How much does it cost to file bankruptcy in Michigan? The current filing fee for a chapter 7 case is $ and for a chapter 13 case is $ Some courts also impose an additional administrative fee. You may pay the filing fee in installments. Attorneys' fees for Chapter 7 typically range from $1, to $1,, with an average of $1, Other costs include the $ filing fee. If you're thinking of filing for Chapter 7 bankruptcy, you're probably wondering how much it will cost. After all, money problems . Sep 01, · United States Bankruptcy Court. Eastern District of Michigan. Search form. Text Size: Decrease font size; Reset font size; Increase font size.
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University of Michigan is also the first university to be established by any of the states, as well as the first land-grant university, Michigan State. Michigan also has the most shoreline out of any state except Alaska. The auto industry has certainly recovered, experiencing a banner year in with record annual auto sales. Despite its healthy recovery from the Great Recession, Michigan residents may still be in need of help for their own financial situation.
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.
Each state, as well as the federal government, has enacted exemption laws that dictate the amount of property a debtor can keep through the bankruptcy process.
In most cases, exemption laws protect all of the assets of the debtor — allowing them to file for bankruptcy and keep all of their property. In addition to unique exemption laws, each state has different income guidelines for determining whether the debtor is eligible to file for Chapter 7. Thanks to bankruptcy reform in , debtors seeking to file Chapter 7 bankruptcy must demonstrate that they do not have enough disposable income to pay something back to their creditors.
If your income over the last 6 months is below the median in your state , you will automatically be eligible to file Chapter 7. If, on the other hand, your income is greater than the state median over the last 6 months for a household of your size, you will need to subject your monthly expenses to the means test.
The means test is a formula that calculates disposable income. If you have too much spoils left over at the end of the month, there is a presumption that you should be filing for Chapter 13 instead of Chapter 7 bankruptcy.
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. Married couples are not permitted to double the homestead exemption, though they are permitted to double most other exemptions. This includes household goods such as furniture, clothing, appliances, and books.
These are mostly fully protected, with the exception of the amounts in IRAs and pension or profit-sharing plans that are contributed within days of filing bankruptcy. The above figures are adjusted every three years. This fee must be paid in full by cash exact amount only , certified check, or money order. No other method of payment such as a credit or debit card is accepted. If you fall under this amount you have the opportunity when filing Chapter 7 in Michigan to petition to have the filing fee waived.
The fee waiver application will be reviewed by the court pursuant to Michigan bankruptcy laws. If they grant your fee waiver, you will not need to pay. If they deny it, you will still have the option to apply to make your filing fee payment in installments. Please note, however, that if you are paying in installments, and your case is dismissed for any reason before you have completed your payments, you will not be entitled to a refund.
After you have completed filling out your Michigan bankruptcy forms, completed the first credit counseling course, and dealt with obtaining your filing fee, you will need to print out all the required forms.
Please be certain to print all of the forms one sided. Double sided print-outs will not be accepted. This will include all the forms listed above, and it is a good idea to make a copy of the forms for yourself as well.
If you do not have a printer at home, there is likely a printing service available at a local Kinkos or Office Depot for a nominal fee. You could also try checking out your local library , which may have a lower rate or even some allowance for someone in the process of filing bankruptcy in Michigan. If you are working with an attorney , you will not need to worry about this step as they will file your case online through the court electronic filing system.
Next, you will need to actually go to the U. Bankruptcy Courthouse in your division to take care of filing your Chapter 7 bankruptcy paperwork with the court clerk.
They will stamp and process all of the documents. It is a good idea to call ahead to make sure you are going to the correct location, and be mindful of their working hours, especially if there is a federal holiday. As soon as your petition is stamped you will be entitled to the protection of the automatic stay , which makes it illegal for creditors to contact you and can even stop a foreclosure or repossession of your vehicle in its tracks.
It is best to file your Michigan bankruptcy petition in person in case there is a small error that can be easily correct while you are at the bankruptcy courthouse. There is a lot of paperwork to file, which all has to conform to local rules so it is important for everything to be in order.
After filing your paperwork officially with the court you will be assigned a Chapter 7 trustee to oversee your Chapter 7 bankruptcy in Michigan. Once you have the necessary contact information,you will need to collect and send your documents to your trustee according to their specifications. It is recommended that you contact your trustee ahead of time to find out how and what documents you will need to turn over.
Some examples of documents the trustee may request are:. Certificates of Title for all currently owed titled assets examples: car, boat, mobile home. Bank account statements, brokerage account statement and credit card statements.
Copies of leases, mortgages, deeds and land contract for property owned within the last six years. The names, addresses and phone numbers of each holder of a Domestic Support Obligation. Any other specific document requested by the trustee, if requested in writing at least 7 days before the Meeting of Creditors.
The next step after providing all of your information to your Chapter 7 trustee when filing bankruptcy in Michigan is to go ahead and complete your second financial management course. Under Michigan bankruptcy laws, the certificate of completion for this course is due within 60 days from your hearing date. We recommend doing this sooner rather than later so it does not get forgotten. This certification will come from the agency and will need to be directly filed with the court. You will not need to provide the certificate to your Chapter 7 trustee.
It will be with your court file. When you file a Chapter 7 bankruptcy in Michigan you will be required to attend one hearing, which is your meeting.
Usually, your meeting will just be with your trustee. You can learn more about the hearing and what to expect in this video. Your goal with your hearing should be to complete it in full on the first time without a continuance, so it is important to make sure that you are bringing all of your documentation.
As we previously discussed when filing Chapter 7 bankruptcy in Michigan, you will need to have provided the trustee with documents in advance of your hearing date.
If you do not make this deadline, it could result in dismissal of your case. Additionally, you also need to bring these documents to your hearing as well as two forms of identification. You will also have to bring your recent paystubs or any other proof of income.. The hearing itself is usually relatively quick. Essentially, the trustee will walk through your bankruptcy paperwork with you to verify that all the information provided is true and correct.
In the Motor City state of Michigan chances are pretty high that you have a car. You need to be certain to list the car properly on your bankruptcy forms and exempt any equity that it might have when filing bankruptcy in Michigan. You can determine the equity in your car by starting with the fair market value by using either Kelley Blue Book or National Automobile Dealers Association NADA and then subtracting any loan or money you owe on it.
The result will be the equity, or amount of money you could earn if you were to sell it. You can then protect that amount in your exemptions. For your car the Michigan state exemptions and the federal exemptions are very similar in value but it might still make a difference if your car is your most valuable asset.
If you are still making payments on your car, then your car lender may request that you sign a reaffirmation agreement pursuant to Michigan bankruptcy laws agreeing to maintain payments after your Chapter 7 discharge. 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. Filing for a Chapter 7 bankruptcy in Michigan requires a mix of both federal and local forms.
The federal forms make up the bulk of the paperwork which will be the same throughout the country. Local forms may also vary by district. You can determine which division is the one you should file in by contacting the court clerk using the contact information listen on the website.
The Eastern District requires a number of local forms in addition to the federal forms, including a Bankruptcy Petition Cover Sheet, a Mailing Matrix and a Declaration Under Penalty of Perjury for anyone filing pro se. Here, again, you can contact the court clerk to determine which division you will need to file in.
The Western District also requires specific local forms in addition to the federal forms, including a separate Schedule C for a joint case, the Mailing Matrix, and an Asset Protection Report. Filing a Chapter 7 in Michigan allows you to choose between taking the federal exemptions and the Michigan exemptions.
There are a couple big differences between the federal exemptions and the Michigan exemptions. First, if you are filing as a married couple filing jointly you can double some but not all of the Michigan bankruptcy exemptions.
If you are filing bankruptcy in Michigan and you have a lot of equity in your home you should absolutely consider using the Michigan state exemptions rather than the federal exemptions. Below, we will compare some of the most popular in each set.