If you’re struggling with overwhelming debt, you might be wondering: What is the process for filing bankruptcy in Michigan?
To file for bankruptcy in Michigan, you must complete credit counseling, gather necessary financial documents, file a petition with the court, attend a meeting of creditors, and complete a debtor education course, with the specific steps varying slightly for Chapter 7 and Chapter 13.
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FAQs About Filing Bankruptcy in Michigan
What is the Means Test for Bankruptcy in Michigan?
The means test determines Chapter 7 eligibility by comparing your income to Michigan's median income and deducting allowable expenses.
Can I Keep My Home in a Michigan Bankruptcy?
Yes, Michigan’s homestead exemption protects up to $46,125 in home equity, allowing many filers to retain their homes.
What Happens to My Car in a Michigan Bankruptcy?
You can keep your car if its equity is within Michigan’s vehicle exemption limit of $3,775 or if you reaffirm the loan.
Can Bankruptcy Stop Wage Garnishment in Michigan?
Yes, filing for bankruptcy triggers an automatic stay that halts wage garnishments and other collection efforts.
Are Student Loans Dischargeable in Michigan Bankruptcy?
Student loans are rarely dischargeable, but they may be eliminated if undue hardship is proven.
How Often Can You File Bankruptcy in Michigan?
You can file Chapter 7 eight years after a previous Chapter 7 discharge, or Chapter 13 two years after a prior Chapter 13 discharge.
How Do I Choose Between Chapter 7 and Chapter 13?
Chapter 7 eliminates unsecured debts quickly, while Chapter 13 allows you to catch up on secured debts like a mortgage or car loan.