Michigan Bankruptcy Chapter 7 Attorney

Are you facing overwhelming debt in Michigan? Take control of your financial future with Chapter 7 bankruptcy. Explore your options and start the journey to a debt-free life today.

Your Path to Financial Freedom in Michigan!

Wipe the Slate Clean, Eliminate Unsecured Debts, and Regain Control of Your Financial Future.

If overwhelming debt is weighing you down, our Chapter 7 bankruptcy lawyers in Michigan offer a clear route to a fresh start. Our experienced team is here to guide you through the process, providing clarity, support, and personalized solutions tailored to your unique situation.


Take the first step toward a debt-free tomorrow by booking a free consultation with our debt relief specialists.


It is important to note that your income must be below the median income for your family size to qualify for Chapter 7 Bankruptcy. Alternatively, if your income exceeds that threshold, you must pass the means test or demonstrate 'special circumstances'. If you're not eligible to apply, there are a lot of alternatives to opt for.


Our bankruptcy law firm has been serving the people of Michigan for over 30 years and has successfully impacted the lives of thousands.

Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a legal process in the United States that allows individuals or businesses to eliminate most of their debts by liquidating non-exempt assets to repay creditors. This type of bankruptcy is often referred to as “straight bankruptcy”. It is designed to give the filer a fresh start by releasing them from the obligation to repay unsecured debts such as credit card bills, medical bills, and personal loans.

It involves the appointment of a trustee who oversees the sale of non-exempt assets and the distribution of proceeds to creditors. Upon completing the process, the debtor is typically discharged from owing most of their debts.

Michigan’s unique exemptions play an important role in Chapter 7 proceedings. The state provides specific protections for essential assets, including homestead exemptions for primary residences and exemptions for personal property, ensuring that individuals can retain necessary belongings.

Understanding the details of Michigan’s bankruptcy laws and exemptions is important. In this landscape, the assistance of an experienced Michigan bankruptcy attorney becomes invaluable, helping individuals navigate the process, protect their assets, and work toward a more stable financial future. 

Qualifying for Chapter 7 Bankruptcy

Understanding the eligibility criteria is key if you’re considering Chapter 7 Bankruptcy in Michigan. The primary factor often is your income. You’re typically eligible if your earnings fall below the median income for your family size in Michigan. It’s a way to relieve those genuinely struggling with their financial situation.

In 2021, the typical income for a four-person family in Michigan stood at $80,000. [1]

However, if your income surpasses the median, don’t lose hope. The means test comes into play. This test compares your income to allowable expenses, considering essential living costs. Passing the means test indicates your financial situation requires the immediate relief Chapter 7 offers.

Yet, life is complex, and the law acknowledges that. “Special circumstances” can also be a pathway to eligibility. If unique challenges or extraordinary expenses affect your ability to repay debts, Chapter 7 might still be viable. It’s a safety net for those facing unexpected financial hurdles.

Complying with these eligibility considerations requires precision. Consulting with our Michigan bankruptcy attorney can clarify your situation, ensuring you make informed decisions about pursuing Chapter 7 Bankruptcy.

Pros and Cons of Chapter 7 Bankruptcy

When considering Chapter 7 bankruptcy in Michigan, it's important to weigh the advantages and disadvantages to make an informed decision about your financial future.



How Chapter 7 Works in Michigan
A Step-by-Step Guide

Filing for Chapter 7 bankruptcy in Michigan involves a structured process to provide debt relief to eligible individuals. In the year 2022, 98% of Chapter 7 bankruptcy cases in Michigan were successfully completed.


Here's a step-by-step guide to help you understand how Chapter 7 works:

Eligibility and Credit Counseling

Determine your eligibility based on income and means testing. Undergo mandatory credit counseling from an approved agency before filing.

the Petition

Prepare and file the necessary bankruptcy forms, including detailed information about your financial situation. Pay the filing fee unless you are eligible for a fee waiver.


Upon filing, the court issues an automatic stay, immediately halting creditor actions such as collection calls, wage garnishments, and foreclosure proceedings.

of Creditors

Attend the 341 Meeting, where you, your attorney, and a bankruptcy trustee discuss your financial affairs under oath. Creditors may attend but typically do not.


The appointed trustee assesses non-exempt assets for potential liquidation to repay creditors. Exemptions protect certain properties from liquidation.

of Debts

Upon successful completion of the process, eligible unsecured debts are discharged, freeing you from the obligation to repay them.

Post-Bankruptcy Counseling

Complete a debtor education course after filing but before receiving the final discharge.

the Case

The court officially closes the bankruptcy case, and you can begin the process of rebuilding your financial life.

Chapter 7 Bankruptcy Checklist

Prior to Filing for Chapter 7

  1. Consult with a Bankruptcy Attorney
  2. Gather Financial Documents
  3. Attend Credit Counseling
  4. Complete Means Test
  5. Decide on Exemptions

Dischargeable Debts under Chapter 7 Bankruptcy

  • Credit Card Debt
  • Dishonored Checks
  • Medical Bills
  • Money Owed Under
  • Lease Agreements (Past Due Rent)
  • Social Security
  • Overpayments
  • Unsecured Debt
  • Utility Bills
  • Veteran Assistance Loans

Post Filing for Chapter 7

  1. Automatic Stay
  2. 341 Meeting of Creditors
  3. Financial Management Course
  4. Asset Liquidation
  5. Debt Discharge
  6. Rebuilding Credit
  7. Follow-Up with an Attorney

Non-Dischargeable Debts under Chapter 7 Bankruptcy

  • Alimony
  • Child Support
  • Court Fines and Penalties
  • Homeowners Association Fees
  • Personal Injury Involving DUI
  • Student Loans
  • Taxes

Our Expert Chapter 7 Bankruptcy Attorneys

Our seasoned team brings extensive expertise to filing Chapter 7 bankruptcy in Michigan. With a commitment to delivering tailored solutions and compassionate support, we have successfully guided numerous clients through the complexities of Chapter 7 proceedings.


Backed by over 30 years of experience, our firm has earned a reputation for excellence. We understand that each client has a unique situation, and our knowledgeable attorneys apply a personalized approach to address their specific financial challenges.

FAQs on Chapter 7 in Michigan

Can I Keep Any Property If I File for Chapter 7 Bankruptcy?

Yes, you can typically keep certain property through bankruptcy exemptions. In Michigan, exemptions protect items such as your primary residence, personal belongings, and retirement accounts. Exemptions vary, so consulting with a bankruptcy attorney helps you understand which assets are safeguarded.

How Long Does the Chapter 7 Bankruptcy Process Take in Michigan?

The Chapter 7 bankruptcy process in Michigan typically takes about 4 to 6 months, from filing the petition to issuing the discharge. However, the timeline can be influenced by the complexity of your case, court schedules, and other factors.

Will Chapter 7 Eliminate All My Debts?

Chapter 7 can discharge many unsecured debts, such as credit card debt, medical bills, and personal loans. However, certain debts, including student loans, recent taxes, child support, and alimony, are generally not dischargeable.

Can I File for Chapter 7 Bankruptcy If I Have a High Income?  

Eligibility is determined by the means test, comparing your income to the median income in Michigan. If your income is above the median, you may still qualify by passing the means test or demonstrating “special circumstances” that justify your expenses.

Will Filing for Chapter 7 Bankruptcy Ruin My Credit Forever?

While bankruptcy has a negative impact on your credit, it provides a fresh financial start. Many individuals begin rebuilding their credit shortly after receiving their discharge. Over time, responsible financial habits can lead to credit improvement. It’s important to manage credit responsibly and demonstrate positive financial behavior.