While certainly not a blanket cure for all financial difficulties, bankruptcy is sometimes unavoidable and can be the best choice in some situations. Those considering bankruptcy in Michigan likely want to know more about how to qualify and what goes into this often complicated process. Here are some facts everyone should know.
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.
Bankruptcy comes in two different forms: chapter 7, the discharging of debt while keeping a home or property not in default, and Chapter 13, a repayment plan that typically allows the debtor to keep a home, automobile and certain other property even if loans for such properties are in default.
Michigan bankruptcy filings require extensive and often complex paperwork, including 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 needed. The fee for Chapter 7 filings is $299, while Chapter 13 is $274.
Many people will be happy to know that once the paperwork is filed, harassing calls from creditors can be stopped. Creditors are required by law to cease contact once advised of the bankruptcy, but the court may not let them know for a number of weeks. To speed along this process, debtors should let creditors know of the filing right away and give them a case number.
The proceeding itself consists of a short meeting (called a 341 meeting) with a bankruptcy trustee. This individual may ask some questions in regards to financial status to clarify matters. The debtor is sworn under oath to answer. The debtors’ attorney and creditors can also attend this meeting.
Many will be relieved to know that bankruptcies don’t end up in court unless a debt or its discharge is disputed. Creditors have 60 days after the 341 meeting to challenge any debts included. If the bankruptcy is uncontested, the process is usually finalized in three to six months.
Since there are so many steps involved in filing a Michigan bankruptcy, it is recommended that those considering this debt relief option contact a local attorney that specializes in bankruptcies for further assistance. The right attorney can be an invaluable asset, protecting your property and your interests to the full extent of the law during an emotional and difficult time.
If you’re thinking about filing for bankruptcy 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 the fresh start you need. Powered by SEO 2.0 Services
