How do you qualify for Chapter 7 bankruptcy in Michigan?

How do you qualify for Chapter 7 bankruptcy in Michigan?

In order to file a Chapter 7 bankruptcy in Michigan, you will have to qualify by passing the Means Test. The Means Test looks at your income for the past 6 months prior to filing your bankruptcy in Michigan. You can pass it right away if you are below a certain income level which varies based on your household size.

How often can you file Chapter 7 in Michigan?

Previous Chapter 7 filing and filing again: 8 Years. Previous Chapter 13 filing and filing again: 4 Years. Previous Chapter 13 filing, now filing Chapter 7: 6 Years.

What is the income limit for filing Chapter 7 in Michigan?

If your total monthly income over the course of the next 60 months is less than $7,475 then you pass the means test and you may file a Chapter 7 bankruptcy. If it is over $12,475 then you fail the means test and don’t have the option of filing Chapter 7.

How many bankruptcies are filed a year in Michigan?

Numbers are based on the 12 months from January 1st until December 31st. In 2019, there were 546 cases of business bankruptcy filed in Michigan….Annual number of business bankruptcy cases filed in Michigan from 2011 to 2019.

Characteristic Number of bankruptcy cases filed

What does it mean to file bankruptcy in Michigan?

Filing Chapter 7 Bankruptcy in Michigan. Chapter 7 bankruptcy or “straight bankruptcy” is a process designed to help consumers start over financially. Chapter 7 discharges unsecured debts such as high-interest credit cards and medical bills. Although the process is organized under federal law, Chapter 7 cases vary by jurisdiction.

Are there any bankruptcy exemptions in the state of Michigan?

Michigan Bankruptcy Exemptions. In Michigan, debtors can choose between the state or federal exemptions. Generally speaking, most debtors will elect to utilize Michigan bankruptcy laws because they allow more property to be protected.

Can a married couple file bankruptcy in Michigan?

Married couples are not permitted to double the homestead exemption, though they are permitted to double most other exemptions. Michigan also allows debtors to protect up to $3,525 of equity in a car, up to just one vehicle. A total value of $3,825 in personal property may be exempt under Michigan bankruptcy law.

Where are the bankruptcy courts located in Michigan?

Michigan bankruptcy courts are divided into two districts: the Eastern District and the Western District. The Eastern District of Michigan Bankruptcy Court is further divided into divisions: Bay City, Detroit, and Flint all have a bankruptcy court to serve local debtors.

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