Bankruptcy Michigan Law

There are many different ways that you can get rid of the many debts that you have accumulated. These ways can include going to bankruptcy courts but you should know what is recommend for the bankruptcy courts in your state. The bankruptcy Michigan law requires that you go through with credit counselling before you apply for bankruptcy.

The bankruptcy Michigan law has incorporated the new bankruptcy act in their laws regarding bankruptcy. In this law you will have to attend a court approved credit counselling agency sessions at least 6 months before you can receive a certificate that will allow you to apply for bankruptcy.

Once you have qualified to begin the process of bankruptcy you should contact a bankruptcy lawyer as this person needs to give you a, means test. This means test, is part of the new bankruptcy Michigan law. This test will determine what your financial status is so that you can see which chapter of the bankruptcy code that you can apply to have your bankruptcy declared.

Depending on the means test and if you have less than $6000, after monthly living expenses, rent, food, loans and medical bills, has been deducted from your income for the next 5 years then you can qualify for chapter 7. Otherwise you will have to apply for chapter 13 of the bankruptcy Michigan law.

For chapter 13 you will need to have your repayment plan with all of the repayment details clearly given. This way the court will be able to see if you are sincere in your desire to get rid of your debts. Once the court and your creditors are sure that you will be able to repay the debts that you have owing you will be able to file for bankruptcy.

Once the process for both of these bankruptcy cases has begun you will need to gather the various paperwork that you need. This paperwork will include an itemized list of your current income sources, the major financial transactions that you have carried out for the last 2 years, and your monthly living expenses.

You will also need other items to satisfy the bankruptcy Michigan law act. Your various secured and unsecured debts must be readied to be handed over to your lawyer and then the court. Any property and assets that aren’t exempt for the bankruptcy Michigan law must be handed over along with any title deeds.

The paperwork for your bankruptcy case will include your tax returns for the past 2 years and any loans of yours. Once this information is ready you can file for bankruptcy. The courts of Michigan will issue an automatic stay if you have proved that you are in severe financial difficulties.