Chapter 7 Bankruptcy
Michigan Chapter 7 Bankruptcy
When you file a Michigan Chapter 7 Bankruptcy your nonexempt assets are gathered up and sold. You should realize that the filing of a petition under Chapter 7 Bankruptcy might result in the loss of property.
One of the primary purposes of a Michigan Chapter 7 Bankruptcy is to discharge certain debts to give an honest person like you a “fresh start.” You will have no liability for discharged debts. However, in a Michigan Chapter 7 Bankruptcy case, a discharge is only available to individual debtors, not to partnerships or corporations. Although Chapter 7 Bankruptcy cases usually result in a discharge of debts, the right to a discharge is not absolute.
Who is eligible to file for a Michigan Chapter 7 Bankruptcy?
In Michigan, an individual, a partnership, or a corporation or other business entity may file for Michigan Chapter 7 Bankruptcy. There are no restrictions on the amount of debt carried by the individual filing for bankruptcy in Michigan. You will be required to receive credit counseling from an approved credit-counseling agency either in an individual or group briefing. There are exceptions in emergency situations.
Discharge of debts
A discharge releases you from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against you. Chapter 7 Bankruptcy discharge in Michigan is subject to many exceptions which is why you should consult with Dailey Law Firm Michigan Bankruptcy attorney Justin Grove before filing. With the exception of cases that are dismissed or converted, individual debtors usually receive a discharge in more than 99 percent of Chapter 7 Bankruptcy cases.