Filing Chapter 7 Bankruptcy
Detroit Chapter 7 Lawyer
Pursuing the idea of bankruptcy can sound like a scary proposition, but
it can be an extremely beneficial action that may change your financial
future for the best. Do not believe the misconception that by filing bankruptcy
you are admitting defeat. Chapter 7 bankruptcy can help to eliminate most
if not all of your debts and get you on the road towards recovery. Essentially
when filing, you are creating a clean slate that can
put an end to the stress, harassing creditor phone calls and additional debts stacking up. Once
the debt is gone, it is cleared away for good, allowing you the peace
of mind that you deserve.
Before filing as an individual, corporation or partnership for Chapter
7 bankruptcy, you
must take a
means test. This is a way of determining if your income falls above or below the
median, which will allow you to either pass or fail the test. By comparing
your wages against your debts, the test reveals if there is enough disposable
income to make payments towards the debts you owe. If you do have the
means to repay, you will not be eligible for Chapter 7 and will often look to
Chapter 13 bankruptcy as an alternative. Should you not have available funds to pay off your
debts, you may file Chapter 7 bankruptcy.
Additionally, if you have had a petition for bankruptcy dismissed within
the past 180 days, you must wait until those 180 days are over before
you can attempt to file again. Credit counseling must be done through
an approved agency prior to filing Chapter 7 bankruptcy and it must have
been completed within the past 180 days as well.
Will I lose everything by filing bankruptcy?
Fortunately there are various
bankruptcy exemptions for Chapter 7 that will allow you to keep certain possessions. Many individuals
are most worried about losing their home during bankruptcy, but can rest
easier knowing that there are homestead exemptions. In the State of Michigan,
the amount than an individual can count as exempt is any interest up to
$35,300 in their home or other property. For those 65 and older, the amount
allowed comes to $52,925. Couples who are married that are filing for
bankruptcy together are not able to both claim homestead exemptions according
to state laws.
Another major concern for many people is protecting their vehicle from
being taken or sold in order to pay off debts. According to Michigan motor
vehicle exemptions, any individual can protect up to $3,250 in car equity.
For those that are filing jointly as a married couple, they may both claim
exemptions around $3,000 on their individual cars or put both of their
$3,250 exemptions together towards one car.
Personal belongings such as clothing and jewelry, up to a certain particular
value, are allowed to be kept as well as appliances, household goods,
tools that are used for work, child support money, alimony, life insurance,
retirement plans and a few other benefits. A qualified Detroit Chapter
7 bankruptcy attorney can work closely with you to minimize the amount
of property lost during a Chapter 7 bankruptcy.
Over 33 Years of Combined Experience
Attentive and compassionate, the Detroit Chapter 7 bankruptcy lawyers at
the Law Offices of Marshall D. Schultz are willing to stand with you during
this difficult time. We understand where you are coming from and the urgency
of finding viable debt relief solutions so that you can be rid of the
financial stress once and for all. With experience assisting creditors,
debtors and Chapter 7 trustees, Attorney Schultz is dedicated to his clients.
Currently only serving consumer debtors, he seeks to provide timely and
affordable results for each of his clients.
handled over 10,000 consumer bankruptcy cases and achieved a positive ranking from Avvo®, a premier legal ranking
website, it is evident why so many people have entrusted their financial
future with our firm. We offer a
free case evaluation to help you with taking the initial steps towards debt relief and are
also available to speak with you during a free initial consultation. Whether
you prefer to talk to us over the phone or meet up in person, we offer
legal assistance at both of our offices located in Detroit and Southfield.