Where Do I Go To File My Petition?
Assuming you’re making plans for personal bankruptcy, you’ve already likely got much to consider. The good thing about bankruptcy is that it gives you a fresh start, and compared to other options, is a really good way of getting one’s money situation under control again. Yet, your bankruptcy petition can eat up a lot of your energy and time. Whether it ’s organizing every one of your written documents, making certain they find themselves in the right hands by certain dates, or coming to the required credit counseling session, you might end up doing a decent amount of running around.
After your counseling session and once you have your personal financial documents ready to go, it isn’t always obvious where to start. Several application sheets and forms are required, all of which are accessible and can be ordered online. You will also want to come with your filing fee available; for Chapter 7, this is $299, and then for Chapter 13, $274. These figures each cover the added administrative fee and are susceptible to change. Based upon your monetary constraints, this might be settled in installments, but make sure you double-check before planning on that to be the case. While it is possible to submit the necessary forms all on your own, it’s helpful to enlist the support of a qualified bankruptcy attorney. Nothing else can happen in your bankruptcy before every required document is filed correctly, and thus it’s crucial to ensure that it’s all in order.
Depending on where you reside, your Chapter 7 or 13 petition can be submitted at one of several courtroom and clerks’ offices. Chapter 7 will require an inventory of valuable assets, and for Chapter 13 you’ll need a payment schedule already planned out. When filing, the usual necessities apply: you should definitely have your valid state ID and Social Security number.
The region in which you file is required to be where you have resided or conducted business for at least 6 months (180 days). If you reside in the Western District, one can find court buildings in Grand Rapids (One Division Avenue, N.); Marquette (202 West Washington St., 3rd floor); Kalamazoo (410 West Michigan); Lansing (315 West Allegan) and Traverse City (Logan Place West, 3249 Racquet Club Drive). Federal government buildings and local trustee’s offices, in which your 341 (or creditor’s) meeting would be held, also are situated nearby in those regions. The office is open between 8:30 AM and 4:00 PM each day, besides the weekends and legal holidays.
If you need to file in the Eastern District, bankruptcy courts can be found in Flint (226 West Second Street), Detroit (211 West Fort Street) and Bay City (111 First Street). 341 meetings for residents from the regions occur in the same office buildings, except for in Bay City where the 341 site is right down the block from the main court building. The clerk’s office is open Mon – Fri., 8:00am to 4:00pm, again excluding Saturdays, Sundays and our annual holidays.
Bankruptcy could be the ideal opportunity to rearrange your credit and money affairs, and could help you correct the habits that could have added to financial problems in the past. Although the information and mass of the paperwork could seem daunting to you, a bankruptcy lawyer will easily comprehend them, and could be a vital resource when it comes to coordinating and processing your bankruptcy. Structure your bankruptcy thoroughly prior to when you file – as long as it’s submitted and carried out competently, it’s your first big step in the right direction of a better financial future.
Do I Really Need Credit Counseling Before Bankruptcy?
Yes.
If you’re thinking about filing for personal bankruptcy, it’s important to know ahead of time what you’ll need to file properly. In 2005, many modifications were made to U.S. bankruptcy guidelines, and some of these may have an effect on how and which Chapter you choose to file. Just one of the biggest differences concentrates on pre-filing obligations, which now call for finishing a credit guidance program.
At some point in the 180 days (six months) leading up to filing, a debtor has to locate a government-approved company offering the right credit counseling program. This needs to be an agency located in your judicial district, the same area in which you will file for bankruptcy. The counseling session typically costs around fifty dollars, depending on the services offered; for people who cannot afford it, one could request a free counseling session from the institution before the counseling session takes place.
Even though this requirement may sound overwhelming, it generally lasts within an hour and a half, and might be accomplished via phone, on the web or at the credit counseling office. The whole course usually consists of a detailed look at your present economic condition, and a discussion about whether or not personal bankruptcy is the best choice for you at this time. It also helps to think of the counseling as a resource, instead of a chore. A reasonable budget can be devised at this time with the help of the credit counselor. This may be convenient later on as the initial outline of your monthly payment program, and help you to stay on track.
What, exactly, will you need to be ready for the counseling course? You might want to have pay stubs, a record or estimate of regular bills and valuable assets, and a recent and comprehensive outline of all (both secured and unsecured) debts owed. Having these documents prepared prior to the appointment will be a big help. You’ll also want to take time when selecting a counseling agency, as they can range in skills, certification status and accessible programs and services.
Once you’ve participated in the course, you need to receive a certificate of completion. This is going to be filed along with your petition; without the inclusion of the certificate, which is provided by the U.S. Trustee, your case will be dismissed. Check with the Trustee’s office or your area bankruptcy clerk’s office to locate an accredited, trustworthy, and supportive consumer credit counseling organization.
Michigan Chapter 7 Debt Assistance
A Chapter 7 bankruptcy is a very straightforward and uncomplicated process. Our bankruptcy lawyers have helped people deal with many Chapter 7 filings. Our Michigan bankruptcy attorneys are familiar with this particular type of bankruptcy and how it could be helpful in your situation. Our goal is to assist you in obtaining the right debt relief necessary for you to obtain a fresh financial start and reduce the stress caused by your substantial financial burdens.
Will I Lose Property With A Chapter 7 Bankruptcy Filing?
Chapter 7 bankruptcy cases don’t include filing a plan of repayment like they do Chapter 13. In a “7″ the bankruptcy trustee identifies and distributes the debtor’s nonexempt property and uses the proceeds of the sale of such property to pay creditors per the guidelines in the Bankruptcy Code. A portion of the debtor’s assets might be subjected to liens and mortgages that promise the assets to different creditors. It’s important to keep in mind that the Bankruptcy Code permits the debtor to retain some “exempt” property; but a trustee will liquidate the rest of the debtor’s assets. Therefore, debtors need to know that by submitting a petition under Chapter 7 can, in some cases, result in the sacrifice of property. However, in the majority of cases, there is little or no non-exempt property to lose. Which makes a Chapter 7 bankruptcy attractive.
If you’re considering a Chapter 7 bankruptcy in Michigan, let our experienced bankruptcy lawyers help you to understand your options.
Commonly Asked Questions About Bankruptcy In Michigan
What Exactly Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, often known as a straight bankruptcy, is a liquidation proceeding. The debtor hands over all non-exempt assets to the bankruptcy trustee who then converts it to cash for distribution to the collectors. The consumer will get a discharge of all dischargeable financial obligations generally within four months. In the majority of cases the consumer has no assets that he would lose so Chapter 7 will provide that him / her a relatively quick “fresh start”.
One of the most important functions of Bankruptcy Law is to allow an individual, who is hopelessly mired with debt, a clean start by wiping out his / her debts.
Men and women who file for chapter 7 bankruptcy must agree to go to credit counseling. After declaring chapter 7 bankruptcy, it may be tough to obtain credit for a few years, and you will not be able to file for personal bankruptcy again for a set period of time.
It has become more challenging to file for chapter 7 bankruptcy in the United states, thanks to laws which substantially tightened the bankruptcy policies in the early 2000s. It is wise to consult a legal professional and an accountant prior to investing in a bankruptcy filing, because even though the professional fees for the assessment may be high, there may be an option that has not been thought about. A professional consultation can also smooth the way to move forward with bankruptcy filings, if a debtor decides to carry on with bankruptcy proceedings.
What Is Chapter 13 Bankruptcy?
Chapter 13 Bankruptcy is commonly recognized as a reorganization bankruptcy. Chapter 13 bankruptcy is filed by individuals who would like to pay off their financial obligations over a period of three to 5 years. This type of bankruptcy appeals to individuals who have non-exempt assets that they want to retain. It is also only an alternative for individuals who have predictable earnings and whose income is sufficient to pay their reasonable expenditures with some sum left over to pay down their financial obligations.
Considering Bankruptcy: The Chapter 7 Option
Feeling the weight of the world with more and more bills to pay can be daunting. Chapter 7 bankruptcy is a good way to get a fresh start.
Nearly 2/3 of all personal bankruptcy filings are Chapter 7. This makes it the most common type of bankruptcy. What I will do is define for you exactly what Chapter 7 bankruptcy is and answer 3 of the most common questions asked about it.
Chapter 7 bankruptcy, also known as a straight bankruptcy, is a process where you sell your non-exempt property to help pay debts owed to creditors. It is a liquidation proceeding. Chapter 7 is a quick process that usually takes under 6 months to complete from the time an attorney helps you file. It is a provides the opportunity for a fresh start.
What follows are 3 commonly asked questions about Chapter 7 bankruptcy
1. Do creditors have to leave me alone after I file? In short, yes. Creditors by law are required to stop all actions after you file for Chapter 7 bankruptcy. This is why bankruptcy could be a good way to get yourself a new lease on your financial situation.
2. Will everyone I know find out I went bankrupt? Your bankruptcy filing is a matter of public record. That being said, there is not a strong likelihood that anyone is going to find out unless you tell them. There are so many bankruptcy filings that it isn’t something that typically is publicized.
3. What are the most common reasons that people file for bankruptcy? Unemployment, medical expenses, overextended credit, and divorce to name a few. People often have unexpected, sudden, and large expenses that cause them to fall deeper into debt. Chapter 7 bankruptcy offers them a way to get their heads above water again.
Chapter 7 bankruptcy is not something to take lightly. You will want to further educate yourself about your options and choices. A good step to take is to speak with a Chapter 7 bankruptcy attorney about your issue.
Chapter 7 bankruptcy can be an effective means of eliminating debt. Often times, it can be more effective than debt consolidation. When you are looking for a Michigan bankruptcy chapter 7 attorney, get a free consultation with Michigan bankruptcy chapter 7 attorneys Ardelean and Dunne.
Chapter 7 (Straight Bankruptcy)
In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for “exempt” property which the law allows you to keep. In most cases, all of your property will be exempt. But property which is not exempt is sold, with the money distributed to creditors.
If you want to keep property like a home or a car and are behind on the mortgage or car loan payments, a chapter 7 case probably will not be the right choice for you. That is because chapter 7 bankruptcy does not eliminate the right of mortgage holders or car loan creditors to take your property to cover your debt.
If your income is above the median family income in your state, you may have to file a chapter 13 case (the national median family income for a family of four in 2006 was approximately $65,796–your state’s figures may be higher or lower). Higher-income consumers must fill out “means test” forms requiring detailed information about their income and expenses. If the forms show, based on standards in the law, that they have a certain amount left over that could be paid to unsecured creditors, the bankruptcy court may decide that they can not file a chapter 7 case, unless there are special extenuating circumstances.
What is a Reaffirmation and How Does It Affect Me?
A reaffirmation of a debt states that you will continue to pay that particular debt even after your discharge in a chapter 7 case. In most cases, we do not recommend that you reaffirm any debts. However, in some cases you would want to reaffirm a car or a house. In that case, as long as you can still afford that particular car/house based on the budget we put forth in your bankruptcy schedules, we would recommend that you reaffirm the debt.
Please remember that by reaffirming your debt, you WILL continue to be responsible for that particular debt after your bankruptcy filing. So, it is essential that you be certain you want to keep the debt and more importantly that you can afford to keep paying on that debt. We will discuss the parameters of your specific debts when you sit down with us at your initial consultation.
Do I Have to Reaffirm Any Debts?
No. Reaffirmation is always optional. It is not required by bankruptcy law or any other law. If a creditor tries to pressure you to reaffirm, remember you can always say no.
Can I Change My Mind After I Reaffirm a Debt?
Yes. You can cancel any reaffirmation agreement for sixty days after it is filed with the court. You can also cancel at any time before your discharge order. To cancel a reaffirmation agreement, you must notify the creditor in writing. You do not have to give a reason. Once you have canceled, the creditor must return any payments you made on the agreement.
Also, remember that a reaffirmation agreement has to be in writing, has to be signed by your lawyer or approved by the judge, and has to be made before your bankruptcy is over. Any other reaffirmation agreement is not valid.