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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.
Chapter 7 bankruptcy is a lifeline for individuals and businesses drowning in unmanageable debt, however, navigating its complexities demands careful guidance. As a legal process, it allows for the liquidation of assets to settle debts, providing a fresh start for filers in Westland.
At Frego & Associates Law Firm, our experienced Westland Chapter 7 lawyers possess extensive knowledge of the legal procedures, qualifying criteria, and nuances of filing. We ensure the entire bankruptcy process is handled effectively to reduce stress for you.
Contact us at 1-800-646-0075 to get a free consultation. Schedule an in-person or online appointment today.
Our Chapter 7 attorneys will expertly manage your bankruptcy case and pave the way to a renewed financial life.
Chapter 7 bankruptcy is a legal remedy enabling the liquidation of assets to discharge debts for consumers, businesses, and corporations. It offers you the opportunity to eliminate most unsecured debts, including credit card debt, medical bills, and utility bills.
This type of bankruptcy plan aims to provide you with a fresh start by either liquidating your assets to pay off debts or wiping out eligible debts during times of financial difficulties. [1]
Key points:
Upon filing, legal protections prevent further creditor harassment and offer protection from creditors, ensuring immediate cessation of collection activities. The main goal is to afford debt relief and a stable financial life.
To qualify for Chapter 7 bankruptcy in Westland, you must meet specific income criteria based on household size. Exceeding the designated income range or possessing too many assets may lead to disqualification.
Chapter 7 relief is open to individuals, partnerships, or corporations, per 11 U.S.C. §§ 101(41), 109(b). It requires passing a means test; however, it is available regardless of debt amount or solvency.
A person cannot file for Chapter 7 or any other chapter if, in the last 180 days, a previous bankruptcy case was dismissed because of the debtor’s willful nonappearance or noncompliance with court orders, or if the debtor voluntarily dismissed it after creditors sought to recover liened property. 11 U.S.C. §§ 109(g).
In addition, to file under Chapter 7, individuals must get credit counseling from an approved agency within 180 days before filing. 11 U.S.C. §§ 111.
In emergencies or when there aren’t enough approved agencies to offer the necessary counseling, exceptions can be made. If a debt management plan is formulated during the required credit counseling, it must be filed with the court.
The Means Test is an assessment used to determine eligibility for filing Chapter 7 bankruptcy. It was established to prevent high-income earners from discharging debts without repaying creditors. The test compares your monthly income against the median income for your household size in the state of Michigan.
The table below shows the median income for various household sizes in Michigan: [2]
1 Member Household – $44,072.00
2 Member Household – $52,540.00
3 Member Household – $61,110.00
4 Member Household – $74,863.00
5 Member Household – $82,963.00
6 Member Household – $91,063.00
7 Member Household – $99,163.00
8 Member Household – $107,263.00
9 Member Household – $115,363.00
10 Member Household – $123,463.00
If your income exceeds the state’s median, further calculations are performed to assess disposable income by deducting allowable expenses.
Passing this test indicates that your financial situation qualifies for Chapter 7 bankruptcy, allowing you to eliminate unsecured debts and achieve a fresh financial start.
In Westland, Chapter 7 bankruptcy offers relief primarily from unsecured debts such as credit card fees, medical bills, and utility bills. However, it does not eliminate secured debts, which are loans backed by an asset, and certain other liabilities.
Here is a list of what Chapter 7 does not discharge:
Individuals seeking Chapter 7 relief must meet specific income and asset criteria. If they exceed these limits, they may need to consider Chapter 13 bankruptcy, which involves a court-managed repayment plan.
Filing for Chapter 7 Bankruptcy involves navigating several potential challenges. Primarily, eligibility is defined by income and asset limitations, which necessitate careful evaluation to ensure qualification.
Potential issues include:
Frego & Associates’ Westland bankruptcy attorneys can offer you 24/7 invaluable legal assistance in navigating the intricate bankruptcy process.
With over 100 years of collective experience, our local Westland chapter 7 bankruptcy attorneys can support you by assisting with the following:
We are open now to assist you in exploring your options if you need debt relief and are considering filing for bankruptcy. Get your free Chapter 7 Bankruptcy consultation today.
Sources:
[1] Chapter 7 – Bankruptcy Basics. (n.d.). United States Courts. https://www.uscourts.gov/court-programs/bankruptcy/bankruptcy-basics/chapter-7-bankruptcy-basics
[2] Michigan Bankruptcy Means Test – Chapter 7? (n.d.). http://www.michiganbankruptcy.com/means-test/
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.