How do I know if I qualify for Chapter 7 bankruptcy in Michigan?

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Question:

How do I know if I qualify for Chapter 7 bankruptcy in Michigan?

Answer:

There are two ways to qualify for a chapter 7 bankruptcy in Michigan:

  • You can prove that you make below the Michigan median income at the time when you are filing bankruptcy
  • You can take a Michigan means test. This involves adding up all of your income that you receive each month from various sources (your job, alimony payments or other income such as investment income) and then adding up all of your monthly expenses that are required (things like insurance, housing, etc.) Your required payments are then subtracted from your income to determine how much you have left over. If you don't have enough, using this calculation, to both live on and provide for yourself (or your family) and to pay your debts, then you may be eligible for a chapter 7.

Under a chapter 7 bankruptcy, you must list assets as part of your filing. The assets that are not exempt are then taken as part of the bankruptcy and sold in a sale, the proceeds from which are distributed to creditors. Any unpaid balance on eligible debts is then forgiven and you are no longer obligated to pay it.

If you are unsure whether you qualify for a Michigan chapter 7 bankruptcy, you should consider speaking with a lawyer for advice and for help during the bankruptcy filing process.

This article is provided for informational purposes only. If you need legal advice or representation,
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This site does not provide legal advice and users of this site should not interpret any of the information presented here as legal advice. The information provided merely conveys general information related to commonly asked legal questions. We are not a law firm and the employees responding to questions are not acting as your legal attorney. You should ultimately consult with a lawyer for your case.

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