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Understanding Chapter 7 Bankruptcy

Trusted Counsel from Our Detroit Bankruptcy Lawyers

Often referred to as liquidation bankruptcy, Chapter 7 is a popular approach to getting rid of debt once and for all. However, because it is so popular, the government established income guidelines to limit the number of people who can file for Chapter 7 bankruptcy. If you are dealing with mounting credit card debt, foreclosure of your home, and repossession of your belongings, our firm wants to help. Our Detroit bankruptcy attorneys have over 40 years of combined experience and provide comprehensive, effective bankruptcy solutions that work.

Fill out our free case evaluation form to find out if you can qualify!

How do I know if I am eligible to file?

The means test is the gateway to Chapter 7 bankruptcy and asks applicants two questions: is your income higher than the average and do you have enough money to repay certain debts? If your income is too high, you may have to file for Chapter 13. Chapter 7 is beneficial for those who aren't interested in holding onto all of their property and don't have enough money to pay back their debt.

When you file, an automatic stay will go into effect. This stay puts an end to creditor harassment and requires that they stop trying to collect what you owe them. It can prevent things like eviction, utility disconnections, and multiple wage garnishments from happening to you.

What personal information is required when I file?

  • A description of the property you own or lease
  • Your current income and monthly living expenses
  • The amount of your debts
  • The property you owned and money you spent during the previous two years
  • Any property you sold or gave away during the previous two years

The more thorough you are on your bankruptcy forms, the better. Government officials will evaluate many different aspects of your financial circumstances to ensure that you are being honest on your application.

What can I keep in Chapter 7 bankruptcy?

Most people who file for Chapter 7 are often able to keep their home and car as long as it is within the exemption limits. In addition, basic items like furniture, clothing, and other personal belongings are also usually exempt in bankruptcy. Any luxury items or expensive property such as a vacation home will not be exempt and must be turned over to the trustee.

Unlike other areas of law, bankruptcy is relatively straightforward. An attorney can review your financial situation, what you own, and tell you exactly what you can expect to keep and what may be handed over to the court. We would be happy to review your case and provide you with a better understanding of what you can expect in your case.

Ready to file? Reach out to our firm today!

As you consider filing for Chapter 7 bankruptcy, it's entirely common to feel overwhelmed and scared about what lies ahead. Retaining our Detroit bankruptcy attorneys can alleviate much of this anxiety and help you feel confident in each decision you make.

No matter how hopeless your circumstances appear, The Cartwright Law Firm, PLLC believes that there is a way to achieve a brighter tomorrow. Let us walk with you on this journey and attain permanent financial change. Get in touch with us today to learn more!

Chapter 7
Chapter 13
Bankruptcy Exemptions
Bankruptcy FAQ
Bankruptcy Myths
Benefits of Bankruptcy
Creditor Harassment
Credit Repair
Discharging Debt
Debt Relief
Do I Qualify for Bankruptcy?
The Bankruptcy Process
Life After Bankruptcy
Loan Modification
Means Test
Mistakes To Avoid
Free Consultation: 248-973-7834
Cartwright Law Firm, PLLC - Detroit Bankruptcy Lawyer
Located at 24750 Lahser Road Southfield, MI 48033. View Map
Phone: (248) 973-7834