Means Testing for Chapter 7 in Southeastern Michigan
Chapter 7, otherwise known as liquidation, is generally the simplest and quickest form of bankruptcy. Chapter 7 bankruptcy is available to individuals, married couples, and businesses such as corporations and partnerships. When filing for personal bankruptcy in Detroit, you will find the advice of local Detroit bankruptcy lawyers or lawyers in the surrounding Tri-county area, helpful in explaining the process and timeframe for Chapter 7 cases.
A chapter 7 bankruptcy no-asset case requires you have no non-exempt property for the trustee appointed to your case to sell. This trustee will gather and sell your non-exempt property and will use the proceeds from the sale to pay your creditors.
Once the trustee takes control of any property, any proceeds from the property sale will first go to pay the expenses of the administration of the case, and then any remaining amount goes to creditors with allowed claims, according to the priority of the claims. Any wages you earn after you file the case are yours, beyond the reach of creditors who had claims on the date you filed for bankruptcy.
Detroit bankruptcy lawyer on means testing for Chapter 7 cases
- After we have determined together that a Chapter 7 bankruptcy is right for you, we make sure that you will pass the means test. You must show that you do not earn more than the median income in Michigan. If your income is too high, our bankruptcy lawyer in Detroit works with you to identify allowable deductions from your income to help you pass the means test.
- Once you begin the filing for Chapter 7, you must go through credit counseling and pay any overdue tax returns within the first few weeks of filing. This step is beneficial for individuals struggling with financial debt since it helps individuals understand how they reached the point of bankruptcy and what potential traps to avoid in the future.
Bankruptcy lawyer on the Chapter 7 process
- A bankruptcy starts with the filing of the official petition, schedules, and a statement of financial affairs with the bankruptcy court. During this process, you must show a listing of all creditors and the amounts owed along with the type of their claim. You also are required to produce a listing of all owned properties, sources of your income from any employment, and a detailed listing of your living expenses. To file a Chapter 7 bankruptcy in Detroit, there is a filing fee of $299 ($245 case filing fee, a $39 miscellaneous administrative fee, and a $15 trustee surcharge).
- As soon as you file for bankruptcy, your creditors are prevented from trying to collect on your debts through what is called an automatic stay.
Help and advice for your bankruptcy needs in Detroit and beyond
Take the first step in restoring your financial future and talk to a Detroit bankruptcy lawyer at the Valentino Law Firm today. You will be advised by a professional who understands bankruptcy in Michigan.
Bankruptcy attorney, Victor P. Valentino and his experienced legal staff provide thorough, effective legal assistance with civil litigation, workers compensation, bankruptcy, personal injury and insurance law to residents of the Detroit Tri-County area. With offices located in Bloomfield Hills, he is well-positioned to assist clients in Wayne, Oakland, Macomb and Genesee Counties, including the Bloomfield, Pontiac, Waterford, Clarkston and White Lake areas.
We understand that bankruptcy is a major disruption in your life, and we work to minimize the burden for you. Our office staff helps you fill out all of the paperwork and assists you with obtaining the documents needed for filing bankruptcy. We charge a low flat fee for our complete bankruptcy services—and only $300 to initiate the bankruptcy process.
To arrange your free consultation with a Southeastern Michigan bankruptcy lawyer, contact the Valentino Law Firm in Metro Detroit at 248-334-5340.
