The Bankruptcy Timeline in Michigan

If you are considering bankruptcy, you may think the process starts when you file your Chapter 7 or Chapter 13 petition. A preparation process occurs prior to the filing of your petition, however, which can begin as early as 180 days before filing. You will have to gather important financial data which will be necessary to include in the documentation you will submit to the court. This will include information about your debts, expenses, and other financial data. You should also know that it is vital to avoid making large purchases prior to filing. Many people think that since they are going to file for bankruptcy and have their debts discharged that they can spend as much as they want before they file. They may also transfer large sums of money or turn over assets to others, such as family members. This is not a good idea. Your petition could be denied by the court for doing so. Furthermore, you could be suspected of trying to commit fraud and even be faced with criminal charges.

Prior to filing a Chapter 7 petition, you will also be required to undergo a means test. This will determine whether you are eligible for a Chapter 7 based on your income and expenses. Also before filing your petition, you will be required to take part in credit counseling from an approved source. This credit counseling will help you assess whether you have other options besides bankruptcy and will create a budget plan based on the specifics of your financial situation. You must receive a certificate that you completed this counseling in the 180 days prior to filing your petition.

Before filing for bankruptcy, you should learn what to do and not to do in the days and months before you file in order to ensure that your case is not subject to delays, complications, or rejection by the court.

Michigan Bankruptcy Attorney

Once you have prepared properly for your bankruptcy case, you can then submit your petition and documentation to the court. Once your petition is submitted and approved by the court, you will receive an automatic stay which will prevent your creditors from contacting you further about your debts. This can be a major point of relief from the struggle and harassment you may have been under.

If you are struggling with overwhelming debt, you can get a tailor-made debt relief plan from Hensel Law Office, PLLC, serving the areas of Sterling Heights, Royal Oak, Clinton Township, Warren, and South Lyon. In the confidential atmosphere of this law firm, you can sit down with an attorney who deals with those in financial crisis every day. Mr. Hensel provides personalized legal service. He is the only one that you will deal with on regular basis, which is how he builds strong personal relationships with his clients. Learn what your debt relief solutions may be by contacting the firm to set up a free case consultation as soon as possible. Payment plans and evening and weekend appointments are available.