Warren, Michigan
Chapter 7 Lawyer
One of the Best Bankruptcy Attorneys in Warren, MI
Office Location
30800 Van Dyke Ave
Warren, MI 48093
Monday – Friday : 9:00 am – 5:00 pm
Saturdays : 9:30am – 11:30 by phone only
In office appointments as late as 6:30 on Wednesday. We offer over phone late night appointments Mon-Thur
Highly Recommended
Get a Free Consultation
Are You Drowning in Debt and Struggling to Make Ends Meet? It May Be Time to Consider Filing for Chapter 7 Bankruptcy.
Frego Law, located in Warren, Michigan, specializes in Chapter 7 bankruptcy cases. With their expertise and knowledge of the legal system, they can guide you through the process and help you achieve a fresh start financially.
If you’re tired of the constant stress and pressure of overwhelming debt, filing for Chapter 7 bankruptcy can provide the relief you need. Frego Law understands the challenges you’re facing and is dedicated to helping individuals like you regain control of their finances.
Contact Frego Law today to schedule a consultation and take the first step towards a brighter financial future. Don’t let debt hold you back any longer – make the decision to change your life today!
Chapter 7 Bankruptcy Explained
Chapter 7 bankruptcy is one of the most common forms of bankruptcy chosen by many people seeking relief from overwhelming debt.
One of the primary benefits of Chapter 7 bankruptcy is the discharge of unsecured debts. Unsecured debts are those that are not backed by collateral, such as credit card debts, personal loans, and medical bills. Through Chapter 7, these debts can be wiped out, giving the debtor a chance to rebuild their financial situation.
Forty-six percent of bankruptcies are related to medical bills. [1]
To qualify for Chapter 7 bankruptcy, the debtor must meet specific criteria, including passing the means test. The means test compares the debtor’s household income to the median income in their area. If the debtor’s income falls below the median income, they generally qualify for Chapter 7.
Once the debtor qualifies for Chapter 7, they will need to gather all necessary financial information and complete the necessary paperwork. This includes providing details about their assets, income, expenses, debts, and any recent financial transactions.
After the paperwork is completed, a bankruptcy petition is filed with the local bankruptcy court. The debtor will also need to attend a meeting of creditors, also known as a 341 meeting, where a bankruptcy trustee will review their financial affairs and any potential non-exempt assets. In most cases, Chapter 7 bankruptcies are considered a “no-asset” case, meaning the debtor does not have any non-exempt assets that can be sold to repay creditors.
Once the bankruptcy court approves the Chapter 7 paperwork and the meeting of creditors is concluded, the debtor will generally receive a discharge of their unsecured debts.
By the end of 2021, 401,293 Americans had filed for bankruptcy. As of March 2022, over 89,000 have filed. [2]
Benefits of Filing for Chapter 7 Bankruptcy in Warren, Michigan
One benefit of Chapter 7 bankruptcy is the ability to stop collection efforts and creditor harassment. Once the bankruptcy process begins, an automatic stay is issued, halting any collection actions, lawsuits, wage garnishments, or phone calls from creditors.
This stay provides individuals with a much-needed respite from the constant pressure and allows them to focus on rebuilding their financial situation.
Chapter 7 bankruptcy can also help individuals protect their assets. Filing for bankruptcy does not necessarily mean losing everything. In Michigan, individuals can take advantage of bankruptcy exemptions to protect certain assets, such as a primary residence, a vehicle, household goods, and other essential items.
Unlike other forms of bankruptcy, such as Chapter 13, which involves a repayment plan, Chapter 7 typically lasts only a few months.
Filing for Chapter 7 bankruptcy can provide individuals with an opportunity to rebuild their credit over time. While it is true that bankruptcy will negatively impact one’s credit score initially, it also eliminates a significant amount of debt.
Qualifications and Requirements for Filing for Chapter 7 Bankruptcy in Warren, Michigan
In addition to the income requirements, individuals must also receive credit counseling from an approved agency within 180 days before filing for Chapter 7 bankruptcy. This counseling is intended to provide individuals with a better understanding of their financial situation and explore alternative options before resorting to bankruptcy.
The certificate of completion obtained from the counseling agency needs to be filed with the bankruptcy court as part of the required paperwork.
When filing for Chapter 7 bankruptcy, one must prepare and submit various forms and documentation. These include a bankruptcy petition, a detailed schedule of assets and liabilities, a statement of financial affairs, proof of income, a list of all creditors and their respective claims, as well as any leases or contracts that are still active.
Individuals who wish to file for Chapter 7 bankruptcy in Warren, Michigan, are required to attend a meeting of creditors, also known as a 341 meeting. During this meeting, the bankruptcy trustee, assigned to oversee the case, will ask questions about your financial affairs and verify the accuracy of your bankruptcy forms.
It is important to understand that not all types of debts can be discharged through Chapter 7 bankruptcy. Debts such as tax obligations, student loans, child support, and certain types of fines and penalties may not be eligible for discharge.
Are There Exemptions when Filing Chapter 7 Bankruptcy?
Exemptions are provisions in bankruptcy law that allow individuals to keep certain types of property despite filing for bankruptcy.
Some common exemptions under Michigan state law include:
- Homestead Exemption: This exemption protects equity in a primary residence up to a certain dollar amount. The homestead exemption allows individuals to hold onto their homes and continue living in them, even after filing for bankruptcy.
- Vehicle Exemption: The state of Michigan allows individuals to exempt a certain value of their motor vehicles. This exemption can ensure that individuals are able to retain their vehicles necessary for transportation to work and other essential activities.
- Personal Property Exemptions: Michigan law provides exemptions for household goods, furniture, appliances, clothing, and other essential personal items up to a certain value. These exemptions enable individuals to maintain their essential possessions during the bankruptcy process.
- Retirement Accounts: In Michigan, retirement accounts such as IRAs, 401(k)s, and pensions are generally protected from being liquidated in bankruptcy. This exemption safeguards individuals' future financial security.
- Tools of the Trade: Warren residents who rely on specific tools and equipment to earn a living may be able to exempt those tools from being sold in bankruptcy proceedings. This exemption ensures that individuals can continue working and supporting themselves after their bankruptcy is complete.
State exemption laws vary, and it is recommended to consult with our experienced bankruptcy attorney to understand and maximize the available exemptions in your specific situation.
Guidelines for Preparing to File Chapter 7 Bankruptcy
- Incurring New Debt: It may be tempting to use credit cards or take out personal loans to make ends meet before filing for bankruptcy. However, incurring new debt shortly before filing can be seen as fraudulent and those debts may not be dischargeable.
- Transferring Assets: Transferring property or assets to family members or friends with the intention of shielding them from the bankruptcy process is a red flag. Such transfers can be considered fraudulent, and the bankruptcy trustee may investigate these actions.
- Repaying Family or Friends: While it may be understandable to want to repay a debt owed to a family member or close friend, prioritizing these repayments over other debts can raise concerns in bankruptcy proceedings. Repaying a debt to an insider within one year before filing can be seen as preferential treatment.
- Liquidating or Closing Retirement Accounts: As mentioned earlier, retirement accounts are generally protected in bankruptcy. In an attempt to manage debt or avoid losing assets, some individuals may consider liquidating or closing these accounts. However, doing so can have severe consequences, including tax implications and potential loss of financial security. It is best to leave retirement accounts untouched and consult with our experienced bankruptcy lawyers to understand how they can be safeguarded.
- Lying or Concealing Financial Information: Honesty is critical when filing for bankruptcy. Providing false or incomplete information and concealing assets can result in severe consequences, including the dismissal of your case and potential criminal charges. Disclose all your financial information accurately and work closely with your bankruptcy attorney to ensure a smooth and transparent process.
Personal and business bankruptcy filings rose 10 percent in the twelve-month period ending June 30, 2023, compared with the previous year. [3]
Benefit of Hiring a Chapter 7 Bankruptcy Lawyer in Warren, Michigan
- Expertise in Chapter 7 Bankruptcy Laws: Our Chapter 7 bankruptcy lawyers specialize in the specific rules and procedures of the Chapter 7 bankruptcy process.
- Reduction of Stress and Anxiety: By hiring our Chapter 7 bankruptcy lawyers, you can unload some of that burden onto a professional. We will handle the tedious paperwork, communicate with creditors on your behalf, and represent your best interests during meetings and court hearings. This alleviates your stress and allows you to focus on rebuilding your financial future.
- Protection from Creditor Harassment: One of the most challenging aspects of being in debt is constant harassment from creditors. We can put an end to these harassing calls and letters. Once you retain one of our lawyers, creditors must communicate with us directly, providing you with peace of mind and relief from relentless collection efforts.
- Maximizing Debt Discharge: Chapter 7 bankruptcy allows for the discharge of certain debts, providing you with a fresh financial start. However, not all debts are eligible for discharge, and navigating this process can be complex. We will review your financial situation, identify which debts can be discharged, and help maximize the debt relief available to you.
- Minimization of Mistakes and Errors: Filing for bankruptcy involves a lot of paperwork and adherence to strict deadlines. Any mistakes or errors in this process can result in delays or even the dismissal of your case. By working with our Chapter 7 bankruptcy lawyers in Warren, Michigan, you reduce the risk of making costly errors. We will ensure that all required documentation is accurately completed, submitted on time, and meet the necessary legal standards.
ARe You Drowning in Debt and Looking for A Fresh Start? It's Time to Take Control of Your Financial Future!
Don’t wait any longer. Contact Frego Law today to schedule a consultation and take the first step towards a debt-free future. Let our experienced bankruptcy attorneys in Warren help you navigate the Chapter 7 process and provide you with the fresh start you deserve. Call us now!
Sources:
[1] Gupta, R. (2023, March 24). Personal Bankruptcy Statistics for 2023: States, Causes & Cost. FinMasters. https://finmasters.com/personal-bankruptcy-statistics/
[2] Bankruptcy Rates by State. (2022, August 29). Investopedia. https://www.investopedia.com/bankruptcy-rate-by-state-5188436
[3] Bankruptcy Filings Rise 10 Percent. (2023, July 31). United States Courts. https://www.uscourts.gov/news/2023/07/31/bankruptcy-filings-rise-10-percent
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
Office Location
30800 Van Dyke Ave
Warren, MI 48093
Monday – Friday : 9:00 am – 5:00 pm
Saturdays : 9:30am – 11:30 by phone only
In office appointments as late as 6:30 on Wednesday. We offer over phone late night appointments Mon-Thur