How do I File for Bankruptcy in Michigan? The Top 6 Steps to Prepare to File Bankruptcy in Michigan!

If you are considering filing for Chapter 7 or Chapter 13 bankruptcy in Michigan, here are some important things to consider and steps necessary to prepare for your bankruptcy filing.  Here is the list in chronological order and we will expand on the sections below:

• Search for and interview local attorneys;
• Gather necessary documentation;
• Determine type the type of bankruptcy that is right for your circumstances;
• Pay required fees;
• Complete credit counseling;
• Sign prepared bankruptcy petition and other required signed documents for filing.

#1  Search for and interview local attorneys:

We recommend asking friends, family or co-workers for referrals.  The internet is also a good place to look for a licensed and experienced attorney to assist you.  Read online reviews and carefully review their professional credentials.  Filing bankruptcy requires a seasoned professional, especially when considering filing Chapter 13 bankruptcy which is more complicated to navigate and considered a legal specialty.  We offer a page on our website that helps potential clients understand the benefits of working with our firm.

Most credible firms offer a free consultation to explain available options and determine your best course of action.  We know the search process can be stressful so we offer same day phone or in-office consultation along with evening and weekend appointments to connect you with the answers you are seeking as soon as possible.  In order to prepare for the appointment, we offer our consultation form online or provide time in the office for you to complete. 

# 2  Gather necessary documentation:

Documentation is necessary for the attorney to help determine your best debt resolution option as well as required by the Trustee with an eventual filing. We ask for just the essential information at the time of the initial consultation and give you time to gather the larger list of documentation that the court and court-appointed Trustee will require.

Here are the documents that we suggest our clients bring to the initial consultation:

• Recent paystubs or other income sources for anyone living in the household;
• Copies of your bills and/or an old credit report;
• Recent statements for any mortgages or vehicles;
• Any paperwork from creditors regarding pending legal action (if applicable) (i.e. lawsuit, garnishment, foreclosure notice, etc.).

For the next step of preparing all of the paperwork, we request the documentation found here.

#3  Determine type the type of bankruptcy that is right for your circumstances:

There are two main types of consumer bankruptcy:  Chapter 7 for debt elimination and Chapter 13 bankruptcy for debt consolidation.   In short, Chapter 7 bankruptcy is a “fresh start” program that allows you to eliminate unsecured debt such as credit cards, medical bills, old utilities bills, etc.

Chapter 13 bankruptcy is a court authorized debt consolidation plan designed to help you protect your assets while you pay down debt.  You will ultimately eliminate any unsecured debt obligations that you were unable to pay during the course of the repayment plan.   By filing Chapter 13 you can stop a home foreclosure, vehicle repossession, wage garnishment and many other creditor actions.

Factors that determine your best option:

• Household income;
• Assets (equity in home, luxury items, retirement accounts, etc.);
• Timing of previous bankruptcy filings(have you filed a Chapter 7 Bankruptcy within the previous 8 years);
• Long term financial goals.

#4  Pay required fees:

The court filings fees differ by the type of bankruptcy filed.  We also take payment for the court-required credit counseling session as well as a merged credit report.  The credit report ensures we have put all creditors on notice and covers 2 or the 3 credit bureaus.  Here is a breakdown of fees:

Chapter 7: 

• $395 - $430.00 total non-attorney fees
  • Court filing fee: $335.00
  • Credit counseling & Credit Report:         
    • Single: $60.00
    • Married: $95.00
• Attorney fees:  The court requires that all attorney fees are paid before the Chapter 7 bankruptcy case is filed.  Individual firms set their own attorney fees in our filing districts.  We base our fees on each individual case circumstances

Chapter 13: 

• $ 370 - $405.00 total
  • Court filing fee: $310.00
  • Credit counseling & Credit Report:         
    • Single: $60.00
    • Married: $95.00

At our firm we accept credit and debit cards in additional to cash, money order or a personal check.

#5  Complete credit counseling:

The court requires that you complete two phases of credit counseling with a certified credit counseling agency.  This can simply be done online or over the phone.  You will fill out requested information and then speak to a credit counselor.  The information you give is not directly reported to the court and does no effect the outcome of your case.  The completed credit counseling certificate is filed with your case.  It is required to be completed one calendar day before the case is filed.

The second step of credit counseling is called the Debtor Education Course.  Similar to the first step, the second step is completed online and finished over the phone.  The certificate of completion is then filed with the court to allow for processing your court discharge.

•  https://ccadvising.com/articles/ultimate-guide-to-credit-counseling-the-first-bankruptcy-course

#6  Sign prepared bankruptcy petition and other required signed documents for filing:

Chapter 7 and Chapter 13 bankruptcy have unique paperwork.  Getting the documentation filed properly and accurately is essential to getting the best outcome for your case and protecting your property and assets.  Your attorney should be knowledgeable about of the necessary paperwork and have the proper computer software to complete and file all of the forms in a timely manner.  Here is a sample (but not comprehensive list) of the documentation that is filed

• Voluntary Petition;
• Bankruptcy Petition Cover Sheet;
• Schedules A – J (Chapter 13 only);
• Statement of Financial Affairs; 
• Chapter 13 Plan (Chapter 13 only);
• Verification of Creditor Matrix.

Find the Right Professional

As you can see, there are many steps and requirements for filing bankruptcy.  It is critical to find a licensed attorney that you feel comfortable with and is knowledgeable and experienced with the local bankruptcy rules in your Michigan filing district.

We offer free in-office or phone consultations to review your personal circumstances, analyze your situation and advise you on the best course of action. We specialize in bankruptcy law, debt resolution, foreclosure prevention and credit repair. We have offices in Detroit, Southfield, Dearborn, Flint, Ann Arbor, Lansing and Warren, Michigan. Please call us toll free at 866-261-8282 or schedule a consultation online.