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.