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Bankruptcy in Michigan

Who Can File Bankruptcy in Michigan?

Anyone who lives in, works in, or owns real property in Michigan is able to file bankruptcy in the State of Michigan.  In order to be eligible for the maximum property exemptions however, you must have resided in this state for a minimum of 40 months prior to filing for bankruptcy.

What Do I Need To Know Before Filing For Bankruptcy in Michigan?

Before filing for bankruptcy it is important that you understand the possible repercussions of this decision.  While filing for bankruptcy will allow you to lower your total amount of debt, this decision may also affect your ability to get credit in the future.  Additionally, you should be aware that not all debts are discharged under the bankruptcy law.

What Type of Debts Can Be Discharged As Part of a Bankruptcy Proceeding in Michigan?

The type of debt which you can discharge under Michigan bankruptcy law is known as an unsecured debt.  This is a debt such as a medical bill or credit card bill which is not secured by collateral.  Debts which are secured by collateral such as a mortgage are considered secured debts, and can not be discharged under Michigan’s bankruptcy laws.  If the majority of your debt is in secured debts, you may not benefit from filing from bankruptcy relief.

Will I lose my house and car if I file for bankruptcy in Michigan?

The property exemption laws in Michigan are as follows:

-Homestead exemption of up to $30,000 (exemption is increased to $45,000 for those over 65)

-One motor vehicle of up to $2,775

-100% of family pictures, food, and fuel for up to six months

-Up to $3,000 in household furnishings with no one items to exceed $450

-Up to $2,000 in crops, farm animals, and feed

-Up to $500 in household pets

-Up to $500 in one computer and accessories

-Up to $2,000 in tools or materials associated with your profession

Do I really need to hire a Michigan bankruptcy attorney to represent me?

A bankruptcy attorney will be able to help you navigate the complex system of rules and laws which govern the bankruptcy system.  Without the aid of a competent attorney, you may find yourself unable to achieve the results you were looking for in your bankruptcy settlement.

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