Let Our Lawyers Guide Your Bankruptcy
Bankruptcy may be the answer you have been looking for to regain financial control. Acclaim Legal Services has experienced bankruptcy attorneys who are available same day to speak to you over the phone or to meet with you in Detroit, Southfield, Warren, Dearborn, Ann Arbor or Flint. We offer same day legal protection and free consultations. Because the bankruptcy laws are complex, we specialize just in Chapter 7 and Chapter 13 bankruptcy cases.
Call today to find out if filing bankruptcy in Michigan is the right choice for you or schedule a free consultation.
There Are Many Reasons To File Bankruptcy For Debt Relief
Some of the reasons people seek debt relief by filing include job loss, unexpected medical illnesses, divorce, or business failure. Bankruptcy is available for individuals to obtain a fresh start and to move forward without being shackled by overwhelming debt. Consult with our team at USADebt to learn whether bankruptcy is the right choice for relief from your burden of debt.
Federal laws govern bankruptcy however, Michigans consumer and commercial laws may have an impact in certain bankruptcy issues. Most bankruptcies are either categorized as either a liquidation or reorganization bankruptcy. Almost any entity or person can file for bankruptcy from municipalities, businesses, farmers and individuals. Many of our clients who file for a liquidation bankruptcy are allowed to keep their property after their eligible debt is discharged in bankruptcy. There are strict limitations to these types of no-asset cases.
What Is The Bankruptcy Means Test In Michigan
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Written byAttorney Eva Bacevice.
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How Do I Keep My Property When Filing For Bankruptcy
Bankruptcy doesnt mean youll lose all the assets that you own. You can keep your property protected by an exemption orexempt property. There are state bankruptcy exemption laws that can help you save your assets. Michigan bankruptcy 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 doesnt cover the property, youll either lose it in Chapter 7 or have to pay for it in the Chapter 13 repayment plan.
How Much Does It Cost To File Chapter 7 Bankruptcy In Michigan
If youre looking to take advantage of the bankruptcy process, its important that you have a basic understanding of what goes into such an undertaking. Chapter 7 Bankruptcy Michigan Attorney Fees can be costly and vary depending on how much equity is in your home as well as the district court where your case will proceed.
Filing Chapter 7 bankruptcy can be a costly endeavor. The more complicated your case is, the higher you should expect to pay in attorney cost and other costs incurred during the filing process.
However, many factors may lead to an increase or decrease in these expenses, which will vary depending on your lawyers fee structures location and complexity.
When you file under Chapter 7, there are a variety of factors that can affect your fees. For example, if the case is considered relatively simple with no non-exempt assets, it will cost less than one, which is more complex and likely to result in litigation.
An attorney will handle all of the administrative issues in your case filing paperwork with precision and at just the right time. Your lawyer can also help you use bankruptcy exemptions to protect as much property from creditors. Should they decide to object or request a stay on collection attempts during this process? If either occurs, rest assured knowing that well answer their motions for relief so that you have complete peace of mind regarding your debt repayments in the future!
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Michigan Chapter 7 Bankruptcy
Michigan Chapter 7 bankruptcy is the most comprehensive debt forgiveness option. Once you are approved to file, all your unsecured debtscredit card balances, auto loans, mortgage payments, etc.are forgiven and cleared from your name.
Eligibility depends on whether or not you:
- Have the means to pay back your debts
- Filed forbankruptcy within the past eight years
- Lied to creditors about your debts
- Have disposable income
- Make more money than Michigan’s median income
Keep in mind, some debts cannot be forgiven. Bankruptcy will not forgive tax debt, student loans, or child support payments. By contacting an Okemos Chapter 7 attorney, you can gain a clearer picture of exactly what to expect following your bankruptcy.
Get help for your financial troubles. Callnow orcontact us online to schedule your initial consultation. Our firm also serves clients outside Michigan.
Debt Settlement Or Consolidation
You may be surprised by some creditors’ willingness to settle a debt for less than what you owe. If you are making minimum payments, there is little likelihood a creditor will lower your debt. That said, if you are not making minimum payments, a creditor is faced with the real possibility that they may not get their money back. In these scenarios, many creditors are willing to settle your debt in full for less than what you owe.
Debt settlement can be arranged by an attorney or debt company, though some individuals negotiate on their own. Not all creditors will agree to settle a debt. If they do, most creditors will request a lump payment to settle. Though this option can help avoid bankruptcy, it can still have longterm consequences. Debt settlement can still negatively affect your credit. Additionally, when creditors report what you owe in a settlement, this sometimes must be reported as income at tax time.
Consolidation is another option if you owe multiple debts, such as credit cards, mortgage, personal loans, medical debt, or other debt. Consolidation is offered by a financial institution, such as your bank. In a consolidation, a bank gives you a loan to pay off all your debts, consolidating your debt into one payment. This can help reduce the stress and anxiety that often comes with owing many debts. That said, even consolidation can have a long-term impact on your credit score.
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Faqs On Filing For Bankruptcy In Detroit Michigan
A state of diverse economy and majorly known as the center of the U.S. automotive industry, there is no wonder that the state witness a huge monetary transactions and a number of legal issues germinating from these exchanges. We mainly focus on the issue of bankruptcy in our following article. While in general, the filing process for bankruptcy is similar to that of other U.S. states. There are a few Michigan-specific information to be kept in mind depending on the Michigan Law.
As a resident of Michigan, where should I file for Bankruptcy in particular?
This entirely depends on which part of Michigan are you from. Michigan is divided federal judicial districts-Eastern and Western district the bankruptcy courts are similarly divided and the main courts for east and west districts are in Detroit and Grand Rapids respectively. You can file for Bankruptcy either from the district where you have lived for more than 180 days before filing bankruptcy or where you maintain a permanent residence though you have been living away temporarily.
What is the state median for Michigan and am I eligible for filing Bankruptcy under Chapter 7 Bankruptcy in Michigan ?
Are there any special exemptions under Michigan Bankruptcy Laws?
Which form should I fill up for filing Bankruptcy in Michigan?
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Can Anyone File For Chapter 7 Bankruptcy
The short answer to this question is, no. While Chapter 7 is the most widely used form of bankruptcy, certain measures have been taken to ensure that only those facing the direst of financial situations can actually file. That being said,you will berequired to take a means test todetermine whether or not you qualify. Themeans test will evaluate your income and expenses, deducting specific monthly expenses from your current monthly income. The figure that is left over will be deemed your “disposable income”which is the monthly sum of money that you should, ideally, be able to contribute to repaying debt. The higher the number, the less likely it will be that you qualify.
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S In A Michigan Bankruptcy
We all know that seeing the forest helps us recognize the trees, so it’s probably a good time to consider the significant steps you’ll take during your bankruptcy journey. Think of this checklist as a roadmap of sorts, but you can also use it to track your progress. The good news? You’ve already made headway on the first two items!
Michigan Means Test Calculator
In order to determine if you qualify to file a Michigan bankruptcy under Chapter 7 of the Bankruptcy Code, it is vital to make certain that you are using an appropriate Michigan Means Test calculator. You will find many online Means Test calculators but they might not all be current with the correct information. This makes it key to partner with a trusted resource like Upsolve, who keeps the Michigan Means Test calculator current to the day, every day. If you exceed the income limits and you need to complete the extended bankruptcy Means Test in Michigan, you want to be certain that you are relying on the most current information possible as this calculation can have a huge impact on your bankruptcy options. Beyond keeping the Means Test calculator up to date, Upsolve can also help you through the entire bankruptcy process and help ensure that you complete every step and are able to get to that desired discharge.
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What Is Chapter 7 Bankruptcy & How Do I File
Chapter 7 bankruptcy is a means to eliminate unsecured debts, surrender unwanted personal property and gain a fresh financial start. The process typically spans 4 5 months, although court protection is immediate once the case is filed. This means no more creditor calls, letters, collections or legal actions such as wage garnishment.
Here are the general steps for filing:
- Meet with a qualified bankruptcy attorney to ensure you eligible to file. The main qualifiers are:
- Your total household income over the previous 6-month time period. Investigation of your household income and expenses is known as a Means Test
- Equity or assets you possess, to ensure everything can be protected with the allowed exemptions
- Timing of a previous filing. You are eligible to file a bankruptcy every 8 years from the date of your previous filing. If it has not been 8 years, you still qualify to file a Chapter 13 bankruptcy to gain creditor protection and debt relief.
Will Filing Bankruptcy In Michigan Wipe Out All My Debts
A Chapter 7 bankruptcy will generally discharge your unsecured debts, 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 arent discharged through a Chapter 7 bankruptcy, including child support, alimony, student loans, and some tax debts.
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 discharged, the creditor may still have the right to foreclose on or repossess your property.
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 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 isnt protected by a bankruptcy exemption, and cramdown secured debts when the property is worth less than the amount owed.
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How Much Does It Cost To File Bankruptcy In Michigan
I recently danced around some ballpark costs and fees for a Chapter 7 bankruptcy. You can find that on our blog. You can also find the courts filing fees on their website. There are essentially three costs to filing Michigan bankruptcy cases with the help of a lawyer:
Will I Lose My Property
* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.
* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions
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Michigan Bankruptcy Lawyer Cost
With Michiganâs bustling bankruptcy practice you can find quite a few attorneys who specialize entirely in bankruptcy law. It is common practice in Michigan for bankruptcy attorneys to offer a free initial consultation. Generally, at the end of that initial consultation the attorney you meet with will discuss their costs for filing your Chapter 7 in Michigan. The cost of a Michigan bankruptcy lawyer for Chapter 7 starts around $1,000 and can go up higher depending on the complexity of your case. You can find out more specifics about attorney fees in Michigan.
Attorney Cost Estimate: $1,100 â $1,250.
Bruce Law Firm Offers A Free Consultation With A Bankruptcy Lawyer To Discuss You Case
An experienced bankruptcy lawyer can answer the question, How much does it cost to file bankruptcy in Michigan?. If you are ready to take the next step in your bankruptcy case, we invite you for a free consultation. We know that legal fees can be intimidating, and its hard to predict what they will cost without more information.
The good news is we offer a free consultation! You will have an opportunity at this meeting with a bankruptcy lawyer. Not only to get answers about pricing but also to learn how best to move forward on your case. This can be done without breaking the bank.
A Bankruptcy Attorney fee will mainly depend on the complexity of your case. Complex cases, such as those involving business or real estate assets, may require more time and effort than other types, so they are priced accordinglybut every client is different! We offer a free bankruptcy consultation to provide the legal advice you need.
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Reorganization Repay What You Can Afford
Chapter 13 forces creditors to work with you and allows you to repay what you can afford, not what the creditor demands.
Chapter 13 allows you to stop foreclosure, save your home, and can eliminate second mortgages on homes that are underwater. Chapter 13 gives you up to 5 years to catch up on mortgage arrearages and past-due property taxes. Chapter 13 gives you room to breathe and catch up at a reasonable pace not immediately like the lender wants.
We restructure your debt by paying creditors as little as 0% of the debt owed, and we can often reduce secured car and furniture loan payments. Chapter 13 will stop repossession of vehicles and garnishment of wages. We can also seek loan modifications to reduce your mortgage payment during the process.
Chapter 13 bankruptcy allows you to battle the big banks and win. The playing field is evened with Chapter 13, giving you an opportunity to get back on your feet financially.
Secured Vs Unsecured Debt
If you are thinking about filing for bankruptcy, it is important to understand that your debts are generally divided between secured and unsecured debt.
When you have unsecured debt, a creditor has no right to seize any of your property for nonpayment. This is the debt that is most likely to be eliminated in bankruptcy. The most common type of unsecured debt is credit card debt, but medical bills and court judgments also qualify. Some unsecured debt, like child support obligations, must be repaid in full and cannot be discharged in Chapter 7.
Your debt to a creditor is secured when it has the right to repossess your property if you don’t pay. Home mortgages, car loans, and property liens are the most common types of secured debt.
When you choose to file Chapter 7 bankruptcy, much of your unsecured debt will be eliminated. However, the creditors who hold secured debt will still have the option of seizing your property for failure to pay. If you are filing Chapter 7 bankruptcy and want to keep property used to secure a debt, you usually have three options:
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Michigan Credit Counseling And Debtor Education
According to US law, all individuals who file for bankruptcy must first obtain credit counseling. After they file for bankruptcy, they must then obtain debtor education. Beware of scam businesses that offer these services or who promise cheap, flat rate bankruptcy filing. The government has a list of all approved and licensed credit counseling agencies. For information about Michigan credit repair scams and reputable organizations, visit: