Articles Posted in Bankruptcy

Even though bankruptcy discharges your personal obligation to pay a secured debt, the lien on your property will remain.

Any amount of a debt that is secured by property, will remain. Any amount that is not secured by the property, will be discharged. For example, if you your purchased a tv on credit, if you default on your payment the creditor has the right to the collateral (the tv). If the value of the tv is less than the amount you owe, the remaining amount will be discharged.

For more information regarding liens and Chapter 7 bankruptcy, contact our office at (586) 264-3756.

Do I qualify for Chapter 7 Bankruptcy? One of the main factors in determining whether or not an individual qualifies for a Chapter 7 bankruptcy, is whether your household income is under the median family income amount.

For cases filed on or after November 1, 2017 in Michigan, the following are the median incomes by family size:

1 earner: $48,626

1.) Q: What is the Chapter 7 bankruptcy process?

A: If you are considering bankruptcy, we would ask you numerous questions about your income, assets, expenses, and debts. We would run your credit report to determine the amount you owe each creditor. If we find that your monthly expenses exceed your income, and your assets are within the bankruptcy exemptions, we would assist you in filing your bankruptcy petition. Once the petition is filed, a creditor’s meeting is held approximately 4-6 weeks after filing. After the creditor’s meeting is held, the Trustee has sixty (60) days to determine whether or not to discharge your debt. If the Trustee discharges your debt, then you will not be responsible for any of the debt listed in your bankruptcy petition.

2.) Q: What is the creditor’s meeting?

A common problem for divorced couples, is that they go from a standard of living based upon two incomes, to a standard of living based upon one income. In addition, payments and debts are divided, and individuals are often left with a combination of high outstanding balances and high monthly payments.

If your expenses exceed your income, and your debt seems to be outweighing your assets, contact our attorneys at (586) 264-3756, to determine if bankruptcy may be a good option. The last thing you need after the stress of a divorce, is the stress of keeping up with bills. Let us get you the fresh start you deserve.