Legal Question in Bankruptcy in Michigan

bankruptcy chaper 7

I am wondering if I'm . I've never filed before and also I have been employed full time consistently for over 10 years . I am just inquiring based on my income and high credit card debt (most credit card debt was acquired in college and in my twenties , over 7 years ago ...still paying) .... I have regular re- occurring large monthly expenses including a mortgage payment of $650.00 per month , Student loan of $210.00 per month , car payment of $308.00 per month , 3 credit cards with a monthly debt average payment of $300.00 (that's with minumum due payments) home utilities averaging $200.00 per month and Michigan's high vehicle plus home insurance rates averaging 310.00 per month . I also have a few past due small bills including medical bills totaling $250.00 that I need to pay in one lump sum to clear but just can't get up the extra money . I only make $41,000 per year with no dependents so I pay quite a bit of taxes out of my paycheck . Generally speaking am I eligible ?


Asked on 6/24/07, 5:30 pm

2 Answers from Attorneys
Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: bankruptcy chaper 7

You have not provided enough information, and your question cannot be answered without an in-person consulatation. I can tell you that if you live in Wayne County, for instance, it is likely the presumption of abuse will not be present if you file and live in Wayne County. This means that on the means test, your income falls below the median for individuals living in Wayne County and you are eligible to file under Chap. 7. I do not know which county you live in. In Wayne County, the median income for a household of one is $42,596 annually. Chapter 13 is always an option as well.

This is only one part of the analysis. Please call me for a consulation at 248.679.1552 if you would like additional information.

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Answered on 6/25/07, 12:23 pm
Audra Arndt Audra A. Arndt & Associates, PLLC

Re: bankruptcy chaper 7

It sounds like you might be eligible, but there is a bunch of paperwork and worksheets you have to fill out to determine whether you would qualify for a ch 7.

You also might want to try credit counseling - I recommend Greenpath. They can greatly reduce your credit card payments and cut the interest, making it quicker and cheaper for you to pay off your cards and get back on your feet.

Keep in mind that student loans are not dischargable, but credit cards debts and medical bills would be.

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Answered on 6/27/07, 9:36 pm


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