Get a Fresh Start on Your Finances—Chapter 7

Get rid of your debt

Chapter 7 bankruptcy in is the most straightforward form of bankruptcy and it essentially wipes your financial slate clean. It can be a good option if you—

• Are unable to pay your debts
• Have no debts with co-signers
• Face potential suits from creditors

Attorneys at the Law Offices of David W. Brown, PLLC in Lapeer, MI have handled thousands of Chapter 7 cases and can help you gain a fresh start, too.

The Chapter 7 process

Qualification

To qualify for Chapter 7, you must pass a means test. If your income falls below the median income for families in Michigan, based on U.S. Census Bureau statistics, you are eligible. If you earn more than this median income, the court considers the following:

• Your income over the past six months
• Mortgage payments
• Car payments
• Back taxes due
• Child support due
• School expenses up to $1,650 per year

If after deducting these expenses, you can still pay $100 a month to creditors, you will not be able to file under Chapter 7 and must file under Chapter 13 instead.

Filing Chapter 7 Bankruptcy in Pontiac

The process begins with filing the petition, schedules, and a statement of financial affairs with the U.S. Bankruptcy Court for the Eastern District of Michigan. To fill out the forms, you must also provide—

• A list of your creditors and the amount of money you owe them
• Your income’s source, amount, and frequency
• A list of all your property
• A detailed list of your monthly living expenses

After you have filed for bankruptcy, your creditors cannot try to collect directly from you. Anyone you owe has to show the bankruptcy judge, after a hearing, that they have cause to continue with collection.

Michigan exemption schemes

Under Chapter 7, certain assets are exempt from sale by your court-appointed bankruptcy trustee. The attorneys at the Law Offices of David W. Brown, PLLC help you determine which of Michigan’s two exemption schemes suits your property and assets. Depending on your situation, you may be able to keep your home and your car.

Your trustee sells your nonexempt assets to pay your creditors. In most Chapter 7 cases, there are no nonexempt assets to sell.

341 Hearing

Usually between 20-40 days after you file your petition, your trustee holds a first meeting of creditors, called a 341 meeting. You must attend that meeting. Your trustee can ask you questions under oath about your property and debts. So can your creditors.

3,000 Chapter 7 cases successfully resolved

The Law Offices of David W. Brown, PLLC offers you experienced bankruptcy litigators who know how to bring financial peace of mind to their clients. In particular, the firm takes on cases that will most likely go to trial.

Click here to learn more from our satisfied clients.

Nothing is hopeless. Debt relief is just a call or click away when you contact the Law Offices of David W. Brown, PLLC.

The firm offers payment plans and flexible scheduling to meet your needs. Well known in the Lapeer community, the Law Offices of David W. Brown, PLLC has the diligent work ethic and specific bankruptcy law experience to help you find light at the end of the tunnel.