Detroit Chapter 7 Bankruptcy Lawyers

Chapter 7 bankruptcy is the most common type of court filing used for consumer debtors in the U.S. It allows you to eliminate a portion or all of your unsecured debt through a liquidation process. While under the protection of the bankruptcy court, your creditors are barred from contacting you to make any further collection attempts. This frees you from the stress and anxiety of constant phone calls, letters, texts, and harassment. In the meantime, your Chapter 7 bankruptcy case can be processed through the courts to restore your financial control and give you a fresh start.

At Kostopoulos Bankruptcy Law, we take pride in giving new life to the individuals, couples, and business owners who have fallen into the depths of debt, often due to no fault of their own. When you have lost your job, lost your small business, or suffered a family health crisis leading to enormous medical bills, it can be depressing, frightening, and stressful. Turning to legal professionals who can help you overcome these situations can be an invaluable service. Our team is here to assist you in taking action toward achieving financial recovery.


Schedule a free case evaluation with a Detroit Chapter 7 bankruptcy attorney at Kostopoulos Bankruptcy Law by contacting us online or calling (866) 969-7482.


How Does Chapter 7 Bankruptcy Work?

In the liquidation process that constitutes a Chapter 7 bankruptcy filing, your “non-exempt” assets will be sold off by your bankruptcy trustee and the proceeds distributed to your creditors. Non-exempt assets are subject to liquidation or otherwise unprotected from the process by law. 

In the majority of cases, Chapter 7 debtors have little in the way of non-exempt assets. That is because state or federal law provides you with property and asset value that is protected from liquidation; these are called “exemptions.” These can range from the equity in your home and car to your household goods and appliances, tools of the trade, public benefits, retirement accounts, pensions, and more. 

Debts that can be discharged through Chapter 7 can include:

  • Medical and dental bills
  • Credit card balances
  • Personal loans
  • Past-due utility bills

Some unsecured debt cannot be discharged. These include child support, alimony, court-ordered fines, most student loans, and victim restitution. Our team can review your debt history to fully determine what debts you will be able to reduce or eliminate through your bankruptcy case. 

Chapter 7 Bankruptcy Eligibility

To file for this type of bankruptcy, you will have to qualify. Qualification is based on income limits. If your monthly income is less than the median income of a household of your size in Michigan, you will automatically qualify. If your income exceeds the median, you will need to take the “means test.” This test allows you to make certain deductions from your income that may allow you to qualify. Our Detroit Chapter 7 bankruptcy lawyers can determine your eligibility through the application of the means test. Those who fail to qualify still have the option of filing for a Chapter 13 bankruptcy. 

Get a Free Bankruptcy Evaluation Today

The decision to file for bankruptcy is a major step toward financial recovery and control. Our firm can help you decide if bankruptcy is right for you, whether you are eligible for a Chapter 7, and can provide all the information and guidance you need to move forward. With a Certified Bankruptcy Specialist on board, you can have confidence in the highly-qualified counsel we offer related to this crucial matter. 


Contact Kostopoulos Bankruptcy Law at (866) 969-7482 today.