What is the Bankruptcy Process?

The bankruptcy process starts with a call to our office.  You will speak with an attorney who will discuss the whole process with you and answer all your questions.  A that point, if you want to get more information or get started, we set up an appointment to speak with an attorney.  This appointment is FREE.  It is not 100.00 dollars that some attorneys charge.  At the appointment, we will get all the information and give you a list of documents that we need for your bankruptcy.  After your appointment, we will type you bankruptcy petition and schedules and set an appointment for you to review and sign your schedules.  The second appointment is short.  After you sign, we file your bankruptcy petition.  You are now filed and protected from creditors.  After filing, we will go with you to your meeting with the trustee called your 341 meeting of creditors.  This meeting takes about 15 minutes.  We review your bankruptcy petition with the trustee.  After your meeting of creditors, you receive your discharge of debts in the mail in about 60 days.  It is that easy.

How Much is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is typically 1,350.00 dollars.  This includes everything for the typical bankruptcy including the filing fee.  Some attorneys will quote you a lower fee and do “add ons” to get you to a higher fee.  Be careful of the bate and switch.  They will not tell you about the filing fee,  they will charge extra for reaffirmation agreements, they will charge extra for the meet with the trustee.  Some lawyers will not even talk to you unless you pay them 100.00 dollars.

How Do I Get Started With My Bankruptcy?

Getting start with your bankruptcy is easy.  It all starts with a phone call to Krupp Law Offices PC.  When you call you will speak to a bankruptcy attorney, not a paralegal.  Will will ask you some basic financial questions and review your bankruptcy options.  We will tell you what would be best to solve your debt problems.  The phone call is free with no obligation.  If you want more information or get started, we will schedule a short appointment to gather the necessary information and give you a list of documents that we will need to complete your bankruptcy.  The appointment costs nothing with no obligation.  It is easy to get the answers to your questions to determine if bankruptcy is right for you.

Do I Qualify for Bankruptcy?

To qualify for chapter 7 bankruptcy you need to be below the means testing for that state of Michigan.  Means testing is the average annual income for the state of Michigan.  The means testing is adjusted every 6 months.  The current Michigan means testing as of May 2019 is as follows: 1 person – $51,405.00, 2 people – $62,618.00, 3 people – $75,051.00, 4 people – $92,742.00. For each person in your household, the income amount increases.  Further, the number of people in your house is not tax dependents.  Household size is based on who is living there and include elderly parents and children that have not left your home.  The definition members of your household is broad.  Means testing does not apply to someone who has primarily business debt.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a payment plan to your creditors.  With a Chapter 13, you can get car payments and house payments current if you are behind.  You make a monthly payment to the trustee who pays your payments for you.  They payments are typically less than if you try and pay your debts on your own.  The plan lasts between 36 to 60 months based on your income.  You are required to pay you tax refunds into the plan to your creditors.  You can reduce your payment to your unsecured creditors based on your ability to pay.  The payment can be as little as 1500 dollars total over 60 months.  Chapter 13 can also be helpful with taxes and student loan repayments.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy discharges all of your unsecured debt.  Unsecured debt is debt that has no collateral for example credit cards, utility bills, medical bills, repossessions and lines of credit.  Secured debt, such as homes and cars, can be reaffirmed and you can keep those assets and continue to make payments.  Student loans and taxes are largely not discharged.  You do not make payments to the trustee and you can keep your tax refund.  The process takes a total of about 90 days.