Filing for bankruptcy is stressful for any person or corporate entity; if you’re planning on filing for Michigan bankruptcy, you’ll need to know all the facts about this process before you make a final decision. Michigan bankruptcy filings must adhere to all related state guidelines, and specific exemptions are permitted under state law. While the law for Michigan bankruptcy is quite complex and may require the advice of a good attorney, there are some ways to learn more about the process from the comfort and privacy of your own home.
According to the 2005 Bankruptcy Act, each debtor who is preparing to file for Michigan bankruptcy must sign up for credit counseling that lasts for half a year. As you can see, you cannot really file for Michigan bankruptcy on the spur of the moment. It’s important to be aware of this credit counseling rule so you can plan your Michigan bankruptcy in advance. For six months, you’ll receive credit counseling that is meant to clean up your affairs, and to try and save you from actually filing for Michigan bankruptcy. After your credit counseling is complete, you must make a final decision about filing for bankruptcy. If do file for Michigan bankruptcy, you’ll be ready for the next step, which includes a financial management course. In a nutshell, you must wind through a labyrinth of red tape before you’re ready to file, and you must also pass a “means test” that determines whether or not you are eligible to file for bankruptcy Michigan.
A Michigan Bankruptcy Attorney Is an Excellent Resource during this Time
When you’re proceeding with a Michigan bankruptcy, you’ll need to prove to the courts that you are really unable to meet your financial obligations. Having a Michigan bankruptcy attorney at your side during this time is an important way to ensure that your bankruptcy goes through the way that it should. A Michigan bankruptcy attorney will be able to guide you through the process and protect your interests in court. Depending on your level of income for six months prior to filing for Michigan bankruptcy, a Michigan bankruptcy attorney will let you know whether you should file for Chapter 7 or Chapter 13 bankruptcy. Lower incomes will usually be Chapter & bankruptcies, while higher incomes will be Chapter 13 bankruptcies. However, there are plenty of intricacies in Michigan bankruptcy laws, and it’s important to get legal advice from a reputable, licensed Michigan bankruptcy attorney. You can find a lawyer through the local bar association.
Facts about Chapter 7 Bankruptcy Michigan
If your median income before filing for bankruptcy is under the Michigan State median, you are probably a candidate for Chapter 7 bankruptcy Michigan. However, there are some loopholes here; for example, if your income was higher, but you will not be able to pay out 6k or more to debtors over the next sixty months, you may still be able to file for Chapter 7 bankruptcy Michigan. People who are able to pay more than 6k over five years will likely be forced to avoid Chapter 7 bankruptcy Michigan; instead, they will file under Chapter 13 bankruptcy Michigan.
As a rule of thumb, you must be able to pay one hundred dollars per month for 60 months to qualify for Chapter 7. A Michigan bankruptcy attorney will be able to steer you through this rather long-winded process and give you the expert legal advice that you need. Without an attorney’s services, it may be tough to understand the details related to your own bankruptcy filing.
Facts about Chapter 13 Bankruptcy Michigan
As we discussed above, Chapter 13 bankruptcy is for people who can afford to pay more, or who have more median income in the six months before filing for bankruptcy. This type of Chapter 13 bankruptcy Michigan is for people who want to protect special assets, such as private residences, that may not be covered under bankruptcy exemptions. In other words, if you don’t want to lose your house during the whole Michigan bankruptcy filing process, Chapter 13 may be your best option.
This type of bankruptcy will require a long-term plan for paying down as many debts as possible; usually, three to five years of payments will be required. Therefore, Chapter 13 bankruptcy Michigan is usually filed by those who are employed or have some other means of generating income on a bi-weekly or monthly basis.
More Bankruptcy Michigan Information
To get organized before you file for bankruptcy Michigan, you should spend some time organizing your financial records and related information. Before approaching a lawyer or entering credit counseling, you should have specific records detailing your assets, debts, and monthly living expenses. To be on the safe side, gather all tax returns as well, as the courts will likely be interested in this sort of information. Paperwork for property and residences that you own should also be close at hand as you begin the bankruptcy Michigan process.
There are some exceptions permitted to people who file for bankruptcy under Michigan bankruptcy laws; for example, you may be able to hang on to a car or home if you meet the exception stipulations. Your equity is the deciding factor when it comes to Michigan bankruptcy exceptions. What you owe on car loans or mortgages, versus what you owe to the bank or creditor will determine your equity. If you don’t meet equity and exception guidelines, you may be forced to liquidate assets in order to repay debts.
As you can see, there is lot to think about when it comes to Michigan bankruptcy; the best way to proceed is to study state guidelines for bankruptcy, and then learn the specific “fine print” details as best you can. The importance of solid legal advice at this crucial time cannot be underestimated. Never take anything for granted when it comes to bankruptcy Michigan; it is a long, emotionally draining process that must be taken one step at a time. Before committing to filing for Michigan bankruptcy, talk to an attorney in your home state.
