Best Bankruptcy Lawyers in Michigan

About Bankruptcy Law in Michigan, United States

Bankruptcy is a legal process that offers individuals and businesses a way to deal with overwhelming debt. In Michigan, bankruptcy is governed by federal law, primarily under the U.S. Bankruptcy Code, but state laws also play an important role, especially when it comes to property exemptions. Filing for bankruptcy can help you eliminate certain debts or create a plan to repay them, while providing relief from creditor actions such as wage garnishments, repossessions, and foreclosure. Michigan residents typically file for bankruptcy in the United States Bankruptcy Court for the Eastern or Western District of Michigan, depending on where they live.

Why You May Need a Lawyer

While some people choose to file for bankruptcy on their own, hiring an experienced bankruptcy attorney can make the process smoother and help protect your interests. Reasons you might need a lawyer include:

• You are facing foreclosure on your home and want to explore options to keep it.
• You are dealing with aggressive collection actions such as lawsuits or wage garnishments.
• You have complex assets or significant debts and need help determining which type of bankruptcy (such as Chapter 7 or Chapter 13) is best for you.
• You want to ensure you take advantage of all available exemptions to protect your property.
• You are uncertain about which debts can be discharged and which cannot.
• You have previously filed for bankruptcy or have other legal complications.

A lawyer can help you understand your rights, fill out the required paperwork correctly, and represent you in court hearings if needed.

Local Laws Overview

In Michigan, bankruptcy is primarily a federal matter, but state law becomes particularly important regarding exemptions. Exemptions are the assets you can keep despite filing for bankruptcy. Michigan allows filers to choose between federal exemptions and Michigan’s own set of exemptions. For instance, Michigan's homestead exemption lets you protect a specific amount of equity in your primary residence. Other commonly used exemptions cover personal property, vehicles, wages, and retirement accounts.

Additionally, Michigan law prohibits creditors from acting against you as soon as you file for bankruptcy, due to the "automatic stay" provided by federal law. However, each bankruptcy court district in Michigan may have its own local rules and requirements that you and your attorney must follow, which could impact paperwork, deadlines, or procedures specific to Michigan filers.

Frequently Asked Questions

What types of bankruptcy are available to individuals in Michigan?

The most common types are Chapter 7 (liquidation) and Chapter 13 (reorganization). Chapter 7 is for those unable to repay debts, while Chapter 13 helps those with a regular income arrange a repayment plan.

Will I lose my house or car if I file for bankruptcy in Michigan?

Michigan allows exemptions to protect some or all of the equity in your primary home and vehicle. The specifics depend on your individual situation and whether you use federal or state exemptions.

How long does a bankruptcy stay on my credit report?

A Chapter 7 bankruptcy typically remains on your credit report for 10 years, while a Chapter 13 bankruptcy remains for 7 years from the date of filing.

Can all my debts be eliminated through bankruptcy?

Not all debts can be discharged. Most credit card debt, medical bills, and personal loans can be eliminated, but child support, most student loans, and most tax debts usually cannot.

How much does it cost to file for bankruptcy in Michigan?

There are court filing fees and, if you hire one, attorney fees. As of 2024, the filing fee for Chapter 7 is about $338, and for Chapter 13 it is about $313, not including legal fees.

Do I have to go to court if I file for bankruptcy?

Most bankruptcy filers must attend a meeting of creditors, called a "341 meeting," but do not usually appear before a judge unless there are disputes or unique issues in their case.

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

Eligibility for Chapter 7 depends on your income, expenses, and the "means test" formula, which compares your income to the median for Michigan households of your size.

Can I keep any credit cards after filing for bankruptcy?

Generally, you will need to list all credit cards in your bankruptcy filing, and most accounts will be closed, even if they have a zero balance.

Will bankruptcy stop foreclosure or repossession in Michigan?

Filing for bankruptcy triggers an automatic stay that temporarily stops foreclosure or repossession. Chapter 13 bankruptcy may offer a way to catch up on payments and keep your property.

How often can I file for bankruptcy in Michigan?

There are waiting periods between bankruptcy discharges. For example, you must wait 8 years between Chapter 7 discharges and 4 years between a Chapter 7 and Chapter 13 filing.

Additional Resources

• United States Bankruptcy Court for the Eastern District of Michigan
• United States Bankruptcy Court for the Western District of Michigan
• Michigan Legal Help - offers information and tools for self-represented individuals
• State Bar of Michigan - Lawyer Referral Service for finding an attorney
• Legal Services of Eastern Michigan and Legal Aid of Western Michigan - provide assistance for eligible individuals
• Federal Trade Commission - offers consumer information about bankruptcy

Next Steps

If you are considering bankruptcy in Michigan, start by gathering information about your debts, income, assets, and expenses. Determine if you want to try to file on your own or if seeking legal counsel is a better choice for your circumstances. Consulting with a bankruptcy attorney can help you understand your options and the potential consequences. You can contact your local bankruptcy court for resources or use the State Bar of Michigan’s Lawyer Referral Service to connect with a qualified bankruptcy lawyer. Take action early to protect your rights and assets and to receive advice tailored to your particular situation.