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23843 Joy Rd
Dearborn Heights, MI 48127
Monday: 9 AM-5:15 PM
Tuesday: 9 AM-5:15 PM
Wednesday: 9 AM-5:15 PM
Thursday: 9 AM-5:15 PM
Friday: 9 AM-5:15 PM
Saturday: 9 AM-12 PM
Sunday: Closed
We offer late night appointments as late as 6:30 by phone or in person Mon-Thur.
If you’re facing wage garnishment, foreclosure, constant creditor calls, or simply can’t keep up with your bills, bankruptcy might be the solution you need to regain control of your finances.
At Frego & Associates, we help individuals and families in Livonia find real relief through Chapter 7 and Chapter 13 bankruptcy.
With decades of experience in bankruptcy law and a compassionate, judgment-free approach, we will guide you through every step of the process, from understanding your options to filing and final discharge.
You don’t have to face this alone. Let us help you get the fresh start you deserve. Call Frego & Associates today at 313-724-5088 for a free, confidential consultation.
In Livonia, the most common filing options for individuals and businesses are Chapter 7, Chapter 13, and Chapter 11. Each serves a unique purpose depending on the nature of the debt, the debtor’s income, and their long-term financial goals.
Chapter 7 is the most commonly filed form of bankruptcy for individuals. Known as “liquidation bankruptcy,” it is designed for people with limited income who cannot pay back their unsecured debts, such as credit cards, personal loans, and medical bills.
Under Chapter 7, a bankruptcy trustee is appointed to review the debtor’s assets. Non-exempt assets, if any, may be sold to repay creditors, although many filers are able to retain all or most of their property through exemptions.
This process typically takes a few months from start to finish and results in a discharge of qualifying debts. However, not everyone qualifies for Chapter 7; eligibility is determined by a means test that evaluates income and expenses.
Chapter 13 is a reorganization bankruptcy available to individuals with a regular source of income. Unlike Chapter 7, it allows debtors to retain their property while repaying some or all of their debts over a period of three to five years through a court-approved repayment plan.
This type of bankruptcy is particularly useful for individuals who are behind on mortgage or car payments and wish to catch up and avoid foreclosure or repossession.
Chapter 13 also provides an opportunity to restructure certain debts, possibly reduce interest rates, and, in some cases, discharge secondary mortgages or eliminate unsecured debt at the end of the repayment period.
While Chapter 11 is typically associated with businesses, it is also available to individuals whose debts exceed the limits allowed under Chapter 13.
Chapter 11 is a complex form of bankruptcy primarily designed to enable businesses to continue operations while restructuring their debt. It involves developing a reorganization plan that must be approved by the court and accepted by creditors.
For businesses in Livonia, Chapter 11 can provide a lifeline by allowing continued operations while working to reduce debt, provide debt negotiation, or sell assets.
This form of bankruptcy is most appropriate for high-debt individuals such as business owners, real estate investors, or those with significant personal liabilities. Chapter 11 may be a viable alternative to liquidation or a Chapter 13 plan.
Filing for bankruptcy can feel like an overwhelming process, but understanding the steps involved can help ease some of the uncertainty. In Livonia, the bankruptcy process generally follows the same procedure as it does throughout Michigan.
Whether you’re filing for Chapter 7, Chapter 13, or Chapter 11, the process involves the following key steps:
Before filing for bankruptcy, individuals must complete a credit counseling course with an approved agency. This counseling is designed to explore alternatives to bankruptcy and provide insight into managing debt.
The completion certificate must be filed with the bankruptcy petition. The credit counseling session is typically brief and can be completed online or over the phone.
The next step is to file a bankruptcy petition with the U.S. Bankruptcy Court in the district where the debtor resides. The petition includes detailed financial information such as income, expenses, assets, and liabilities.
Along with the petition, the debtor must submit several forms, including schedules of assets and liabilities, a statement of financial affairs, and a list of creditors.
Once the petition is filed, an automatic stay is put in place, which immediately halts most collection actions, including foreclosure, repossession, wage garnishments, and creditor harassment. This gives the debtor relief from the pressure of dealing with creditors while the bankruptcy case is processed.
About a month after the bankruptcy petition is filed, the debtor will attend a 341 meeting (also known as the meeting of creditors). This is not a court hearing but a meeting where the bankruptcy trustee will ask the debtor questions about their financial situation.
Creditors have the right to attend and ask questions, but they rarely do. The trustee’s role is to verify the information provided in the petition and ensure there are no fraudulent claims.
For Chapter 13 and Chapter 11 cases, the debtor will also need to submit a repayment plan outlining how debts will be paid off over time. The trustee will review the plan and may suggest modifications, but ultimately it must be confirmed by the court.
In Chapter 13 and Chapter 11 cases, the bankruptcy court will review the debtor’s proposed repayment plan. For Chapter 13, this plan typically lasts 3 to 5 years, during which the debtor makes regular payments to the trustee, who then distributes the payments to creditors.
If the plan is accepted by the court and creditors, the debtor will follow the plan’s terms and eventually receive a discharge of qualifying debts at the conclusion of the plan period.
In Chapter 7, there is no repayment plan, as most unsecured debts are discharged. However, the bankruptcy trustee may liquidate non-exempt assets to repay creditors. The goal is for the debtor to be granted a discharge order, which releases them from personal liability for certain debts.
The final stage of the bankruptcy process is the discharge of debts. For Chapter 7, this typically occurs within 3 to 6 months after filing, once the trustee has completed the liquidation of assets. For Chapter 13 and Chapter 11 cases, the discharge is granted after the debtor successfully completes the repayment plan.
A discharge is a court order that releases the debtor from personal liability for certain debts, meaning the debtor is no longer legally obligated to pay them.
Not all debts are dischargeable in bankruptcy. Certain obligations, such as student loans, child support, alimony, and most tax debts, generally cannot be eliminated through bankruptcy.
After receiving a discharge, the debtor will begin the process of rebuilding their credit. While bankruptcy can stay on a credit report for up to 10 years, many individuals find that their financial situation improves after filing, especially if they follow a disciplined budget and savings plan.
Additionally, the bankruptcy process offers a path toward debt relief, allowing individuals to regain control over their finances and work toward a more secure future.
Bankruptcy impacts credit but doesn’t ruin it permanently. With time, you can rebuild your credit score after filing.
In Livonia, you can protect many assets, like your home and car, through Michigan’s bankruptcy exemption laws.
Bankruptcy law has provisions for anyone facing overwhelming debt, whether from medical bills, job loss, or divorce.
You can file for bankruptcy multiple times, though there are waiting periods between filings.
You don’t need to be in major debt to file for debt relief. Bankruptcy can help protect you from future financial struggles.
Michigan bankruptcy law can provide relief from many types of debt, but not all debts are treated the same way. Here’s a breakdown of how different debts are impacted:
The Means Test is used to determine eligibility for Chapter 7 bankruptcy, which allows for debt relief from most unsecured debts. The test compares your income to the median income in Michigan for a household of your size.
If your income is below the median, which for the state of Michigan currently stands at $71,149 [1] , you may qualify for Chapter 7. If your income exceeds the median, you may need to file under Chapter 13 instead, which involves a repayment plan.
For Chapter 13, eligibility isn’t based on the Means Test but on your ability to make payments through a repayment plan.
Filing for bankruptcy in Livonia requires careful preparation to ensure a smoother process and better outcomes.
Here’s how to get ready:
Before filing, collect all necessary financial documents. These typically include:
Tax returns (last two years)
Accurate documentation helps your attorney assess your situation and complete the required bankruptcy forms correctly.
Understand which debts are most urgent like mortgage or car payments, and avoid paying off unsecured debts like credit cards right before filing. Doing so may be considered a “preferential payment” and could complicate your case.
Avoid transferring property to friends or relatives before filing. This can be seen as an attempt to hide assets and may jeopardize your bankruptcy.
A bankruptcy discharge is the final step in the bankruptcy process for individuals in Livonia, and it provides the legal relief many debtors are seeking. Once granted by the court, a discharge eliminates your legal obligation to repay most unsecured debts, giving you the opportunity to rebuild your financial life.
In simple terms, a discharge releases you from personal liability for certain debts. That means creditors can no longer legally pursue you for collection. There will be no more phone calls, letters, wage garnishments, or lawsuits for those debts.
Once the bankruptcy court in Michigan issues your discharge (typically a few months after filing for Chapter 7, or after completing the repayment plan in Chapter 13), the following happens:
For residents of Livonia, this means a true fresh start. You will be free from most of the burdens that led you to bankruptcy in the first place.
After your discharge, creditors included in the bankruptcy cannot contact you to collect the discharged debts. If they do, it’s a violation of the discharge order, and you can take legal action. Some exceptions apply. For example, if a debt wasn’t listed in your bankruptcy or is non-dischargeable, creditors may still contact you about those specific obligations.
Are you overwhelmed by debt, facing constant collection calls, or falling behind on bills? You are not alone, and you are not without options. At our Livonia office, we help individuals and families break free from the burden of debt through trusted, proven bankruptcy solutions.
As Michigan’s Largest Bankruptcy Filer for the Past 20 Years, we’ve filed over 40,000 bankruptcy cases, helping people just like you regain control of their finances and start fresh. Whether it’s Chapter 7 or Chapter 13 bankruptcy, our bankruptcy law attorney will guide you through every step of the process with compassion and clarity.
What We Offer:
Backed by a Better Business Bureau accreditation and ranked among Michigan’s top attorneys, we’ve earned a reputation built on trust, results, and real relief.
Don’t let debt problems define your future. Contact us today for your free Livonia bankruptcy consultation at 313-724-5088 and take the first step toward peace of mind. A fresh start is closer than you think.
Source:
[1] Research, N. (2025, February 25). Michigan Median household income by age. Neilsberg Research. https://www.neilsberg.com/insights/michigan-median-household-income-by-age/
Received Accolades:
206-2010, 2012, 2014-2021
American Bankruptcy Institute
Certified as a Bankruptcy Specialist by ABC
National Association of Consumer Bankruptcy Attorneys
Better Business Bureau
23843 Joy Rd
Dearborn Heights, MI 48127
Monday: 9 AM-5:15 PM
Tuesday: 9 AM-5:15 PM
Wednesday: 9 AM-5:15 PM
Thursday: 9 AM-5:15 PM
Friday: 9 AM-5:15 PM
Saturday: 9 AM-12 PM
Sunday: Closed
We offer late night appointments as late as 6:30 by phone or in person Mon-Thur.