Michigan Bankruptcy Process

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Bankruptcy Process

Bankruptcy can provide you with a financial refresh. There are two separate forms of personal bankruptcy, and understanding the difference can help you better address your own financial needs. The bankruptcy process follows the same course for everyone who avails themself of this financial tool, and having the professional legal guidance of an experienced Michigan bankruptcy attorney is always in your best interest.


At your initial consultation with a seasoned bankruptcy attorney, you’ll gain a better understanding of both Chapter 7 and Chapter 13 bankruptcy, determine which form of bankruptcy best suits your situation, and begin the process.

Chapter 7 or 13 Bankruptcy

Chapter 7 bankruptcy comes with a range of advantages that include:

  • It’s relatively quick.
  • It’s relatively straightforward.
  • You won’t need to pay off your creditors.
  • You can retain those essential assets that are necessary for your day-to-day life.

On the downside, however, you’ll have to give up any luxury items, which can include your home and car, if you are behind on the payments. Chapter 7 doesn’t include an option for getting up to speed with delinquent payments.

Chapter 13 works differently. With this bankruptcy process, you’ll be required to repay some, most, or all of what you owe, but the court will provide you with a repayment plan. This can allow you to keep your assets and prevent repossession of your car, foreclosure on your house, or both.

Fill Out Forms

Your dedicated bankruptcy attorney will help with the following:

  • Determining which form of bankruptcy is right for you
  • Determining if you qualify for bankruptcy, and if you’ve never filed before, you likely do
  • Guiding you through the process of filling out the necessary bankruptcy forms, which involves gathering all the necessary financial documentation

Automatic Stay

While your bankruptcy is pending, an automatic stay will likely be filed. This is intended to protect you from further debt collection on the part of your creditors. In the State of Michigan, there is a homestead exemption for Chapter 13 bankruptcy that allows you to protect a specific amount of equity in your home and vehicle.

Confirmation Hearing

Bankruptcy comes with a mandatory creditor’s meeting, which is also called a confirmation hearing. Attending this meeting and making any payments required – in a Chapter 13 bankruptcy – are important elements of the process.

Credit Counseling

Most people who go through the bankruptcy process are required to take a credit counseling course that is designed to help them learn how to manage their finances and balance their budgets moving forward.

Final Discharge of Debts

Finally, you’ll receive your discharge of debts. In a bankruptcy, you can discharge – or offload – most unsecured debt, which doesn’t include things like your mortgage or car loan.

The practiced Michigan bankruptcy attorneys at Aiello & Associates dedicate their imposing practice to helping clients like you obtain the fresh financial starts they’re looking for. To learn more about what we can do to help you, don’t wait to reach out and contact us today.

If you are facing a tough legal issue, the decisions you make now can affect you for the rest of your life. That’s why it’s important to seek the help of an experienced and aggressive lawyer.
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We have established a solid track record of success in handling intricate and highly contested divorce and family law cases. Our firm has successfully resolved numerous complex legal issues, including but not limited to contentious divorces, child custody disputes, property division challenges, and spousal support matters. We take a strategic approach to deliver favorable outcomes for our clients.

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