Chapter 7

Chapter 7 Bankruptcy Attorney

For Midland, Sanford, and Mt. Pleasant, MI


 

The simplest and most common type of bankruptcy filed. There are several criteria used to determine if you qualify for Chapter 7 bankruptcy including your gross income (Means Test), assets, monthly budget, and previous bankruptcy filings. In a Chapter 7, if you own unexempt assets, the court-appointed trustee may liquidate those assets for the benefit of your creditors. In most cases, you will have enough exemptions to protect your assets so that nothing is liquidated.

A chapter 7 case is started by the filing of your Petition, Schedules, and Statement of Financial Affairs.  It is very important that you tell us about all of your assets, debts, income and expenses.  You will be signing the petition and schedules under penalties of perjury so it is very important to provide us with information that we request.

The filing of the bankruptcy will stop creditor harassment, garnishments, and any other “collection” activity.

You may decide that you want to continue paying certain debts such as a mortgage, auto loan, credit union debt.  Bankruptcy does not remove the lien from collateral like a house or car.  You will have the choice to keep the collateral and continue paying the debt, or surrendering the collateral and having the debt discharged.

Once your case is completed and you have received your discharge, creditors can never collect on a discharged debt again or contact you for payment of a discharged debt.  Please be aware there are certain types of debts that can not be discharged such as: student loans (with some exceptions), tax debts, domestic support obligations such as child support, debt obtained through fraud or false pretenses, and certain criminal fines and fees.

Filing Chapter 7


 

You will usually be able to keep all of your property, including your house and vehicle as long as you are current with your payments and able to continue to make these payments. In a Chapter 7 case, you can keep all property that the law says is “exempt” from creditors. In Michigan, the list of exempt property includes, among other things, a decent portion of the equity in your home, qualified retirement accounts, equity in your car, all Social Security benefits, and many other assets. To learn more, schedule an appointment with our bankruptcy attorney today!

Not Everyone is Elgible


 

Filing for Chapter 7, however, is not allowed for all persons seeking to file Bankruptcy. To determine if you are eligible, please contact our office to arrange a consultation on which type of bankruptcy is right for you. A Chapter 7 Bankruptcy can be completed in approximately 90 days but may take longer depending on your situation. Elmy Law, P.C. is proud to offer Chapter 7 and Chapter 13 bankruptcy to clients across Midland, Sanford, and Mt. Pleasant, MI.

Chapter 7

Why Choose Chapter 7 Over Chapter 13…


 

If you do not have a sufficient amount of income to over your basic, everyday expenses and therefore cannot afford to make the monthly payments toward your debt, you may want to consider Chapter 7.  Chapter 7 does not involve setting up a repayment plan.  It simply discharges your debt.
 
Call us today to schedule a FREE legal consultation. 

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Evening Appointments Available