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What happens to my credit rating if I file for bankruptcy in Michigan?

If you are thinking about filing for bankruptcy in Michigan, there is a good chance that your credit rating is already bad and getting worse. The only way to stop the slide from bad to worse is to file for bankruptcy. Once you file for bankruptcy, your credit report is wiped clean and reset. And even though your bankruptcy is reported for 10 years, late payments, unpaid debts and high balances are removed. Instead of the derogatory remarks, these accounts will show “included in Chapter 7 bankruptcy” or “included in Chapter 13 wage earner plan.” This notation is not as harmful as the derogatory comments. In addition to getting a clean slate, your debt-to-income ratio is reduced and your credit score will increase. Within 3…

Can I exclude a “credit card” from my creditor schedule when I file for bankruptcy in Michigan?

Under the bankruptcy law, you are required under penalty of perjury to list all of your debts. If you fail to list all of your creditors and the related debts, your case can get dismissed. Here is the solution: If you owe less than $600 on the card, you are allowed to pay it off prior to your filing and avoid listing the debt or the creditor – you don’t owe them any money so you don’t have to list them. But, once you file chances are good that the credit card company will cancel the account anyway. With this in mind, it doesn’t make a lot of sense to use your scarce money to pay off that card. In any event, after your case…

If I file for bankruptcy in Michigan, do I have to appear in Court?

If you file for bankruptcy in Michigan, you probably will never enter a court room. The overwhelming majority of bankruptcy filers never enter the court room.  Your bankruptcy case is filed with the US Bankruptcy Court but the case is reviewed by a Trustee that is assigned to your case. You will have to appear for what is know as a 341 hearing or the first meeting of your creditors. The Trustee conducts this hearing and it is tape recorded. You are sworn in and then asked some really basic questions: name, address, birthdate, last 4 number of your SSN. Then the Trustee reviews your petitition and schedules and asks you if the information that you provided is complete and accurate. If one of your…

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