Legal Question in Bankruptcy in Michigan

Re: Bankruptcy

You will not lose your home or car - there are certain exemptions allowed in Michigan and I'm sure both of these assets fall under them. If either of those assets still have a loan on them, the lenders will require a reaffirmation agreement, which is basically you just agreeing to continue paying on them after your bankruptcy.

If you don't want to pay back your cards, you need to file Chapter 7. Chapter 13 is the one where you agree to repay your debts, or a portion of them, over a period of time. There are certain qualifications for either chapter, but you likely qualify for Ch 7, especially if you have children and are not receiving any support for them. I'm actually helping a single mom with her bankruptcy right now - same sitation - ex in jail and no support.

If you need attorney assistance filing, please contact me.

Thank you.

Re: Bankruptcy

You should only file for bankruptcy if your credit card and other dischargeable debt exceeds the value of your nonexempt assets (e.g., cash, bank accounts, tax refunds, etc.) by at least two thousand dollars, because with a bit of attorney help, a settlement could be worked out with the credit card companies. If you do determine to go forward, Chapter 7 sounds like the best option for you. There is a $299 filing fee.

I strongly advise you to seek legal counsel no matter what because you will need to do some negative estate planning so that the trustee does not take assets such as cash, security deposits owed, unnecessarily and so that you include all potential debt. For example, if you know you have medical bills coming they should be included but if you file too early, they will not be discharged.

One of the things you will need to do is itemize the names, address, telephone numbers and account numbers, and amount of the debts. This will also need to be done with your assets. Any attorney you will consult with will need this information. Furthermore, you will have to complete a petition which will require this information.

Start there and get organized. Email me for help if you need it. [email protected] is a secondary address to [email protected]. I'm in the Lansing area. Good luck!