Bankruptcy proceedings instituted under Chapter 7 of the Bankruptcy Code provide a "fresh start" for the debtor. When filing under Chapter 7, the debtor seeks to have each debt forgiven. In certain cases where debts represent items purchased on credit, for which the seller has retained a security interest, the court may require those items to be surrendered to the seller in exchange for the debt being forgiven. Once the court has determined that a debtor has fairly presented their financial situation, a discharge order will be signed granting the relief-requested forgiveness of each debt listed.

Filing Chapter 7 bankruptcy is where you wash your hands of all debt, and do not pay any of it back. This is different from Chapter 13 bankruptcy, where you make payments.

One major concern of many people is whether they have to give back any of their possessions if they file bankruptcy. The answer is that it depends on how much "stuff" you have, but if you're like many people who don't own much, have no real estate or other major things, chances are that the harassing creditors won't be able to get their hands on your stereo, your CD collection or, since you're viewing this on the web, your computer. We can likely make it so you give nothing back.

 

Will I Ever Get Credit Again?
The bankruptcy will appear on your credit report for up to ten years after you file. Other accurate negative reports on your credit must be removed after seven years However, according to former clients, this is usually not as big a problem as most people think. Credit lending agencies know you won't be able to file another bankruptcy for at least 6 years, and therefore, they don't have that risk to bear. You will not get as high a credit limit as you once had, or be able to borrow a large sum of money, but getting some credit (such as a secured credit card) shouldn't be that difficult and you can rebuild your credit over time. What you will likely face is higher interest rates, required higher down payments, more points, etc. Some people do have difficulty rebuilding their credit, but it is usually due to other factors besides bankruptcy, such as their employment record, other credit problems, etc. In any event, we can provide you with excellent materials for helping you rebuild your credit should you so desire.

What about Discrimination by my Employer or the Government?
You are protected against your job firing you or the federal government not giving you a student loan, etc. This is all mandated in 11 USC 525.

Why do I Need a Lawyer for a "Simple" Bankruptcy?
There is no such thing as a "simple" bankruptcy. Your work life, cash flow, spending patterns, and financial history have unique factors that only a skilled lawyer can pick up on which may affect how your case should be handled to maximize the powerful bankruptcy discharge. Be proud that you're not a simple person with a simple life.

Only a lawyer can give you legal advice. Only a lawyer can practice law. Only a lawyer can show up at court with you. Only a lawyer can fight a creditor if they contend any part of your case. Only a lawyer is answerable to the State Bar for ethics and competence. You may save a few hundred dollars on a bankruptcy paralegal, but they can't do any of the above. You do everything else... alone. And because they are not licensed and have no oversight, any mistake they make which ends up costing you thousands of dollars -- like missing equity in your car where you're forced to sell it -- there is nothing you can do. They have your $299 and are moving on to the next customer. Don't take a chance and cut corners with a legal process as important as this one which impacts all of your financial affairs!

You'll want a skilled bankruptcy attorney to help you with this, particularly if you're in Michigan. The Chapter 7 Michigan bankruptcy exemptions in Michigan are different than most states, and good Detroit bankruptcy lawyers can help protect most (if not all) of it for you. So remember, the difference between this and Chapter 13 is that you don't make payments on your debt. Discharging your debt with nothing to your creditors is the essence of a Chapter 7 bankruptcy.

Let us file your Michigan Chapter 7. We'll make it easy.