Frego & Associtates

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Dearborn Heights, Michigan

Chapter 7 Attorney

One of the Best Bankruptcy Attorneys in Dearborn, MI

Office Location

23843 Joy Rd
Dearborn Heights, MI 48127

Monday – Friday : 9:00 am – 5:00 pm
Saturdays : 9:30am – 11:30 in office or by phone

We offer late night appointments as late as 6:30 by phone or in person Mon-Thur.

Highly Recommended

Get a Free Consultation

Are you drowning in debt and searching for a way out? Look no further.

Frego Law, your trusted Chapter 7 lawyer in Dearborn Heights, Michigan, is here to guide you through the bankruptcy process and help you achieve financial freedom. With our expertise and years of experience, we understand the complexities of Chapter 7 and can provide you with the personalized support you need.

Imagine a life without the overwhelming burden of debt. With Frego Law by your side, you can eliminate your unsecured debts, such as credit card bills and medical expenses, and start fresh. Our team will work tirelessly to ensure a smooth and successful Chapter 7 bankruptcy filing, giving you the opportunity to rebuild your financial future.

Take the first step towards a debt-free life by contacting Frego Law today. Schedule your consultation with our Chapter 7 lawyer in Dearborn Heights, Michigan, and let us help you regain control of your financial situation. Don’t let debt hold you back any longer – call now!

Are you drowning in debt and searching for a way out? Look no further.

What is a Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a legal process that allows individuals and businesses to eliminate or discharge their debts and start fresh financially. It is one of the most common types of bankruptcy filings in the United States. 

In a Chapter 7 bankruptcy case, a debtor’s nonexempt assets are liquidated, meaning they are sold to repay creditors. 

One of the main advantages of filing for Chapter 7 bankruptcy is that it provides immediate debt relief from creditor harassment and collection efforts.

Once a bankruptcy petition is filed, an automatic stay goes into effect, preventing creditors from taking further action to collect on the debts. This stay also stops wage garnishments, foreclosure proceedings, and even halts pending lawsuits.

To qualify for Chapter 7 bankruptcy, debtors must pass the “means test,” which compares their monthly income to the median income in their state. If the debtor’s income is lower than the median, they automatically qualify for Chapter 7. If their income is higher, they will have to fulfill additional requirements to prove that they cannot afford to repay their debts.

During the Chapter 7 bankruptcy process, debtors are required to attend a “meeting of creditors” also known as a 341 meeting, where they are questioned by the bankruptcy trustee and any creditors who choose to attend. This meeting allows creditors to determine whether they believe the debtor should receive a discharge of their debts. 

Once the bankruptcy judge approves the bankruptcy paperwork and the debtor has completed all necessary requirements, they can receive a discharge of their debts. This means that they are no longer legally obligated to repay the debts included in the bankruptcy. 

Bankruptcies in the United States peaked in 2010, when 1.14 million Chapter 7 bankruptcies and 439,000 Chapter 13 bankruptcies were filed. These figures have since dropped to 229,703 and 149,077 respectively in 2022, despite the effects of the COVID-19 pandemic. [1]

What is a Chapter 7 Bankruptcy?

What are the Reasons to File for Chapter 7 Bankruptcy?

At the end of Q1 2023, housing-related debt topped $12.04 trillion and accounted for approximately 71% of household debt in the U.S. [2]

Do I Qualify for Chapter 7 Bankruptcy in Dearborn Heights, Michigan?

To qualify for Chapter 7 bankruptcy in Dearborn Heights, you must meet certain criteria. One of the key factors is your income. The bankruptcy laws implemented a means test to determine whether your income is low enough to qualify for Chapter 7.

This test compares your average monthly income over the past six months to the median household income in Michigan. If your income falls below the median, you automatically pass the means test and can proceed with a Chapter 7 filing.

If your income exceeds the median, you will need to proceed with further calculations to determine your eligibility. This involves deducting certain expenses and obligations to assess whether you have enough disposable income to repay your debts over a period of time.

If your disposable income is below a certain threshold, you may still qualify for Chapter 7. 

There are also limits on the amount of secured and unsecured debts you can have to qualify for Chapter 7. 

A 2023 CNBC survey found that 58% of Americans feel they live paycheck to paycheck. [2]

Do I Qualify for Chapter 7 Bankruptcy in Dearborn Heights, Michigan?

What Exemptions are Available When Filing Chapter 7 in Dearborn Heights, Michigan?

Just over 288,000 Americans filed Chapter 7 personal bankruptcy in 2021, which accounts for roughly 70% of all personal bankruptcies filed. [3]

Analysts predict that around 100,000 stores in the US alone will be forced to close by 2025 as more consumers stop buying in person and shop online. [4]

Steps to Take Before Filing for Chapter 7 Bankruptcy in Dearborn Heights, Michigan

More older Americans are filing for bankruptcy nowadays than 25 years ago. Older adults now also compose a greater percentage of all Americans filing for bankruptcy. [4]

The Benefits of Hiring a Dearborn Heights, Michigan Chapter 7 Lawyer

The 2018 study found that approximately 63.8% of pro se Chapter 7 filers obtained a discharge (compared with 94.1% of those represented by an attorney) [5]

The Benefits of Hiring a Dearborn Heights, Michigan Chapter 7 Lawyer

Frego Lawyers’ expertise, guidance, and protection of assets can help you achieve a successful bankruptcy discharge while minimizing stress and potential mistakes.

If you are considering filing for Chapter 7 bankruptcy in Dearborn Heights, seek the assistance of our experienced bankruptcy lawyers to guide you through the process. Don’t wait, call us today. 

Sources:

[1] Bankruptcy filings by chapter U.S. 2022 | Statista. (2023, January 30). Statista. https://www.statista.com/statistics/1118140/bankruptcy-filings-us-chapter/

[2] Cussen, M. P. (2023, June 15). Top 5 Reasons Why People Go Bankrupt. Investopedia. https://www.investopedia.com/financial-edge/0310/top-5-reasons-people-go-bankrupt.aspx

[3] Caporal, J. (2023, January 5). Chapter 7 Bankruptcy and Chapter 13 Bankruptcy Statistics. The Motley Fool. https://www.fool.com/the-ascent/research/personal-bankruptcy-statistics/#chapter-7-bankruptcy-statistics

[4] Zuckerman, A., & Zuckerman, A. (2020, May 26). 80 Bankruptcy Statistics: 2020/2021 Data, Insolvency Factors & Recovery Predictions. CompareCamp.com. https://comparecamp.com/bankruptcy-statistics/

[5] Armstrong, C. (2021, July 12). Why Do So Many Chapter 13 Cases Fail? The Balance. https://www.thebalancemoney.com/why-do-so-many-chapter-13-cases-fail-316195

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

23843 Joy Rd
Dearborn Heights, MI 48127

Monday – Friday : 9:00 am – 5:00 pm
Saturdays : 9:30am – 11:30 in office or by phone

We offer late night appointments as late as 6:30 by phone or in person Mon-Thur.

Highly Recommended

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