Chapter 7 Bankruptcy Solutions in Michigan

Achieve a Fresh Start with Our Legal Guidance

When dealing with any type of complex legal matter, it is always advisable that you rely on the advice of an experienced legal professional. While filing for bankruptcy may seem fairly cut and dry, it is important to understand that your financial stability could be on the line. For this reason, the Michigan chapter 7 bankruptcy lawyer at Hensel Law Office, PLLC encourages you to seek legal guidance as soon as possible.

My name is Thomas Hensel, and I have been practicing law since 1999, personally managing every single case for my clients. This means that you will never be passed off to a secretary, paralegal or associate attorney when you work with my firm. As a Madison Heights bankruptcy attorney, I will be by your side throughout every step of the bankruptcy process.

Understanding Dischargeable Debts in Chapter 7 Bankruptcy

Once your bankruptcy trustee has taken measures to liquidate non-exempt assets and repay creditors, the bankruptcy court will discharge any remaining debt. This includes credit card debt, medical debt, business debt, etc. It is important to understand that not all debt is dischargeable, however, as certain debts will always survive bankruptcy.

Eligibility Criteria for Filing Chapter 7 Bankruptcy

While Chapter 7 is the most widely used form of bankruptcy, certain measures have been taken to ensure that only those facing the direst of financial situations can actually file. You will be required to take a means test to determine whether or not you qualify.

Debt Requirements for Chapter 7 Filing

The means test will evaluate your income and expenses, deducting specific monthly expenses from your current monthly income. The figure that is left over will be deemed your "disposable income"—which is the monthly sum of money that you should, ideally, be able to contribute to repaying debt. The higher the number, the less likely it will be that you qualify.

Cost and Duration of Chapter 7 Bankruptcy Process

Unlike Chapter 13 bankruptcy, which is executed over three to five years, the Chapter 7 bankruptcy process can be completed in a matter of months.

More specifically, you could expect it to take 4-6 months. This includes:

• Participating in a pre-bankruptcy credit counseling course
• Filling out all of the necessary paperwork
• Filing your petition with the court and attending the "creditors meeting"

After all is said and done, you can expect to pay about $300 in filing and administrative fees—as well as a small fee for the credit counseling course. Once your bankruptcy has been resolved, however, you will be legally absolved of the obligation to repay most, if not all, of your debt.

Essential Information Required for Chapter 7 Filing

When filing for Chapter 7 bankruptcy, you will need to fill out a petition and numerous different forms. Once your paperwork has been completed, you will submit it to the bankruptcy court in your area—the purpose of which is to give the court a better idea of how you are faring financially.

Protection from Creditors After Filing Chapter 7

Once you have officially filed your bankruptcy petition with the court, a judge will issue an "automatic stay." This court order will immediately prohibit creditors from continuing their collection efforts—which also means that you cannot be subject to any further wage garnishments, repossessions or foreclosures. All efforts must be stopped until your bankruptcy case has been resolved, giving you the peace of mind that you need during this time.

If a creditor attempts to contact you, you should immediately inform them that you have initiated the bankruptcy process. If this behavior persists, however, let an attorney step in.

What to Expect During Your Bankruptcy Court Appearance

Typically, those who file under Chapter 7 will only need to appear in court once. One to two weeks after filing your petition, a "creditors meeting" will be scheduled.

During this court visit, you and your lawyer will meet with the bankruptcy trustee who has been assigned to your case and/or any of your creditors who wish to attend.

The bankruptcy trustee will then question you about:

• Why you are filing for bankruptcy
• Whether you have listed the accurate values of all property included in the petition
• Whether you have transferred money to relatives or friends before filing

Since they are acting on behalf of your creditors, they will want to ensure that your debts are repaid in the fullest amount possible.

Contact Us Today to Begin Your Bankruptcy Journey

If you are interested in scheduling a free bankruptcy consultation with me, call today for fast support. I am even available to meet in the evening or on the weekend, in addition to regular business hours. I am focused on making this experience as convenient and painless as possible for you. That being said, there is no reason why you should wait any longer to retain the professional assistance that you will need!