There is no legal obligation when filing for bankruptcy. The process of Individuals filing for bankruptcy without an attorney is called filing pro se. While it is possible to file for both Chapter 7 and Chapter 13 without a lawyer, its not recommended.

    How Much Bankruptcy Costs And How To Pay For It

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    Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.

    Its a classic catch-22: Youre in rough financial shape and need to file for bankruptcy. But between filing fees and the cost of hiring the right bankruptcy attorney, you could end up paying hundreds or even thousands of dollars to do so.

    Heres what bankruptcy costs and how to pay for it.

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    Take Credit Counseling Course

    You have to take two mandatory credit counseling courses to complete your Chapter 7 bankruptcy. The Chapter 7 trustee may request the certificate of completion in the meeting of creditors. The first course is a pre-bankruptcy course, and the second is the pre-discharge course.

    If you are filing with an attorney, your attorney may have suggestions for both the credit counseling and debt education course. If not, you can see the list of approved credit counseling courses in Michigan.

    Take Bankruptcy Course 2

    The next step after providing all of your information to your Chapter 7 trustee when filing bankruptcy in Michigan is to go ahead and complete your second financial management course. Under Michigan bankruptcy laws, the certificate of completion for this course is due within 60 days from your 341 hearing date. We recommend doing this sooner rather than later so it does not get forgotten. This certification will come from the agency and will need to be directly filed with the court. Itâs best to bring the certificate with you to file on the day your 341 meeting is scheduled for. You will not need to provide the certificate to your Chapter 7 trustee. It will be with your court file.

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    Doesnt Filing For Bankruptcy Ruin My Reputation And My Life

    Not if it gets you out of debt. You might be able to run from creditors for a while, but eventually the stress of that overwhelms people. Bankruptcy lets you stop running and start over again. It may take a few years for you to get loans and obtain credit again, but at least youll have that opportunity. Bankruptcy is meant to give people who made financial mistakes a second chance. In todays turbulent economy, that is a good thing.

    Rebuild Your Credit After Filing Bankruptcy

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    Unfortunately, Chapter 7 bankruptcy can negatively impact your credit and Chapter 13 can negatively impact your credit. That said, you have an opportunity to rebuild your credit shortly after bankruptcy. To assist, you can use our free credit rebuilding portal designed to help you increase your credit score by 100 points in less than 6 months.

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    From Bankruptcy Filing To Eligibility Ruling

    On July 19, 2013, Ingham CountyCircuit Court Judge Rosemarie Aquilina ruled, using a typed statement with hand-written notes attached, that the bankruptcy filing by Detroit violated the Michigan constitution by impairing pension payments and ordered Snyder to withdraw the filing: Snyder has appealed the motion, and Aquilina indicated she was sending a copy of her ruling to President Obama. While under Article IX, Section 24, of the Michigan Constitution, neither the state nor any of its “political subdivisions” are permitted to default on the accrued financial benefits of their pension plans or retirement systems, federal law may allow bankruptcy judges to renegotiate pensions of municipalities in bankruptcy. Many consider public pension benefits of existing retirees “virtually untouchable” the clash between state constitutional protections of vested public pension rights and the general ability of the bankruptcy process to modify debt obligations has yet to be fully tested in any Chapter 9 proceeding.

    Chapter 7 Bankruptcy Vs Chapter 13 Bankruptcy

    There are two common types of bankruptcy you might consider as an individual consumer: Chapter 7 bankruptcy and Chapter 13 bankruptcy.

    With Chapter 7 bankruptcy, many of your assets are liquidated, and the proceeds are used to repay your creditors. After your creditors are paid and your eligible debts are discharged, youre no longer responsible for repaying your debts .

    Rather than having eligible debts completely discharged, Chapter 13 bankruptcy is more like an extended repayment plan. You develop a plan to repay your debts over a period of three to five years, giving you an opportunity to retain more of your assets than if you filed for Chapter 7 bankruptcy.

    Can all debts be eliminated in a Chapter 7 bankruptcy?

    While credit card debt and many other forms of debt can be eligible for discharge when you file Chapter 7, some are not. Examples of ineligible debts include alimony or child support, some taxes, certain student loans and more. If you have nondischargeable debt, youll be responsible for repaying it even if you file for Chapter 7 bankruptcy.

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    Is There An Income Limit For Chapter 7 Bankruptcy

    To automatically qualify for Chapter 7, your disposable income must be below the Chapter 7 income limit – specifically it needs to be below the median level for your state. That number varies from state-to-state. If your disposable income exceeds the median in your state, you still may be able to qualify through a means test that includes looking at your income and reasonable expenses to see if you can get that number under the median income for your state.

    Understand Alternatives To File Bankruptcy

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    There are many bankruptcy alternatives to consider. We will cover the two most common alternatives, but you can find more in our bankruptcy alternatives article. As a reference, filing Chapter 7 bankruptcy is often the least expensive and the shortest.

    Debt Settlement

    Debt settlement is also known as debt negotiation, debt relief, or a debt consolidation program . In debt settlement, a company or you will negotiate with your creditors for a lower amount. You can save money and avoid filing bankruptcy. You may also be exposed to lawsuits, so its important to understand which creditors are likely to sue. A debt settlement programs often last 2 – 5 years.

    Debt Management

    Debt management is also known as credit counseling. In debt management, a company will negotiate with your creditors for a lower percentage interest rate. You can save money on interest and avoid filing bankruptcy. Debt management can be more expensive than debt settlement and Chapter 13. Debt management programs often last 5 years.

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    How Do I Apply For Bankruptcy

    The unfortunate reality of bankruptcy is that it will cost some moneymore if you hire legal help, which you probably should . All filings have to go through U.S. bankruptcy courts, where the cost to file is $335 for Chapter 7 and $310 for Chapter 13. However, you can ask the court to either waive your fee or let you pay with monthly installments. You’ll also have to take debtor education courses if you file on your own.

    And that’s just the beginning. There’s a list of documents you’ll need to take care of, as well as the specific repayment proposal you need to submit for Chapter 13. That proposal gets reviewed by a court-appointed trustee, who contacts your creditors before approving your submission. Overall, neither filing is an easy process to handle on your own, and even minor mistakes on your end could be a setback for your case.

    So, whether you file for Chapter 7 or Chapter 13 bankruptcy, it’s typically a good idea to hire a lawyer to help you petition. A bankruptcy attorney’s price depends on the nature and complexity of your filing, with Chapter 13 filings on the pricier end, but the price tag doesn’t necessarily mean a lawyer is out of the question for you. Discuss payment plans with potential attorneys, check out local pro-bono lawyers and legal aid offices, or use an online tool like Upsolve to cover your bases when it comes to bankruptcy.

    Who Can File For Bankruptcy

    It is certainly possible to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy without an attorney. After all, there is no legal obligation for you to have one to file bankruptcy. But you should probably only file without an attorney if your filing a simple Chapter 7 case, as well explain below. In this article, well outline the steps you can take to file for bankruptcy without an attorney. Well also explain exactly how an attorney can help you throughout the bankruptcy process and whether it makes sense for you to file with or without one based on your situation.

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    How Much Is It To File Chapter 7 Bankruptcy In Michigan

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    Uncover A Few Critical Details When selecting A personal bankruptcy Attorney

    If you’re considering finding a las vegas bankruptcy laywer, you’ll want to be sure of a couple of things so you know that you earn the correct choice. All things considered, you shouldn’t depart your funds in the hands of simply anyone. Find out some specifics that you need to look out for in your company which addresses your own situation.

    You must first determine whether this kind of subject may be the only 1 dealt with through the legal professional. You want a expert, not really somebody that dabbles in a little bit of every thing. This means you need to look for any bankruptcy lawyer specifically, certainly not somebody who in addition deals a great deal along with divorce, criminal defense, or perhaps levy laws and regulations. You could be amazed how many law firms have a tendency to handle all sorts of instances. Even though it is nice to be able to find advice on several subject matter at merely a single organization, it is advisable to locate a expert because he or she can perform best wishes on your a bankruptcy proceeding circumstance, not merely an ok job in many instances for a similar particular person. You can find out this detail on the web as most lawful websites mention which in turn exercise locations the legal professionals are informed about.

    How Much Is It To File Chapter 7 Bankruptcy In Michigan

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