Seglund Gabe Pawlak & Groth, PLC

Conveniently located in Wixom and Bloomfield Hills

  • Main office

    28345 Beck Road Suite 301 Wixom, Michigan 48393
    Phone: 248.869.0030
  • satellite office

    (by appointment only)
    41000 Woodward Avenue
    Suite 350 East
    Bloomfield Hills, MI 48304

What Is Chapter 7 Bankruptcy?

A Chapter 7 bankruptcy is a liquidation bankruptcy that allows a person to discharge all of their dischargeable debts and get a fresh start.

What Debts Are Typically Discharged By A Chapter 7 Bankruptcy?

The debts that are typically discharged by a Chapter 7 bankruptcy include all unsecured debts, such as medical bills and credit cards. Secured debt with a security interest, such as a vehicle or home mortgage can be discharged, but the creditor would still have the right to repossess those types of assets.

Is There Anything That Is Not Dischargeable In A Chapter 7 Bankruptcy?

Child support and alimony are not dischargeable in a Chapter 7 bankruptcy. Also some taxes and debts for education are not dischargeable in a Chapter 7 bankruptcy.

Will I Lose All Of My Property If I File For A Chapter 7 Bankruptcy?

A person will typically not lose all of their property if they file for a Chapter 7 bankruptcy. Most people who file a Chapter 7 bankruptcy are able to keep all of their personal possessions. The exemptions are fairly generous, however a debtor would need to discuss his/her particular situation with a Chapter 7 lawyer to determine what assets are not protected.

What Are The Requirements To Be Eligible To File For Chapter 7 Bankruptcy?

The main requirement to qualify for a Chapter 7 bankruptcy is the level of the debtor’s income. In a Chapter 7 bankruptcy, a means test calculation is used in order to determine the amount of disposable income. Currently, a debtor with no minor children who earns $47,800 per year or less will qualify for a Chapter 7 bankruptcy.

What Are The Main Differences Between A Chapter 7 Bankruptcy And A Chapter 13 Bankruptcy?

A Chapter 7 bankruptcy is a liquidation bankruptcy designed to wipe out your general unsecured debts such as credit cards and medical bills. To qualify for Chapter 7 bankruptcy, you must have little or no disposable income. If your assets are exempt under the bankruptcy code, your creditors receive nothing. Thus, a Chapter 7 bankruptcy is typically for low-income debtors with little or no assets who want to get rid of their unsecured debts.

A Chapter 13 bankruptcy, commonly referred to as a reorganization bankruptcy, is for debtors with regular income who can pay back a portion of their debts through a repayment plan. If you earn too much money to qualify for a Chapter 7 bankruptcy, you may have no choice but to file a Chapter 13 bankruptcy. The payment plans usually last anywhere from three to five years. A Chapter 13 bankruptcy allows people to get caught up on missed monthly mortgage or car payments, which is not available in a Chapter 7 bankruptcy.

How Would You Advise Someone Who Wants To File A Chapter 7 Bankruptcy Without An Attorney?

I would advise against someone wanting to file a Chapter 7 without an Attorney because it takes careful understanding of the legal issues. Some of the issues an attorney can help you with your case involve whether to file a bankruptcy petition, advise you under which chapter to file, advise you on whether your debts can be discharged, advise you on whether you will be able to keep your home, car, or other property after you file, help you complete and file forms and assist you with most aspects of your bankruptcy case. Therefore, there are many pitfalls with potentially harsh consequences for the unrepresented debtor.

What Are Some Things People Should Know About The Chapter 7 Bankruptcy?

You can expect to receive your discharge in 60 to 90 days after filing a Chapter 7 bankruptcy and meeting with the court. However the process may take longer if objections are filed by a party in interest such as a creditor.

You can be rejected for a discharge in Chapter 7 bankruptcy if you fail to keep adequate financial records, cannot explain your loss of assets, or commit perjury.

You cannot discharge all outstanding debt, including but not limited to, alimony, child support, some taxes, debts for death or personal injury caused by your motor vehicle, and debts for injury to another person,

For more information on Chapter 7 Bankruptcy In Michigan, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (248) 869-0030 today.

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