Steps for Filing for a Chapter 7 Bankruptcy in Michigan:
The first step is to determine if a Michigan Chapter 7 Bankruptcy is the appropriate type of bankruptcy for you. A qualified bankruptcy attorney should review your financial information and determine if a Chapter 7 bankruptcy, if any, is best for your family's situation.
Bankruptcy laws allow you to "exempt" some of your property. This means that you will be able to keep some of your property and not use it to pay off debts. A qualified Michigan bankruptcy attorney should review the property you have listed on the schedules and determine the proper exemptions. The following are examples of typical Chapter 7 Bankruptcy exemptions: ?Approximately $30,000.00 under Michigan bankruptcy law for equity in a home ?Approximately $9,000.00 in household goods under Federal bankruptcy law ?Approximately $9,000.00 in cash under Federal exemption in certain cases.
After you have retained a law firm they will prepare the Chapter 7 Bankruptcy Petition. They should work with you to gather the necessary information to complete the petition. The petition can be prepared quickly, if you provide all the requested information promptly. The following is some of the information that must be listed on the petition:
?In Chapter 7, it is required that you list all your creditors on the petition even in if you want to continue to pay them, such as a mortgage company. Some debts may not be discharged. Examples of debts that are not discharged are child support, student loans under most circumstances, certain taxes, etc. You must list these debts on your petition even though they will not be discharged. ?Utilities should be listed as a debt if there is a delinquency. If you list a utility, you will be required to pay a deposit within 20 days after you file which is generally 1 ? times the highest monthly bill for that utility. You must also pay all your future utility bills. If your bill is current or the delinquency is small and easily paid up it is not necessary to list the utility since the security deposit may be greater than the bill. ?It is required that you list all of your property on the schedules. Failure to list property, which includes anything of value which you own or have an interest in, could result in denial of your discharge or criminal prosecution. Examples of property which must be listed are household goods, vehicles, houses or other real estate that you may have an interest in, any money owed to you, lawsuits pensions, IRAs, benefits, bank accounts, any financial account, stocks, bonds, child support, pensions, potential claims regarding any benefit or law suit, tax refunds, inheritances or property from a divorce to which you become entitled to within 6 months of filing, etc. Be careful to review your schedules to make sure that all of your property is listed. Exempt property (discussed above) must also be listed.
If you have a joint obligation with a spouse or co-signer, he or she will still be responsible for that debt unless he or she also files for bankruptcy.
You must arrive at some big decisions before you can file for bankruptcy and the most significant of these is whether to file for Chapter 13 bankruptcy or Chapter 7 bankruptcy. The most common of these two choices is Chapter 7 bankruptcy and before you resolve to select this alternative you need to learn a few facets about it so that you are positive it is the right option for you.
First of all, the thing you must know is that the decision of which chapter to file is not your option. After a specific and detailed documentation of your income and assets is given to the courts, then it is the court's decision as to which chapter you may file. In fact, with the current bankruptcy laws in place, there is even a chance that you will not be permitted to file for bankruptcy.
Also referred to as liquidation, and this chapter of bankruptcy is the standard choice for most people. This type of bankruptcy will eradicate your current debts, but you must remember that the bankruptcy court has the right to sell or liquidate a portion of your property as a means to pay off the debts that you owe to your creditors.
Likewise you must be aware that even with Chapter 7 Bankruptcy, there are particular types of financial obligations that may not be erased, so if your financial obligations consist of a great deal of this kind of debt, receiving approval to file is not going to aid you much in the least.
This choice is so common because generally the person owes so much money to debt holders that it is not feasible to file for bankruptcy and then expect the debt to be entirely forgotten. It is frequently the case that the individual will have to release a number of their assets such as their car and even their home so that the court can recover a portion of of the debt that is owed to creditors.
The procedure for filing for Chapter 7 bankruptcy can be very complicated but if you have done your research and have a general thought of what you need to do, any problems you encounter should be minimal. The first thing you need to do is closely examine your debt. Determine to the exact number how much money you owe and who your debt holders are. Secondly, you must study all the alternatives and determine there are no other alternatives open to you. For instance, could you get another job or save some money so as to avert going bankrupt? If the answer is no to this and other choices then your only alternative is to then file for bankruptcy. Bankruptcy should only be used as the last resort to solve your critical financial issues.
Now you must be certain that you are in fact entitled to file for Chapter 7 bankruptcy. Once you have worked this out and are eligible then you can start finishing the relevant paperwork and setting up a meeting so that you can learn all aspects you must know about the process and the next steps you need to take. You will need to likewise settle on any secured debts and file any motions or protests as needed.
The next stage is getting your discharge and the procedure is virtually complete. If you are not totally comfortable with dealing with this procedure alone then you might wish to find someone to provide you some assistance. You can find some well-qualified professionals who are very experienced in the bankruptcy process and who will determine you are doing it right and indeed it is the correct alternative for you.
Both John Steinberger & Maury Klein are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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