FAQs on Filing for Bankruptcy In Detroit Michigan
A state of diverse economy and majorly known as the center of the U.S. automotive industry, there is no wonder that the state witness a huge monetary transactions and a number of legal issues germinating from these exchanges. We mainly focus on the issue of bankruptcy in our following article. While in general, the filing process for bankruptcy is similar to that of other U.S. states. There are a few Michigan-specific information to be kept in mind depending on the Michigan Law.
As a resident of Michigan, where should I file for Bankruptcy?
This entirely depends on which part of Michigan are you from. Michigan is divided federal judicial districts-Eastern and Western district the bankruptcy courts are similarly divided and the main courts for east and west districts are in Detroit and Grand Rapids respectively. You can file for Bankruptcy either from the district where you have lived for more than 180 days before filing bankruptcy or where you maintain a permanent residence though you have been living away temporarily.
What is the state median for Michigan and am I eligible for filing Bankruptcy under Chapter 7 Bankruptcy in Michigan ?
As on 2015, Michigan state median for an average family of four was $63,893 annually. In case your average income for six months before filing for bankruptcy is less than this median you are eligible for filing bankruptcy. In case this is not so, you have to go through a string of tests to be considered as eligible for chapter 7 bankruptcy.
Are there any special exemptions under Michigan Bankruptcy Laws?
Michigan bankruptcy Laws allows the debtor more flexibility to be able to protect a larger part of their properties and they can choose between state and federal exemptions. Exemption up to $$56,650 is allowed for those over 65 years age or differently able. Other than that homeowners and their dependants are exempted up to $37,775 of their interests on housing or similar properties. For more info on homestead exemption.
Which form should I fill up for filing Bankruptcy in Michigan?
Besides bankruptcy petition, the debtor has to go through a complex calculation called the “means test” for chapter 7 and similar test for chapter 13 bankruptcies as well. Forms 22A and 22C or Statement of current monthly income and Means Calculation Test (for chapter 7 bankruptcy) and statement of Current Monthly Income and Calculation of Commitment Period And disposable Income (For chapter 13 bankruptcy) namely should be filled up according to the bankruptcy chapter under which you choose to file. These forms provide the debtor a list of expenditure that includes rent, food, and childcare. These comprise of the Standard deduction figures in Michigan.
It can be concluded that while there are differences in the federal laws all over US, they are not altogether vastly different or complex. A little prior research before filing for bankruptcy can help a lot with your future decisions.
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