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Chapter 7 bankruptcy - personal bankruptcy - can provide a debtor with a “fresh start” by discharging most of his or her debts. Chapter 7 bankruptcy is appropriate when a debtor is overwhelmed by debts from sources like credit cards, medical bills, or judgments and garnishments from lawsuits. When one owes at least $15,000 and has less than $200 left at the end of every month, bankruptcy is likely to be a viable option. Unless the debtor has a way to repay the debts or has significant equity in his or her home, Chapter 7 bankruptcy may be the right path. Although declaring bankruptcy will have a negative affect on the debtor’s credit report, the debtor often already has credit problems. It is a good idea, however, to begin rebuilding credit soon after bankruptcy is declared. Bankruptcy takes a few months to complete. Ann M. Howard possesses expertise in bankruptcy that allows her to be the most efficient advocate possible. The Michigan Chapter 7 bankruptcy timeline is as follows: - With accurate information, it takes one to two weeks to prepare and file the bankruptcy petition.
- The court mails a court date.
- On that date—a court session called the “341 Hearing”—Ms. Howard and her client meet with
- Any creditors who wish to be present
- The trustee, an agent of the court who will determine if there are any assets the court should take; usually, no assets are seized.
- A discharge of the debtor’s qualifying debts is sent two or three months later.
Please contact Ann M. Howard for a free phone consultation regarding your Chapter 7 bankruptcy needs.
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