Kostopoulos Bankruptcy Law

Tag: What assets do you lose in chapter 7?

How Do You File for Bankruptcy in Michigan?

Posted on by Kostopoulos Bankruptcy Law

Filing for bankruptcy in Michigan might feel overwhelming, but it’s a structured process designed to help you regain financial stability.

Here is a short Answer on How to File Bankruptcy in Michigan.

To file bankruptcy in Michigan, complete credit counseling, pass the means test (for Chapter 7), and file a petition with the bankruptcy court. Submit required financial documents, attend a 341 meeting with creditors, and complete a debtor education course. Eligible debts are discharged after court approval.

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FAQs About Filing for Bankruptcy in Michigan

Can I file for bankruptcy without an attorney?
Yes, but hiring an attorney is highly recommended to avoid costly mistakes and ensure a smoother process.
How much does it cost to file for bankruptcy in Michigan?
Chapter 7 costs $338, and Chapter 13 costs $313. Fee waivers are available for low-income filers.
How long does the bankruptcy process take?
Chapter 7 takes 3–6 months, while Chapter 13 involves a repayment plan lasting 3–5 years.
Will I lose all my property in bankruptcy?
No. Michigan's exemptions allow you to protect essential assets, such as your home, vehicle, and personal belongings.
Can filing for bankruptcy stop foreclosure or wage garnishment?
Yes, the automatic stay halts foreclosure proceedings and garnishments immediately upon filing.

What Are the Differences Between Chapter 7 vs. Chapter 13 in Michigan?

Posted on by Kostopoulos Bankruptcy Law

If you’re considering bankruptcy, choosing between Chapter 7 and Chapter 13 is a critical decision. You might be wondering: What are the differences between Chapter 7 vs. Chapter 13 in Michigan?

The biggest difference is that Chapter 7 eliminates unsecured debts through liquidation, while Chapter 13 allows you to reorganize your debts into a structured repayment plan.

  • Chapter 7: Discharges unsecured debts (credit cards, medical bills, personal loans) but may require selling non-exempt assets.
  • Chapter 13: Lets you keep your property while making structured payments over 3–5 years to catch up on secured debts like a mortgage or car loan.

With decades of experience assisting Michigan residents through bankruptcy, I’ve helped countless individuals determine which option best suits their financial situation. Let’s break down the key differences and eligibility requirements for both Chapter 7 and Chapter 13 in Michigan.

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FAQs About Chapter 7 vs. Chapter 13 in Michigan

What is the main difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 eliminates unsecured debt by liquidating non-exempt assets, while Chapter 13 reorganizes debts into a repayment plan and allows you to keep your assets.
Which bankruptcy chapter is faster to complete?
Chapter 7 is quicker, generally taking 4–6 months to complete, whereas Chapter 13 extends over a period of 3–5 years.
Can Chapter 13 bankruptcy stop foreclosure?
Yes. Chapter 13 allows you to catch up on mortgage payments and prevent foreclosure through a repayment plan.
Do I need regular income to file for Chapter 7?
No. Chapter 7 does not require regular income but does require passing the means test.
Can I discharge taxes through Chapter 13?
Yes. Chapter 13 can help discharge certain taxes that are not eliminated in Chapter 7.
What happens to secured debts in Chapter 7 vs. Chapter 13?
In Chapter 7, you must stay current on secured debts to keep property, while Chapter 13 lets you catch up on arrears over time.
How can an attorney help me choose the right bankruptcy chapter?
An attorney evaluates your financial situation, explains the benefits of each chapter, and ensures you meet eligibility requirements.

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