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Chapter 7 Bankruptcy in Michigan PDF Print

A Chapter 7 bankruptcy is a liquidation plan. While not all debts can be discharged (including, among others: tax liens, student loans, child support and other domestic support obligations), many of them can be. (It is worth noting that a discharge of debt will not remove a lien on a property.) Unlike a bankruptcy under Chapter 13, there is no maximum limit imposed on how much debt you may possess.

Under a Chapter 7 bankruptcy, a court-appointed trustee will sell off all your non-exempt property in order to pay off as many of your creditors as possible. While creditors do have the right to object to a discharge in court, once a debt has been discharged under Chapter 7 you no longer carry any liability for that debt. Chapter 7 bankruptcy is meant to give you a fresh start by discharging as many of your debts as possible.

How Filing for Chapter 7 Bankruptcy helps:

Under the federal Bankruptcy Code, filing a petition for bankruptcy will "automatically stay" harassing collector calls, most wage garnishments, and the majority of other collection actions. While not necessarily permanent, this stay is meant to grant you a reprieve from collection actions until your bankruptcy case is decided.

Am I Eligible to file for Chapter 7 Bankruptcy?:

If your income is higher than your state's median income, you may be subject to a "means test." This test is meant to ensure that you are not abusing the protections offered under a Chapter 7 bankruptcy. Due to this test, it is critical that you obtain the representation of an experienced, quality bankruptcy attorney to represent your interests throughout your Chapter 7 action. If, during the "means test", the court determines that you are being "presumptively abusive" your action will either be converted to a Chapter 13 bankruptcy (with your permission), or it will be dismissed.

Learn more about the Chapter 7 Bankruptcy process.

If you have questions about filing for bankruptcy in Michigan, experienced bankruptcy attorney Lander McLoyd can help you decide if a Chapter 7 bankruptcy is right for you. Don't wait to secure your financial future - contact Michigan bankruptcy attorney Lander McLoyd today.



 

 

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