The bankruptcy process in Michigan can be a daunting process - which is why many people hire an attorney to help you file for bankruptcy. Filing for bankruptcy can be a complicated process, and the aid of an attorney can help navigate it. This guide outlines how to file for bankruptcy in Michigan - everything from fees, documents, and steps for the process.
Official Michigan Bankruptcy Forms
Before the Michigan bankruptcy court discharges any debt, you must disclose your complete financial picture, including your income, expenses, property, creditors, and recent financial transactions. You’ll find fillable, downloadable bankruptcy forms on the official form webpage. You’ll file your forms with the local bankruptcy court along with a filing fee or fee waiver and proof that you’ve taken the mandatory counseling course (more below).
Fees to File a Bankruptcy Petition
Effective starting December 1, 2020, the total fees you must pay to file a bankruptcy petition in Michigan are listed (in addition to attorney fees):
Chapter 7 Bankruptcy: $338
Chapter 13 Bankruptcy: $313
The bankruptcy court increases these fees from time to time. For updates fees, visit www.uscourts.gov.
Steps to Filing for Personal Bankruptcy in Michigan
Here are the steps and filing procedures to follow for how Michigan residents can file for bankruptcy:
Collect Your Bankruptcy Documents. Prepare all documents needed to file for bankruptcy in Michigan. This includes:
Record of debts and loans
Proof of identity & social security number
Documents of all income sources will include wage, 1099 income, child support, and government assistance
A complete record of all debt repayments
Vehicle titles
Real Estate documents including, recorded deed, recorded mortgage, mortgage statements & proof of real estate value
Take Credit Counseling Course within six months before you file for bankruptcy
Complete the Bankruptcy Forms and Get Your Filing Fee
Print Your Bankruptcy Forms & Go to Court to File Your Forms
Mail Documents to Your Trustee
Take the second Credit Counseling Course. This can be completed online.
Schedule a 341 meeting (creditors meeting). During this meeting, a Trustee will review your case and ask any questions they may have.
Sign any reaffirmation agreements for ongoing debts that won’t be discharge
Receive the bankruptcy discharge from the court. This can take about 90 days after the filing of the case. The United States Bankruptcy Court will mail you the official order discharging you of your debts.
Filing Over the Phone or Via Zoom
In today’s age, the bankruptcy process can be done virtually to align with COVID-19 precautions. In Michigan, it’s easier than ever to file for bankruptcy virtually or over the phone. Our attorneys will hold Zoom meetings with you to prepare for your upcoming 341 meeting. You can also find credit counseling courses to complete online.
Can I File Without a Lawyer?
It is possible to file for personal bankruptcy in Michigan without the need for a lawyer. There is no legal obligation when filing for bankruptcy. The process of Individuals filing for bankruptcy without an attorney is called “filing pro se”. While it is possible to file for both Chapter 7 and Chapter 13 without a lawyer, it’s not recommended.
Advantages of Filing Without a Lawyer
So, why would you file for bankruptcy without a lawyer? The main advantage is that it would save you money through filing for bankruptcy yourself. Hiring a bankruptcy attorney can be expensive, not to mention a filing fee. For someone that needs to get out of debt, avoiding legal fees can help. This is why Moran Law offers all clients affordable payment plans. Moran Law has never turned a client away due to money
With that said, it is highly recommended by the U.S. government that people get legal advice from an attorney for all Chapter 7 and Chapter 13 cases. There are long-term legal and financial implications, and the aid of a bankruptcy lawyer can help avoid the chances of filing for bankruptcy again.
When It Makes Sense to File for Bankruptcy On Your Own
When does it make sense to file for bankruptcy without the help of an attorney? For those in Michigan looking to file for Chapter 7, the laws are relatively easy to apply. You can get your debts discharged if you are willing to put in a bit of research and work. When filing for Chapter 7, it makes sense to file on your own (without a lawyer) for the following cases:
You make less than the median income for your household size in Michigan. For cases filed on or After May 1, 2021, the median income for Michigan is $53,113.00 for a household size of 1.
Creditors aren't likely to dispute a debt or claim fraud against you.
You own little or no property or assets.
You’re willing to spend approximately 40 hours on your own to learn how to file for bankruptcy in Michigan and understand the process.
When it Makes Sense to Hire a Lawyer
For most cases, it is helpful to have a lawyer present when filing for bankruptcy. No matter how complicated a case may be, your bankruptcy lawyer should have the expertise to handle the case. Having an experienced attorney present can help you manage the process and relieve some of the stress. This is true for all Chapter 13 cases and many Chapter 7 cases.
Here are a few instances when it makes sense to hire an attorney:
Guidance – a bankruptcy attorney can help you navigate all federal and state regulations, including Michigan exemptions.
Support - throughout the process, the attorney will be there if you have any questions during your meetings or responding via phone calls or emails.
Assessment - an experienced lawyer can assess your current financial situation and provide the best solution for you.
Protection – An attorney will instruct you on how to proceed with debt collectors, particularly those with bad behavior.
How Moran Law Helps
The Michigan bankruptcy attorneys at Moran Law can help you navigate the bankruptcy process. Whether it's a Chapter 7 or Chapter 13 Bankruptcy, you’ll receive comprehensive advice and guidance throughout the Michigan bankruptcy process. Our bankruptcy team has helped over 6,000 Michigan residents file bankruptcy and take back control of their financial freedom. We can file bankruptcy and assist Michigans residents in the following counties:
Wayne, Oakland, Macomb, Kent, Genesee, Washtenaw, Ingham, Ottawa, Kalamazoo, Saginaw, Livingston, Ann Arbor, Muskegon, St Clair, Jackson, Berrien, Monroe, Calhoun, Allegan, Eaton & Bay county.
We also offer a 100% free no-obligation consultation to help determine the right path for you and your family. We can file your case for as little as $99 down!
