FAQs

Chapter 7 bankruptcy allows you to get a fresh start financially by erasing most personal debts.This is a great way for people who are facing real financial hardships, nit it has been taken advantage of in the past.

For this reason, new legislation was passed in 2005 to ensure that only those in real need are allowed to file for bankruptcy.

Hiring a successful and knowledgeable attorney on your side will greatly improve your chances of successful discharge of your debt. Let the Law Offices Robert P. Coutts assess your personal situation and recommend if Chapter 7 bankruptcy is right for you.

When you apply for Chapter 7 bankruptcy, you'll need to complete the GA Means Test, which is an evaluation of your current financial status.

This test takes into account your income and all expenses to determine if you are currently above or below Michigan's current median income.

No, when you file for bankruptcy, your property passes to the court-appointed trustee on paper. The trustee applies exemptions and disposes of the non-exempt property. Then, the trustee uses that money to pay off as many of your bills as possible.

You are allowed to keep certain property which is considered exempt under the law:

• If you own a home and live in it, you may keep up to $22,975 in equity in it.
• You may keep up to $3,675 in equity in one motor vehicle.
• You may keep up to $12,250 worth of household furnishings, household goods, clothing, appliances, etc.
• You may keep up to $1,550 worth of jewelry.
• You may keep up to $2,300 worth of books or tools you need to retain to earn a living.
• You may keep up to $12,500 of paid life insurance policies.
• You may keep any health aids prescribed by a doctor.
• You may keep up to $22,975 of a personal injury claim.
• You may also keep certain types of pensions.

On the day your bankruptcy petition is filed with the court, federal law that requires all garnishments to cease once the creditor has been notified. Any garnishment after that date causes the garnishing creditor to be found in contempt of court.