Chapter 7, otherwise known as liquidation bankruptcy, is generally the simplest and quickest form of bankruptcy and is available to individuals, married couples, corporations, and partnerships. In Chapter 7, a trustee who is appointed by the court gathers and sells your non-exempt property and uses the proceeds from the sale to pay your creditors.
Most chapter 7 cases are no-asset cases. This means that you do not have any non-exempt property for the trustee to sell.
To undergo a personal bankruptcy via Chapter 7 in Detroit, contact the Detroit bankruptcy attorneys for federal bankruptcy laws detail a means test that determines whether you are eligible for Detroit bankruptcy filing. If your income is below the median income for families in Michigan, based on U.S. Census Bureau statistics, you are eligible. If you make more than the median income for families in Michigan, your income over the past six months is considered, along with mortgage and car payments, back taxes and child support due, and school expenses up to $1,650 per year.
If you do not qualify for a Chapter 7 bankruptcy, your only option would be a Chapter 13 bankruptcy.
Steps to filing bankruptcy
For Chapter 7, a bankruptcy starts with the filing of the official petition, schedules, and a statement of financial affairs with the bankruptcy court. You must provide a list of all of your creditors and the amount and type of their claim as well as the source, amount, and the frequency of your income. As part of your Detroit bankruptcy filing, you need a list of all of your property and a list of your monthly living expenses. As soon as you file bankruptcy in Detroit, your creditors are prevented from trying to collect on your debts through what is called an automatic stay.
Seek out bankruptcy help
As part of the bankruptcy process you need to prepare many forms to be filed with local courts in accordance with their rules. You would be wise to contact an attorney for Detroit bankruptcy advice and help. Your lawyer can ensure that you have met all the requirements for filing deadlines and information. Detroit worker comp lawyers can help you with all aspects of bankruptcy.