Things You Should Know About Filing For Bankruptcy In Michigan

Bankruptcy is often considered to be the ultimate form of debt relief, but it is not a cure-all and it can be quite complicated. Those who are considering this debt relief option in Michigan likely are wondering whether or not they qualify, and what they should expect in regards to the process.

Firstly, it\’s important to recognize that not all debts will be wiped out through this process. In Michigan, some debts will remain afterward, including taxes, criminal and traffic fines, back child support, most student loans and anything not specifically on the list of debts to be discharged.

In Michigan, those seeking bankruptcy must also complete a state-mandated credit counseling course within six months prior to the filing. This course requires debtors to contact their creditors to obtain a workable payment plan or seek a debt consolidation loan. After the documents are filed, taking a financial management course is also necessary.

It\’s important to understand the differences between the two bankruptcy types. Chapter 7, the discharging of debt while keeping a home or property not in default, and Chapter 13, a repayment plan that usually allows the debtor to keep a home, automobile and certain other property even though the loans for such properties are in default.

Michigan bankruptcy paperwork can be quite complicated. It includes a two page petition and a list of all the debts to be discharged and property to be excluded. Deeds or titles of property owned and verification of income, expenses and financial transactions for two years prior to filing are also required. Filing for Chapter 7 is $299, while Chapter 13 is $274.

Once the paperwork is filed, the harassing phone calls from creditors can be halted. In fact, creditors are required by law to cease contact once advised of the bankruptcy, but the court may not inform them for weeks. To stop the calls sooner, debtors should let their creditors know of the filing as soon as possible and supply a case number.

Bankruptcy proceedings consist of a short meeting (called a 341 meeting) with a bankruptcy trustee. The trustee may ask clarification questions regarding financial status and the debtor is sworn under oath to answer. The debtors\’ attorney and creditors may also be present.

Unless a debt or its discharge is disputed, bankruptcies don\’t go to court. Creditors have 60 days after the 341 meeting to challenge any debts included. If the bankruptcy is undisputed, the process is typically finished in three to six months.

Due to the complicated process of filing a Michigan bankruptcy, it is a good idea to enlist the help of a local attorney that specializes in bankruptcies. The right attorney can be an invaluable asset, protecting your property and your interests to the full extent of the law during what is, for many people, a difficult and emotional process.

If you need debt relief in the Detroit area, contact Michigan bankruptcy attorney A Better Way Bankruptcy. With nearly three decades of collective experience, their friendly, helpful and compassionate attorneys and professionals can help you obtain relief from debts, stop calls from creditors and get a fresh start. Powered by SEO 2.0 Services