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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.
If you’re drowning in debt, facing relentless creditor calls, or struggling to make ends meet, you don’t have to go through it alone.
At Frego & Associates, our Southfield Chapter 7 bankruptcy attorneys have helped thousands of individuals and families wipe out their debts and get a fresh financial start. We understand how overwhelming financial struggles can be, and we’re here to guide you through the process with compassion and expertise.
Don’t let financial stress control your life any longer. Call 1-800-646-0075 today for a free consultation and take the first step toward a debt-free future. Our local Chapter 7 lawyers are ready to provide the support and legal guidance you need to start fresh with confidence.
Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is a legal process that allows individuals and businesses overwhelmed by debt to eliminate most unsecured debts and start fresh.
It is designed for those who cannot pay back their debts due to financial hardships such as job loss, medical emergencies, or other unforeseen circumstances. Unlike repayment-based bankruptcies, Chapter 7 focuses on discharging debts rather than restructuring them.
Once you file for Chapter 7, an automatic stay goes into effect immediately, preventing creditors from pursuing collection actions such as wage garnishments, lawsuits, or harassing phone calls.
If you’re a Southfield resident struggling with overwhelming debt, you may qualify for Chapter 7 bankruptcy to eliminate most of your unsecured debts. However, not everyone is eligible. You must pass the Chapter 7 Means Test, which determines whether you truly need financial relief or if you have enough income to repay some of your debts.
The first step in determining Chapter 7 eligibility is comparing your household income to the median income for a household of your size in Michigan. The estimated median income in Michigan was recorded to be 96,299 USD in 2024. [1]
If your gross household income is below the Michigan median income for your family size, you automatically qualify for Chapter 7 without needing to proceed further with the means test.
If your income exceeds the Michigan median, you must complete a more detailed means test to determine how much disposable income you have after essential expenses.
The court allows deductions for necessary living expenses, including:
After subtracting these allowable expenses, the court determines how much disposable income remains.
Even if you pass the means test, you must meet additional criteria before filing:
If you don’t qualify for Chapter 7 in Southfield, you may still have options:
If you qualify for Chapter 7 bankruptcy in Southfield, you gain access to a fresh financial start by eliminating most unsecured debts.
Many people hesitate to file due to fear of losing assets or damaging their credit, but the reality is that Chapter 7 provides immediate relief and can set you on a path to financial recovery much faster than struggling with overwhelming debt.
One of the most powerful benefits of filing for Chapter 7 is the automatic stay, which goes into effect as soon as you file. This legal order stops creditors from taking any further action against you, including:
Chapter 7 bankruptcy eliminates most types of unsecured debts, meaning you are no longer legally obligated to repay them.
Unsecured debt may include:
However, some debts cannot be discharged, such as:
Our Southfield bankruptcy lawyers can help you determine which debts will be eliminated in your specific case.
A common misconception about Chapter 7 is that you will lose all your belongings. In reality, most people who file keep everything they own due to bankruptcy exemptions, protections that allow you to shield certain assets from liquidation.
Key Michigan exemptions include:
If your assets exceed exemption limits, the bankruptcy trustee may sell them to repay creditors. However, most Southfield residents who file for Chapter 7 do not lose anything due to proper exemption planning.
Unlike Chapter 13, which requires three to five years of payments, Chapter 7 bankruptcy is completed in just four to six months. Once your debts are discharged, you can start rebuilding your credit immediately by:
Filing for Chapter 7 bankruptcy in Southfield follows a structured legal process. Understanding the steps involved can help ease concerns and prepare you for what to expect. The process generally takes about four to six months from start to finish.
Before filing, it is necessary to determine if you qualify for Chapter 7 through a means test, which we have already discussed.
Once you have passed the means test, your Chapter 7 bankruptcy attorney will collect necessary documentation, including pay stubs, tax returns, bank statements, and a list of debts and assets.
Before filing, you must complete a credit counseling course from an approved agency. This course is mandatory and must be completed within 180 days before submitting your bankruptcy petition. You will receive a certificate upon completion, which must be included in your filing.
Our local Southfield Chapter 7 attorney will prepare and file your petition and required schedules with the U.S. Bankruptcy Court for the Eastern District of Michigan, which oversees Southfield cases.
The petition includes:
Once filed, the automatic stay immediately goes into effect, stopping creditor harassment, wage garnishments, lawsuits, and collection efforts.
The court assigns a bankruptcy trustee, an independent official who reviews your case. The trustee’s role includes:
About 30 to 45 days after filing, you must attend a Meeting of Creditors. This is an informal hearing where the trustee and any creditors who choose to attend can ask questions about your financial situation.
If no issues arise, the trustee will close the meeting, and your case will proceed to discharge.
After the meeting of creditors, you must complete a second mandatory course known as the Debtor Education Course. This course focuses on budgeting, financial planning, and responsible credit use.
Approximately 60 to 90 days after the 341 meeting, the court will issue a discharge order, eliminating eligible debts. This means:
With your fresh financial start, you can begin rebuilding your credit and planning for a more stable financial future.
Filing for Chapter 7 bankruptcy is a significant decision, and having the right legal team can make all the difference.
Frego & Associates has been a trusted name in Southfield, guiding individuals through the bankruptcy process with professionalism and care.
Here’s why choosing us can help you regain financial stability:
Take the first step toward financial freedom. Contact our Southfield Chapter 7 bankruptcy attorneys today to schedule your free consultation!
Source:
[1] Michigan Income Statistics | Current census data for Michigan ZIP codes. (2024, December 18). https://www.incomebyzipcode.com/michigan
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 – 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.