This is a short entry on who should file chapter 7 bankruptcy in Michigan and why. Chapter 7 bankruptcy is unique in couple very significant ways and I’ll highlight those differences. When we here folks use the term “Fresh Start” they are talking about filing a chapter 7 bankruptcy 9 times out of 10. The State of Michigan has seen a rise in chapter 7 filings in 2010 for obvious reasons I won’t get into here. I have a growing group of people who ask me every week, “Should I file Chapter 7 Bankruptcy”? So here are some of the facts on chapter 7.
What are the Michigan Chapter 7 Bankruptcy Costs?
Chapter 7 bankruptcy costs in Michigan are broken up into filing fees, educational fees and attorneys fees. The filing fee is $299. The new law requires that you take a credit counseling course before you file bankruptcy and a debtor education course before the final discharge order can be entered. The cost for these 2 courses is about $100. The attorney fee varies from case to case depending on how complex your matters is and whether you want reaffirm any obligations or redeem any property like your car or jewelry.
Michigan Chapter 7 Bankruptcy Courts
(http://www.mieb.uscourts.gov)
Court Locations: Bay City, Detroit, Flint
Counties In the Eastern Michigan Bankruptcy District
Counties of Jurisdiction:Alcona, Alpena, Arenac, Bay, Cheboygan, Clare, Crawford, Genesee , Gladwin, Gratiot, Huron, Iosco, Isabella, Jackson, Lapeer, Lenawee, Livingston, Macomb, Midland, Monroe, Montgomery, Oakland, Ogemaw, Oscoda, Otsego, Presque Isle, Roscommon, Saginaw, Saint Clair, Sanilac, Shiawassee, Tuscola, Washtenaw, Wayne
Michigan Western District Bankruptcy Court
(http://www.miwb.uscourts.gov)
Court Locations: Grand Rapids, Kalamazoo, Lansing, Marquette, Traverse City
Counties in the Western District Bankruptcy Court
Counties of Jurisdiction:Alger, Allegan, Antrim, Baraga, Barry, Benzie, Berrien, Branch, Calhoun, Cass, Charlevoix, Chippewa, Clinton, Delta, Dickinson, Eaton, Emmet, Gogebic, Grand Traverse, Hillsdale, Houghton, Ingham, Ionia, Iron, Kalamazoo, Kalkaska, Kent, Keweenaw, Lake, Leelanau, Luce, Mackinac, Manistee, Marquette, Mason, Mecosta, Menominee, Missaukee, Montcalm, Muskegon, Newaygo, Oceana, Ontonagon, Osceola, Ottawa, Saint Joseph, Schoolcraft, Van Buren, Wexford
How Long Does the Chapter 7 Bankruptcy Process Take?
Filing chapter 7 bankruptcy in Michigan is a process that typically takes about 4 months. After your petition is filed, your 341 hearing (first meeting of creditors) is usually scheduled within 30 days. Your discharge is typically entered 90 days after your 341. So – from start to finish – you are looking at a 4 month process.
What does a Chapter 7 Bankruptcy Lawyer Do?
A good bankruptcy lawyer takes their role in a successful bankruptcy filing seriously. One of the main responsibilities a chapter 7 bankruptcy attorneys has is informing you of the process and helping to acquire all the necessary documentation and fulfill the requirements set forth by the Bankruptcy Code.
The pre-filing preparation process is rigorous and requires the disclosure of all of your assets and all of your liabilities. You have to provide copies of the last 6 months of your wage statements and income tax returns for the past 2 years. In addition, you need to prepare a monthly budget.
I have put together a check list of documents and other information that I need to prepare a successful Chapter 7 petition and schedules. We work through the list together and get everything organized so that you can answer any question posed to you by the Trustee or any other creditor.
How Does Chapter 7 Bankruptcy Affect My Credit Score?
Typically the clients I meet with have a credit score that is less than stellar to begin with. What actually happens most times is a jump in credit score upon your bankruptcy discharge, usually around 98 points. Granted you won’t be catipulted to a 750 plus but filing bankruptcy is the first step to rebuilding a solid credit score.
The First Step to Decide Whether Filing Bankruptcy is a Smart Option For You.
The first step, and one I encourage taking, is to schedule a confidential consultation with a qualified bankruptcy attorney. I recommend this step as the first step to take when considering filing for bankruptcy in Michigan for two reasons:
Number one it’s Free and chances are you’ve been listening to bad advice up until now.
Number two is because I see the positive affect a simple conversation about your personal situation has with the many clients who have sat at my desk with me. It’s a starting point, a new beginning, get in touch by filling out a a web form on this site or find my Phone Number listed at the top of the site. Better yet, learn more Right Now by visiting the Michigan Chapter 7 Page.
In Your Service.
Mike Shovan