Lansing Bankruptcy Lawyer

Frego & Associates has filed more consumer bankruptcy cases than any other Michigan firm in its founder's career, representing debtors in every division of the Western District of Michigan Bankruptcy Court, including Lansing filers in the WDMI's Ingham, Eaton, and Clinton county service area. Free consultation, remote filing, and evening phone appointments.

Lansing Bankruptcy Attorney

Lansing-area households file thousands of bankruptcies each year in the Western District of Michigan. According to bkdata.com, the WDMI recorded 3,837 bankruptcy filings in 2025, a five-year high. Of those, 2,575 were Chapter 7, 1,250 were Chapter 13, and 9 were Chapter 11.

Figures were pulled April 2026, with three additional Chapter 12 and other-chapter filings rounding out the total. Filings have climbed each year since 2022, when the district recorded only 2,821 cases, a 36% increase over three years driven by rising consumer credit-card balances and post-moratorium medical and housing debt.

Frego & Associates has represented Michigan bankruptcy filers for more than three decades. Our founder, James P. Frego II, is a Certified Consumer Bankruptcy Specialist, and the firm's partners have handled thousands of Chapter 7 and Chapter 13 cases across every Michigan bankruptcy division.

For Lansing clients, the entire process (from consultation to discharge) can be handled remotely, or in person at our Flint office about 50 miles east of Lansing on I-69.

"In our Lansing-area caseload, roughly four out of five individuals file Chapter 7 (the 'fresh start' chapter) because their income falls below the Michigan median family income threshold and they don't have property outside of what Michigan or federal exemptions already protect.

Chapter 13 usually enters the picture when a client needs to save a home from foreclosure or catch up on a vehicle they can't afford to lose. The trustee assignments we see most often for mid-Michigan filers are Kelly Hagan, Thomas McDonald, and Barbara Foley, and we know each of their documentation preferences."

— James P. Frego II, Founder & Managing Partner

What Is Bankruptcy?

Bankruptcy is a legal process administered by the federal courts under Title 11 of the United States Code. It allows individuals and businesses who cannot repay their debts to either discharge those debts entirely or restructure them under court supervision, while protecting essential assets through statutory exemptions.

Filing a petition triggers the automatic stay under 11 U.S.C. § 362, which immediately halts most creditor collection activity, including wage garnishments, lawsuits, bank levies, repossessions, and foreclosure sales.

For Michigan residents, petitions are filed in one of two federal districts. Lansing, East Lansing, Mason, Holt, Haslett, Okemos, and the rest of the capital region fall within the Western District of Michigan, with the Lansing courthouse located at 315 W Allegan Street, Room 101.

What Are the Types of Bankruptcy in Lansing?

Three chapters cover the overwhelming majority of individual and small-business filings in mid-Michigan. The right chapter depends on your income, your assets, the type of debt you're trying to resolve, and whether you want to keep property that secures a loan (like a home or vehicle).

Chapter 7 Bankruptcy

Chapter 7, the "liquidation" or "fresh start" chapter, is the most common filing for individuals in the WDMI. Of the 3,837 WDMI filings in 2025, 67% (2,575) were Chapter 7. For a Lansing-focused breakdown, see our Lansing Chapter 7 bankruptcy page.

To qualify, your current monthly income (averaged over the six months before filing) must be below the Michigan median for your household size, or you must pass the second half of the means test by showing insufficient disposable income after allowable expenses.

Most unsecured debts (credit cards, medical bills, older utility balances, personal loans, and deficiency balances after repossession) are discharged. Secured debts (mortgages, car loans) are treated separately: the filer keeps the property only if payments continue, typically via a reaffirmation agreement.

From petition to discharge order, a straightforward Chapter 7 takes 3 to 6 months under 11 U.S.C. § 727.

Chapter 13 Bankruptcy

Chapter 13 is the repayment chapter. It's the right choice when a Lansing filer has regular income and wants to keep a home, vehicle, or other secured property that's behind on payments.

The filer proposes a 3-year or 5-year plan (length determined by income vs median) that catches up mortgage arrears, pays priority debts like recent taxes and domestic support, and pays unsecured creditors whatever disposable income remains. At plan completion, the court enters a discharge under 11 U.S.C. § 1328. Our guide to Chapter 13 documentation walks through what we need at intake.

Chapter 13 accounted for 33% (1,250) of WDMI filings in 2025, up from just 17% in 2021. The share has grown as Michigan home values and vehicle prices have pushed more debtors to protect significant equity through a repayment plan rather than risk liquidation.

Chapter 11 Bankruptcy

Chapter 11 is primarily a business reorganization chapter, though individuals with debt levels above the Chapter 13 caps occasionally file. Subchapter V, created by the Small Business Reorganization Act of 2019, streamlines Chapter 11 for small businesses. The temporary $7.5 million debt limit lapsed in June 2024, and the eligibility cap is now about $3.42 million (CPI-adjusted), though Congress has proposed restoring the higher figure.

Only 9 Chapter 11 cases were filed in the WDMI in 2025. Plan terms typically run 3 to 5 years, though complex cases can take longer to confirm.

How We Serve Lansing Clients

Frego & Associates does not operate a physical office in Lansing. The nearest Frego office is in Flint, approximately 50 miles east on I-69. We serve Lansing-area clients through three channels:

• Remote consultation and filing. Intake by phone or Zoom, electronically signed documents, and e-filed petitions. Most Lansing clients never need to travel.
• 341 meetings by video or phone. Since 2020, WDMI trustees have conducted most §341 meetings of creditors via Zoom or telephone, so Lansing clients rarely need to appear at the courthouse.
• In-person at our Flint office. If you prefer face-to-face, we're a 50-mile drive east. Evening phone appointments run until 6:30 PM Monday through Thursday to accommodate Lansing commuters.

What Our Bankruptcy Law Firm Will Do for You

A Frego & Associates engagement for a Lansing bankruptcy covers the full matter from intake through discharge:

• Review your complete financial picture (income, debts, assets, and two years of tax returns) and determine which chapter best fits your situation.
• Run the Chapter 7 means test against the current Michigan median family income table, which the U.S. Trustee Program updates periodically (typically effective November 1).
• Choose between Michigan (MCL 600.5451) and federal (11 U.S.C. § 522(d)) exemption sets to protect the maximum value of your property.
• Prepare and e-file your petition, schedules, statement of financial affairs, and means-test forms with the WDMI.
• Trigger the automatic stay and issue written notices to creditors and collection agencies to stop calls, garnishments, and foreclosure actions.
• Represent you at the §341 meeting of creditors, by Zoom, phone, or in person.
• Negotiate reaffirmation agreements for vehicles and homes you want to keep.
• Defend against trustee and creditor objections, including motions to dismiss, lift-stay motions, and nondischargeability actions under 11 U.S.C. § 523.
• Guide you through the required pre-filing credit counseling and post-filing debtor education courses.
• Obtain and deliver your final discharge order.

Which Debts Are Eliminated by Filing Bankruptcy in Lansing?

Most unsecured consumer debts are dischargeable in Chapter 7, and either discharged or significantly reduced in Chapter 13. The categories we see most often on Lansing filings:

• Credit card debt: fully dischargeable in Chapter 7 absent fraud or recent luxury purchases (11 U.S.C. § 523(a)(2)).
• Medical debt: fully dischargeable in Chapter 7. Note that medical liens attached to a specific settlement or property are treated as secured debt and may survive discharge.
• Personal loans and deficiency balances: dischargeable.
• Older utility and cell-phone balances: dischargeable.
• Older income tax debt: dischargeable only if the return was filed on time more than three years ago, assessed more than 240 days ago, and not the product of fraud.
• Debts from civil judgments: usually dischargeable, unless the underlying act was fraud, willful injury, or drunk driving.

What bankruptcy generally does NOT discharge:

• Most federal and private student loans (unless an undue-hardship discharge is granted).
• Domestic support obligations, including child support and alimony (§ 523(a)(5)).
• Recent tax debts and tax penalties.
• Criminal restitution, court fines, and most government-imposed penalties.
• Debts from intentional injury or DUI-related injury.

Which Assets Are Protected Under Michigan Bankruptcy Law?

Michigan filers can elect either the state exemption scheme (MCL 600.5451) or the federal scheme under 11 U.S.C. § 522(d). You cannot mix sets; you choose one or the other, and we run both at intake to see which protects more. For a deeper look at how the two schemes differ, see our guide on federal vs. Michigan bankruptcy laws.

Dollar caps on federal exemptions adjust every three years under 11 U.S.C. § 104; the federal figures above reflect the adjustment effective April 1, 2025, with the next federal adjustment due April 1, 2028. Michigan amounts reflect the State Treasurer's triennial CPI adjustment effective April 1, 2026 (a 10.89% increase); the next Michigan adjustment is due April 1, 2029.

What Are the Benefits of Filing Bankruptcy?

Every financial situation is different, but a few core benefits apply to almost every filer. For a broader overview, see our 7 key reasons Michigan residents file bankruptcy.

• Immediate relief through the automatic stay. Wage garnishments, collection calls, and lawsuits stop the moment you file.
• Discharge of most unsecured debt. Excluding cases that are dismissed or converted, individual debtors receive a discharge in more than 99% of Chapter 7 cases nationally, per the Administrative Office of the U.S. Courts.
• Foreclosure stop. A Chapter 13 filing halts a Michigan sheriff's sale up to the morning of the sale and lets you catch up mortgage arrears over up to 60 months.
• Repossession reversal. If your car has been repossessed but not yet sold, a Chapter 13 filing can often compel the lender to return it (act quickly, ideally within days of the repossession).
• Protection of retirement accounts. 401(k)s and IRAs are fully exempt under both Michigan and federal schemes.
• End the debt treadmill. One legal proceeding resolves all dischargeable obligations, rather than negotiating with each creditor individually.

Are There Bankruptcy Alternatives in Lansing?

Yes, and part of our intake process is advising when bankruptcy isn't the best fit. Alternatives we routinely discuss include:

• Debt negotiation and settlement: direct negotiation with credit card and medical creditors for lump-sum payoffs at 30 to 60% of balance. Works best when you have a lump sum available.
• Debt management plans through a nonprofit credit counseling agency (find an approved agency on the U.S. Trustee's list).
• Mortgage loan modification: through the servicer's loss-mitigation department or state Michigan programs. We sometimes file Chapter 13 defensively while a modification is pending.
• Michigan state-court wage-earner plan: Michigan courts can enter a state-level wage-earner order under Revised Judicature Act of 1961 (Act 236). This is rarely the right tool for insolvency, but can address a single garnishment.
• Do nothing: if all your income is "judgment-proof" (Social Security, VA benefits, certain pensions), bankruptcy may not be necessary; creditors cannot garnish exempt income.

How Do I File for Bankruptcy in Lansing?

1. Free consultation. Call (810) 424-1614 or schedule online. We review your financial picture, explain your options, and quote a flat fee for the engagement.
2. Gather documents. Two years of tax returns, six months of pay stubs, bank statements, a list of debts (creditor names, account numbers, balances), and a list of assets with estimated values. Our step-by-step document preparation guide covers everything we'll ask for.
3. Complete pre-filing credit counseling. A required 60-to-90-minute course from a U.S. Trustee-approved agency, usually taken online within a week.
4. We prepare and e-file your petition. With the WDMI. The automatic stay activates immediately upon filing.
5. Attend the §341 meeting. 5 to 15 minutes, typically by Zoom or phone for Lansing filers, 3 to 5 weeks after filing.
6. Complete post-filing debtor education. A second required course, taken online.
7. Receive your discharge. Chapter 7: 60 to 90 days after the §341 meeting. Chapter 13: at successful completion of your 3-to-5-year plan.

What Should You Expect After Filing Bankruptcy?

The impact on credit, housing, and future borrowing is more predictable than most filers expect:

• Credit scores often begin recovering within months. Most of the damage to your score happened during the delinquency leading up to filing; the discharge stops further damage and lets the clock start running.
• A bankruptcy can remain on a credit report for up to 10 years under the Fair Credit Reporting Act, which sets a single 10-year cap for all chapters. In practice, the credit bureaus typically remove a completed Chapter 13 after about 7 years as a matter of policy.
• You can typically qualify for an FHA mortgage 2 years after a Chapter 7 discharge and immediately in some Chapter 13 cases where the plan is current.
• Employment is protected. Under 11 U.S.C. § 525, employers cannot fire or discriminate against you solely because you filed.
• Retirement contributions resume unaffected. Your 401(k) and IRA were protected throughout.

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Lansing Bankruptcy: Frequently Asked Questions

What are the first steps after hiring a Lansing bankruptcy lawyer?

After you retain us, we gather your income, debts, assets, and two years of tax returns, run the Chapter 7 means test against the Michigan median-income tables, and review which bankruptcy exemptions protect the most property. Most Lansing clients complete the pre-filing credit counseling course online within a week. We then draft and e-file your petition with the U.S. Bankruptcy Court for the Western District of Michigan. The automatic stay under 11 U.S.C. § 362 stops creditor calls, wage garnishments, and foreclosures the moment the petition is filed.

What should I expect at the 341 meeting of creditors in Lansing?

The 341 hearing (governed by 11 U.S.C. § 341) is a 5-to-15-minute meeting with the Chapter 7 or Chapter 13 trustee, not a judge. For Lansing filers the meeting is typically conducted by Zoom or telephone; when held in person it takes place at the U.S. Post Office & Courthouse at 315 W Allegan St, Room 101, Lansing, MI 48933. The trustee verifies your identity, confirms the information in your petition, and asks routine questions about your assets and income. Your attorney attends with you.

How does the automatic stay protect Lansing residents?

The automatic stay under 11 U.S.C. § 362 is an immediate federal court order that takes effect the moment your petition is filed. It halts most collection activity: wage garnishments, bank levies, creditor calls, lawsuits, repossessions, and foreclosure sales. In Michigan, the stay can stop a sheriff's sale up to the morning of the sale. Certain actions (criminal proceedings, most domestic-support collections, and some tax audits) are not stayed.

What property can I keep under Michigan bankruptcy exemptions?

Michigan debtors can choose either the state exemption set (MCL 600.5451) or the federal set (11 U.S.C. § 522(d)). The Michigan homestead exemption protects up to $51,150 of equity in a primary residence, rising to $76,725 if the debtor or a dependent is 65+ or disabled, as adjusted for inflation effective April 1, 2026. Other common exemptions cover a motor vehicle, tools of the trade, household goods, most retirement accounts, and a wildcard amount. We run both sets at intake and choose whichever keeps more of your property.

How long does a bankruptcy case take for a Lansing filer?

A straightforward Chapter 7 case typically discharges debts in 3 to 6 months from filing to discharge order under 11 U.S.C. § 727. A Chapter 13 case runs 3 to 5 years because it includes a court-approved repayment plan under 11 U.S.C. § 1328. Chapter 11 timelines vary: the repayment plan itself usually spans 3 to 5 years, though plan confirmation is often reached within 6 to 12 months for small-business Subchapter V cases.

Do I have to travel to the Flint office to file bankruptcy from Lansing?

No. Frego & Associates handles the full consultation-to-discharge process remotely for Lansing-area clients. Intake is by phone or Zoom, documents are signed electronically, and the 341 meeting of creditors is typically conducted by Zoom or telephone for WDMI cases. If you prefer to meet in person, our Flint office at 1324 W Bristol Rd is approximately a 50-mile drive east of Lansing on I-69, and evening phone appointments run until 6:30 PM Monday through Thursday.

How much does it cost to file bankruptcy in Lansing?

Court filing fees set by the federal courts are $338 for Chapter 7, $313 for Chapter 13, and $1,738 for Chapter 11 (current fee schedule at uscourts.gov). Attorney's fees vary by case complexity. The typical flat-fee range for a standard no-asset Chapter 7 is $1,200 to $1,800 and for Chapter 13 is $4,000 to $5,000, with most of the Chapter 13 fee paid through the plan. We quote a firm flat fee at the free consultation; there are no hidden charges.

Get a Free Consultation From a Lansing Bankruptcy Lawyer

30+ years of Michigan bankruptcy experience. Remote intake and filing for Lansing clients. Evening phone appointments until 6:30 PM Monday through Thursday.

Call (810) 424-1614   Schedule Online

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Notice required by 11 U.S.C. § 528(a)(4).

Related Resources

• Lansing Chapter 7 Bankruptcy Lawyer
• Chapter 13 Bankruptcy in Michigan
• Chapter 11 Bankruptcy in Michigan
• All Michigan Office Locations & Service Areas
• Meet Our Bankruptcy Attorneys

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Attorney advertising. This page is for general information and is not legal advice. Reading or interacting with this page does not create an attorney-client relationship. Bankruptcy laws and statutory amounts change; please verify current figures with our office or with the cited federal and Michigan authorities. Prior results do not guarantee similar outcomes. This advertisement complies with Michigan Rules of Professional Conduct 7.1 and 7.2.