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Filing for bankruptcy in Michigan Bankruptcy law is a legal means for honest, hard working people to obtain a fresh start from financial difficulty. The cost for filing a Chapter 7 bankruptcy in Michigan is $306. This fee may not be waived but you may be able to pay it in installments.
Fee Schedule - Effective December 1, 2020 Chapter 7$338.00*Chapter 12$278.00*Chapter 15$1738.00*Conversion from chapters 7 to chapter 11$922.00Conversion from chapters 13 to chapter 11$932.0039 more rows
A Chapter 7 bankruptcy wipes out mortgages, car loans, and other secured debts. But if you don't continue to pay as agreed, the lender will take back the home, car, or other collateralized property using the lender's lien rights.
Unlike Chapter 13 bankruptcy, which is executed over three to five years, the Chapter 7 bankruptcy process can be completed in a matter of months. More specifically, you could expect it to take 4-6 months. This includes: Participating in a pre-bankruptcy credit counseling course.
An individual receives a discharge for most of his or her debts in a chapter 7 bankruptcy case. A creditor may no longer initiate or continue any legal or other action against the debtor to collect a discharged debt. But not all of an individual's debts are discharged in chapter 7.
Fortunately, Michigan's courts provide a lot of helpful online resources for people filing Chapter 7 bankruptcy on their own. Plus, you usually don't need an attorney for a simple bankruptcy, especially when it's a Chapter 7.
People using the Michigan system of exemptions can protect up to $30,000 of equity in their homes. People using the federal system of exemptions are entitled to $21,626 for individual filers and $43,250 for joint filers.
It is certainly possible to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy without an attorney. After all, there is no legal obligation for you to have one to file bankruptcy. But you should probably only file without an attorney if your filing a simple Chapter 7 case, as we'll explain below.