Chapter 7 Bankruptcy: Exempt And Non
For many individuals experiencing financial hardship, bankruptcy is the best option to get back on the road to recovery. Many people consider bankruptcy a last resort and dont fully understand how bankruptcy can help their situation. Some may believe that bankruptcy allows you a completely fresh start others may think that they will lose all of their assets if they file for bankruptcy. Neither in fact is true.
Bankruptcy is a way to help an individual get back on firm financial ground, and in most cases, they keep all of their property. Bankruptcy protects some individuals property with laws known as exemptions. In Chapter 7 bankruptcy, any property that is not protected with these exemptions must be turned over to the trustee, so it can be liquidated and the proceeds dispersed to creditors. The remaining debts may be discharged.
In Michigan, an individual filing for Chapter 7 bankruptcy can elect to use either state or federal exemptions to protect their assets. Each system of exemptions lays out certain items that may be protected from liquidation in a Chapter 7 bankruptcy. The individual generally chooses either state or federal exemptions depending on which system will offer the best protection of assets.
Complete The Bankruptcy Forms
The bankruptcy forms include at least 23 separate forms, totaling roughly 70 pages. The bankruptcy forms ask you about everything you make, spend, own, and owe. Youâll also include some bankruptcy basics, like what type of bankruptcy youâre filing under and whether a bankruptcy lawyer is helping you.
If you hire a lawyer, they will complete the forms for you based on the information you submit to their office. If you can’t afford to hire a lawyer but don’t feel comfortable completing the forms on your own, see if you’re eligible to use Upsolve’s free online bankruptcy service or schedule an appointment with a legal aid provider in your area.
Before You File Chapter 7 Or Chapter 13 In Michigan
If and when you decide that filing for bankruptcy is the best option, here are some information to keep in mind before filing in the state of Michigan:
DO Continue making payments on vehicles you intend to keep.
DONT Borrow or withdraw from your 401K, IRA, or ERISA qualified savings and retirement plans to pay bills. If you do, you may be liable for penalties and taxes that are not protected by the bankruptcy filing.
DO Give friendly creditors a security interest in non-exempt property. If you have to borrow money from a friend or relative you could give that creditor a security interest in the property which you own. This will possibly make it less likely that a trustee will take the property.
DONT Borrow money on your home to pay unsecured bills, such as credit card, utility, or medical bills.
DO Reduce the amount withheld from your pay for taxes.
DONT Pay $600 or more back to relatives or business associates from whom you have borrowed money.
DONT Put property you own into someone elses name to avoid it being taken by creditors or the trustee. This is considered fraud.
You May Like: If You File Bankruptcy Can You Rent An Apartment
Youll Meet Income Qualifications If You Pass The Means Test The First Step Is Determining Whether Your Household Income Is Lower Than The Median Income Of Your State
How to file bankruptcy chapter 7 yourself in ny. However, much depends upon the specific details of your case and whether you hold any assets or no. New court decisions come out every day, from bankruptcy courts, federal district courts, bankruptcy appellate panels , federal circuit courts of appeal, and even the u.s. Chapter 7 asset case timeline.
Some of the bills you must pay include a petition filing , court fees and attorney fees . This 21st edition of how to file for chapter 7 bankruptcy also incorporates the many interpretations of the law handed down by the nations bankruptcy courts. A family will often choose to file either chapter 7 or chapter 13 depending on their circumstances, and in most cases, a judge will determine what type of ny bankruptcy they can apply for.
Before you can file chapter 7 bankruptcy in nevada, you have to take a credit counseling course. Application to have the chapter 7 filing fee waived and schedules i and j for the courts approval. The court does not accept cash or personal checks.
How to file chapter 7 bankruptcy in nyc. The net proceeds of the liquidation are then distributed to your creditors with a commission taken by the. In bankruptcy, the means test determines whether you meet the qualification requirements of a particular chapter.
Forms you need to file in chapter 7 bankruptcy. Your case may be dismissed if you do not file the required documents on time. Qualifying for bankruptcy in new yorkmeans testing.
Pin on To watch
Lansing Debt Relief & Bankruptcy Services
Filing for bankruptcy is a very personal decision. Some people find it helpful to file a bankruptcy case when they cannot pay their bills and do not anticipate having the financial ability to pay their bills in the future. Our Lansing, Michigan, Bankruptcy Law Firm will provide you with information to help you decide whether bankruptcy is right for you.
Debt Relief Legal Clinic has specialized in representing debtors rights since 1980. Our Lansing Bankruptcy Attorneys have filed thousands of consumer bankruptcy cases, including those under Chapter 13 and Chapter 7 .
Most people who think they may not qualify for bankruptcy, actually do. The changes in the bankruptcy laws only made it more time consuming to file, not impossible. Our bankruptcy attorneys will analyze your situation and give an opinion of what type of bankruptcy you qualify for. You may receive this analysis by scheduling a case evaluation. Still unsure about bankruptcy and have more questions? Our bankruptcy lawyers have listed and answered the most Frequently Asked Questions regarding bankruptcy below:
Our Michigan bankruptcy attorney, Kristen L. Krol, has 20 years of experience in analyzing and proposing solutions to individual debt problems. DRLC is a debt relief agency. We help people file for bankruptcy relief under the United States Bankruptcy Code. Call us to set up your initial consultation at 517-321-6804.
Don’t Miss: After Filing Bankruptcy When Can I Buy A Car
Will Filing Bankruptcy In Michigan Erase My Debts
Bankruptcy wipes out many bills, like , overdue utility payments, medical bills, personal loans, and more. You can even get rid of a mortgage or car payment if you’re willing to give up the house or car that secures the debt.
But you can’t discharge all debts. Nondischargeable debts, like domestic support arrearages and recent tax debt, won’t go away in bankruptcy, and student loans aren’t easy to wipe out . You’ll want to be sure that bankruptcy will discharge enough bills to make it worth your while.
How Much Will It Cost & How Long Will It Take
UnlikeChapter 13 bankruptcy, which is executed over three to five years, the Chapter 7 bankruptcy process can be completed in a matter of months.
More specifically, you could expect it to take 4-6 months. This includes:
- Participating in a pre-bankruptcy credit counseling course
- Filling out all of the necessary paperwork
- Filing your petition with the court and attending the creditors meeting
After all is said and done, you can expect to pay about $300 in filing and administrative feesas well as a small fee for the course. Once your bankruptcy has been resolved, however, you will be legally absolved of the obligation to repay most, if not all, of your debt.
Read Also: File Bankruptcy In Va
Western District Of Michigan Requirements
The Western District of Michigan is divided into five divisions: Grand Rapids, Marquette, Kalamazoo, Lansing and Traverse City. Here, again, you can contact the court clerk to determine which division you will need to file in. The Western District also requires specific local forms in addition to the federal forms, including a separate Schedule C for a joint case, the Mailing Matrix, and an Asset Protection Report.
When To File Chapter 7 Bankruptcy
There are several warning signs that you should be considering Chapter 7 bankruptcy. Five strong signs that indicate filing for Chapter 7 may be the right solution include:
Don’t Miss: Average Interest Rate Car Loan After Chapter 7
Mail Documents To Your Trustee
The Chapter 7 trustee is an official appointed by the court to oversee your case and liquidate, or sell, nonexempt property for the benefit of your creditors. Not all types of bankruptcy require the involvement of a bankruptcy trustee, but both Chapter 7 and Chapter 13 cases have one.
Pay attention to mail you receive from the trustee after filing your case. The trustee will send you a letter asking you to mail them certain financial documents, like tax returns, pay stubs, and bank statements. If you donât send the trustee the requested documents following the instructions provided in their letter, you may not get a discharge of your debts.
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.
Read Also: Can I Get A Title Loan While In Chapter 13
Who Can Apply For Bankruptcy
Michigan bankruptcy laws dont require debtors to have a minimum debt to be eligible to apply for bankruptcy, meaning anyone can apply. We are here to help guide you through it.
Whether you should apply for bankruptcy depends on the details of your individual case as well as:
- Whether you can repay your debts without filing for bankruptcy
- If your creditors are willing to work out a deal with you
- Whether filing for bankruptcy in Michigan will clear your debt
How To File Bankruptcy In Michigan
Bankruptcy is a complicated process. An experienced lawyer can give you a peace of mind.
Knowing how to file bankruptcy in Michigan is a common question among those looking for debt relief. According to statistics released by the Administrative Office of the U.S. Courts, the more than 772,646 bankruptcy filings occurred in 2019. While filing for bankruptcy is an important decision to consider, know that it is a common practice.
The first step in understanding how to file bankruptcy in Michigan is to meet with a qualified bankruptcy attorney to determine which program best resolves your financial situation. An attorney that specializes in bankruptcy law and have the experience to evaluate your circumstances and advise you on:
The type of bankruptcy that will help you to accomplish your long-term financial goals
Your role in the process and necessary documentation to begin the process
Chapter 7 bankruptcy is a very effective tool for eliminating credit card debt, medical debt and most other unsecured debt. But you can only use it once every 8 years.
A Helping Hand
Schedule a free consultation with Acclaim Legal Service to discuss your questions with one of our qualified attorneys.
You May Like: Nortel Epiq
Using A Power Of Attorney Document
Once you have power of attorney, you can sign documents on the principal’s behalf.
1. Bring documentation that identifies you as having POA.
Whenever you sign something for the principal, bring a copy of your power of attorney document with you. The principal can file the power of attorney document with the appropriate institutions, but it’s good practice to bring the document with you on these occasions. You should also bring a photo ID.
2. Sign using the correct procedure.
Sign the principal’s name in signature form first to eliminate any confusion and make it clear that the transaction involves the principal. After you sign the principal’s name, write “by” followed by your own name. Follow that with a word or phrase that shows your authority to sign, such as “power of attorney” or “attorney-in-fact.”
Having power of attorney means that you can make important decisionsoften financial or health carefor someone else. A durable power of attorney remains in effect regardless of whether the principal becomes unable to make their own decisions. Principals draft health care powers of attorney to grant decision-making authority to people they trust to make health care decisions for them when they no longer can. Powers of attorney carry significant responsibility both the principal and the agent must follow the correct procedures to be sure the document is valid.
Ready to appoint a power of attorney?
Chapter 7 Bankruptcy Filing Fee: $338
As you may know, the filing fees are fixed for a Chapter 7 bankruptcy case at $338.00. Often, it is possible not to pay your filing fees upfront and make payments directly to the United States Bankruptcy Court in installment payments after filing. The $338 Chapter 7 Bankruptcy filing fee is broke down as follows:
Chapter 7 Total Filing Fees: $338
$245 Initial filing fee
$78 Administrative fee
$15 Trustee fee.
If you are reopening a Chapter 7 bankruptcy, your initial fees will be $260. There is no additional bankruptcy fees charge for filing to convert from Chapter 13.
You May Like: How Many Bankruptcies Has Donald Trump Filed
Why You Should Come Talk To Us
Detroits Eastern Market | credit: www.davechristiansen.com
Bankruptcy is not a decision to be made lightly. Ive oversimplified the process so far to give you an idea of where to start and where to go for more information. Making a mistake on your bankruptcy schedules, petition, and forms could be far worse than your current financial situation.
Dont risk it. Come in for a free consultation so that you can learn what to do/not to do before during and after bankruptcy. Well explain how the whole process works and help you decide if bankruptcy is the right choice for you.
Whatever you do, please dont avoid talking to an attorney because you think you cant afford it. We offer free consultation as well as easy payment plans. You also may be surprised to hear that we often recover funds for our clients that have recently been garnished from their paycheck or bank account.
How To File Chapter 7 Bankruptcy
The most important factor in filing Chapter 7 bankruptcy is finding an experienced bankruptcy attorney. Once you decide on an attorney, you can refer creditors to your lawyers office. Filing the petition will trigger an automatic stay, which means creditors cant pursue lawsuits, garnish your wages or contact you about your debts. Heres a potential timetable:
If youre qualified, it will take 4-6 months to complete the bankruptcy process.
Here are the steps you must take when filing for bankruptcy:
Also Check: Chapter 13 And Renting An Apartment
Go To Court To File Your Bankruptcy Forms
Once you enter the doors of your local courthouse, you will be greeted by security guards, who will ask you to pass through a metal detector. Once you pass security, you will go to the clerkâs office and tell the clerk that youâre there to file for bankruptcy. They will take your bankruptcy forms and your filing fee .
Do not submit your bank statements or tax returns to the court. These documents go to the trustee after the case is filed. Check out Step 7 below for more info on that.
While you wait, the clerk will process your case by scanning your forms and uploading them to the courtâs online filing system. This usually takes no more than 15 minutes.
Once done, the clerk will call you back to the front desk and give you:
Your bankruptcy case number
The name of your bankruptcy trustee
The date, time, and location of your meeting with your trustee
At this point, your case has been filed! Congrats! The automatic stay now protects you from all debt collectors. But youâre not home yet – there are other steps you need to complete to get a fresh start under Chapter 7 of the Bankruptcy Code!
Determine Whether To Hire An Attorney To File Bankruptcy
Once you understand the cost, you can now determine whether to hire an attorney to file bankruptcy. Most attorneys will send you a retainer agreement that will outline the terms of the engagement. You will most likely need to submit information like pay stubs and tax returns for them to file the bankruptcy petition.
You may want to be aware of these 5 things when hiring a bankruptcy attorney. Also, you should consider whether you need to hire a bankruptcy lawyer by reviewing the pros and cons of hiring an attor.ey
Read Also: Chapter 7 Bankruptcy Virginia Cost