Even though bankruptcy discharges your personal obligation to pay a secured debt, the lien on your property will remain.

Any amount of a debt that is secured by property, will remain. Any amount that is not secured by the property, will be discharged. For example, if you your purchased a tv on credit, if you default on your payment the creditor has the right to the collateral (the tv). If the value of the tv is less than the amount you owe, the remaining amount will be discharged.

For more information regarding liens and Chapter 7 bankruptcy, contact our office at (586) 264-3756.

Related Posts: Chapter 7 Means Test – Median Income, Bankruptcy FAQ, When divorce leaves you bankrupt

Do I qualify for Chapter 7 Bankruptcy? One of the main factors in determining whether or not an individual qualifies for a Chapter 7 bankruptcy, is whether your household income is under the median family income amount.

For cases filed on or after November 1, 2017 in Michigan, the following are the median incomes by family size:

1 earner: $48,626

family size: 2 people: $59,541

family size: 3 people: $70,579

family size: 4 people: $87,070

for families in excess of four people, add $8,400 for each additional individual.

If your household income exceeds the aforementioned numbers, you may still qualify for a Chapter 7 bankruptcy. For more information, contact our office at (586) 264-3756.

Related Posts: What happens to a lien in Chapter 7 Bankruptcy, Bankruptcy FAQ, When divorce leaves you bankrupt

1.) Q: What is the Chapter 7 bankruptcy process?

A: If you are considering bankruptcy, we would ask you numerous questions about your income, assets, expenses, and debts. We would run your credit report to determine the amount you owe each creditor. If we find that your monthly expenses exceed your income, and your assets are within the bankruptcy exemptions, we would assist you in filing your bankruptcy petition. Once the petition is filed, a creditor’s meeting is held approximately 4-6 weeks after filing. After the creditor’s meeting is held, the Trustee has sixty (60) days to determine whether or not to discharge your debt. If the Trustee discharges your debt, then you will not be responsible for any of the debt listed in your bankruptcy petition.

2.) Q: What is the creditor’s meeting?

A: The creditor’s meeting, or 341 Hearing, is an informal meeting with the Trustee that is handling your case. Creditors are welcome to appear to ask questions related to your bankruptcy filing. The Trustee will generally ask questions about your income, expenses, assets, and debts. The Trustee will also ensure that the information contained in your bankruptcy petition is a true and accurate representation of your financial situation.

3.) Q: What is an Order of Discharge?

A: The Order of Discharge is the official order stating that your Chapter 7 case has been approved, discharging all of the debt listed in your petition.

4.) Q: What is the role of the Trustee?

A: The Trustee investigates the information contained in your bankruptcy petition. The Trustee then conducts the 341 Meeting and requests any additional information and documentation that they need, in order to determine if you qualify for a discharge of your debt.

5.) Q: When will my debt be discharged?

A: If the Trustee finds you are entitled to a discharge of the debts listed in your petition, then you will receive your order of discharge sixty (60) days after your 341 hearing – or approximately three (3) months from the date you filed your Petition.

Related Posts: Chapter 7 Means Test – Median Income, What happens to a lien in Chapter 7 Bankruptcy, When divorce leaves you bankrupt

A common problem for divorced couples, is that they go from a standard of living based upon two incomes, to a standard of living based upon one income. In addition, payments and debts are divided, and individuals are often left with a combination of high outstanding balances and high monthly payments.

If your expenses exceed your income, and your debt seems to be outweighing your assets, contact our attorneys at (586) 264-3756, to determine if bankruptcy may be a good option. The last thing you need after the stress of a divorce, is the stress of keeping up with bills. Let us get you the fresh start you deserve.

Related Posts: Chapter 7 Means Test – Median Income, What happens to a lien in Chapter 7 Bankruptcy, Bankruptcy FAQ