How Long Does it Take to File Bankruptcy in Michigan?

Filing for bankruptcy in Michigan can vary in duration depending on the type of bankruptcy you choose. Understanding the timeline helps you plan and avoid unnecessary delays.

To file for bankruptcy in Michigan, the process for Chapter 7 typically takes 3–6 months, while Chapter 13 lasts 36–60 months due to its repayment plan structure. Preparation, court hearings, and mandatory courses influence these timelines.

With decades of experience helping Michigan residents achieve financial freedom, Kostopoulos Bankruptcy Law provides expert guidance to handle every step of the bankruptcy process. Below, we’ll outline the timelines and steps for both Chapter 7 and Chapter 13 bankruptcy, along with tips to streamline the process.

How Long Does Chapter 7 Bankruptcy Take in Michigan?

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is designed for individuals with significant unsecured debts and limited income. The process typically takes 3–6 months from filing to discharge.

Timeline of Chapter 7 Bankruptcy in Michigan

Pre-Bankruptcy Credit Counseling (1–2 Days):
- Before filing, you must complete a credit counseling course approved by the U.S. Trustee Program. This step can be completed online or in person and usually takes a few hours.
Filing the Bankruptcy Petition (Immediate):
- Once your attorney has prepared the necessary forms, the petition is filed with the court. This filing triggers the automatic stay, halting creditor collection efforts immediately.
341 Meeting of Creditors (30–45 Days After Filing):
- Approximately one month after filing, you’ll attend a meeting with the bankruptcy trustee. Creditors may attend, but this is rare.
Debtor Education Course (Within 60 Days After Creditors Meeting):
- To receive your discharge, you must complete a post-filing debtor education course. This course takes about two hours and can also be done online.
Discharge of Debts (90–120 Days After Filing):
- If no objections are raised, the court will issue a discharge order within three to four months, releasing you from eligible debts.

A bankruptcy trustee and bankruptcy petition in bankruptcy court.

How Long Does Chapter 13 Bankruptcy Take in Michigan?

Chapter 13 bankruptcy, often called the wage earner’s plan, involves restructuring your debts into a manageable repayment plan. The entire process takes 36–60 months, depending on the duration of your repayment plan.

Timeline of Chapter 13 Bankruptcy in Michigan

Pre-Bankruptcy Credit Counseling (1–2 Days):
- Similar to Chapter 7, you must complete a credit counseling course before filing.
Filing the Bankruptcy Petition (Immediate):
- Your attorney files the petition, initiating the automatic stay and pausing all collection actions, including wage garnishments and foreclosures.
341 Meeting of Creditors (30–45 Days After Filing):
- This meeting is required and allows the trustee and creditors to review your repayment plan.
Confirmation Hearing (30–45 Days After 341 Meeting):
- A judge reviews and approves your proposed repayment plan. Payments typically begin shortly after filing, even before plan confirmation.
Repayment Plan (36–60 Months):
- You’ll make monthly payments to the bankruptcy trustee, who distributes the funds to creditors according to the court-approved plan.
Debtor Education Course (Before Discharge):
- Completing this course is required for a discharge.
Discharge of Debts (36–60 Months After Filing):
- After completing all plan payments and requirements, the court issues a discharge, eliminating remaining eligible debts.

What Factors Affect How Long Bankruptcy Takes?

Several variables can influence how quickly you can complete the bankruptcy process in Michigan:

Completing Mandatory Courses:
- Both pre-bankruptcy credit counseling and post-filing debtor education are required. Delays in completing these can extend the process.
Accuracy of Documentation:
- Providing accurate financial information and required forms to your attorney prevents delays in filing and court proceedings.
Objections from Creditors:
- If creditors or the trustee object to your petition or repayment plan, the process may take longer to resolve.
Type of Bankruptcy:
- Chapter 7 is faster but requires qualifying under the means test. Chapter 13 takes longer due to the repayment plan.
Attorney Expertise:
- Working with an experienced bankruptcy attorney ensures proper filing, minimizes delays, and helps you meet all court deadlines.

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How Early Can You Start Preparing for Bankruptcy in Michigan?

Preparation for bankruptcy can begin up to 180 days before filing. This time is used to:

Complete mandatory credit counseling.
Gather financial documents such as tax returns, pay stubs, and bank statements.
Work with your attorney to evaluate your eligibility and develop a strategy.

Starting early helps avoid errors and ensures a smoother process.

How Can an Attorney Speed Up the Process?

An experienced attorney can significantly reduce the time it takes to file for bankruptcy by:

Ensuring all paperwork is accurate and submitted promptly.
Guiding you through mandatory courses.
Responding quickly to objections or court requests.
Helping you avoid common mistakes that could delay your case.

A Michigan bankruptcy attorney filing bankruptcy for a debt discharge in bankruptcy court.

Comparing Chapter 7 and Chapter 13 Bankruptcy Timelines

Understanding the timelines for Chapter 7 and Chapter 13 bankruptcy can help you decide which option best suits your financial situation. While Chapter 7 is a quicker process aimed at discharging unsecured debts, Chapter 13 involves a longer-term repayment plan designed to help you catch up on secured debts, like a mortgage or car loan. Below is a breakdown of key milestones for both types of bankruptcy:

Step	Chapter 7 Timeline	Chapter 13 Timeline
Credit Counseling	1–2 Days	1–2 Days
Petition Filing	Immediate	Immediate
341 Creditors Meeting	30–45 Days After Filing	30–45 Days After Filing
Plan Confirmation Hearing	N/A	30–45 Days After 341 Meeting
Repayment Plan	N/A	36–60 Months
Debtor Education	Within 60 Days Post-Filing	Before Discharge
Debt Discharge	3–6 Months After Filing	36–60 Months After Filing

This table highlights the key differences in timing for each bankruptcy type, helping you understand what to expect from start to finish. If you’re unsure which option is right for you, an experienced bankruptcy attorney can provide personalized guidance based on your financial circumstances.

What Are the Key Differences Between Chapter 7 and Chapter 13 Bankruptcy in Michigan?

When deciding between Chapter 7 and Chapter 13 bankruptcy in Michigan, it’s important to understand the fundamental differences in their processes, requirements, and outcomes. These distinctions can significantly impact the time it takes to complete your bankruptcy and the relief you receive.

Chapter 7 Bankruptcy:

Eligibility: Requires passing the means test, which assesses your income and expenses. This option is ideal for individuals with limited income and significant unsecured debts like credit card bills and medical expenses.
Process Length: Typically completed within 3–6 months.
Debt Relief: Most unsecured debts are discharged, meaning you are no longer responsible for repayment.
Asset Impact: Nonexempt assets may be sold to repay creditors, though most filers can keep essential property through exemptions.

Chapter 13 Bankruptcy:

Eligibility: Designed for individuals with steady income who want to catch up on secured debts like mortgages or car loans.
Process Length: Involves a repayment plan lasting 36–60 months.
Debt Relief: Remaining eligible debts are discharged after successful completion of the repayment plan.
Asset Impact: Allows you to keep your assets while adhering to the court-approved repayment plan.

Which Option Is Right for You?

Choosing between Chapter 7 and Chapter 13 depends on your financial goals and current circumstances. Chapter 7 offers faster relief, while Chapter 13 provides a structured plan to retain assets and repay debts over time.

Contact Kostopoulos Bankruptcy Law Today

Going through the bankruptcy process in Michigan doesn’t have to be overwhelming. At Kostopoulos Bankruptcy Law, our experienced team is dedicated to helping you achieve financial relief quickly and efficiently.

Call us today at 877-969-7482 for a free no-obligation consultation. Let us guide you through every step of the process and help you secure the fresh start you deserve.

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