Chapter 7 Bankruptcy Attorney in Lansing, Michigan
If you've decided to file a bankruptcy case, the next decision to make with your attorney is which Chapter is most appropriate for your situation. Our office files cases under Chapter 7 and Chapter 13.
Chapter 7 is the most commonly-filed chapter for consumer debtors. Most cases take 5 - 6 months, start to finish. Although it is technically referred to as "liquidation" bankruptcy, most of our clients are able to protect all of their property through the use of "exemptions." After a review of your information, our attorneys will warn you if any of your property is at risk, and they will discuss with you at great length whether filing under Chapter 7 is a good decision. But again, most Chapter 7 debtors are able to protect everything they have from liquidation.
Eligibility for filing under Chapter 7 is determined by means-testing - generally, in order to file a Chapter 7 case, debtors must have a household income that is less than the median income for a household of the same size in the debtor's county.
A successful Chapter 7 case serves to discharge (eliminate) debts like credit cards, unsecured loans, medical debt, etc. In general, Chapter 7 does not help with tax debt (except older tax debt), student loans, domestic support obligations, and a list of more obscure exceptions.