BANKRUPTCY LAW FAQ

Helpful Bankruptcy FAQs

Answers to Your Questions About the Bankruptcy Process

Look through our list of questions and answers below to find the information you're looking for. If you have further questions, please contact the Law Offices of Robert P. Coutts today!

bankruptcy

Why Should I Hire a Chapter 7 
Bankruptcy Attorney?

Chapter 7 bankruptcy allows you to get a fresh start by erasing most personal debts. While this is a great way for people who are facing real financial hardships, 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 will greatly improve your chances of successful discharge of your debt. 

Let Robert P. Coutts assess your personal situation and make recommendations for you.

How Do I Know That I Qualify for Chapter 7 Bankruptcy?

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

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

If I File for Protection From My Creditors, Will They Take My Property?

No. When you file for bankruptcy, your property passes to the court-appointed trustee on paper. This trustee applies exemptions and disposes of the non-exempt property. 

The trustee then uses that money to pay off as many of your bills as possible.

You are allowed to keep certain property that 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 the home
  • You may keep up to $3,675 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 that you need to retain to earn a living
  • You may keep up to $12,500 of paid life insurance policies
  • You may keep 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

My Wages Are Being Garnished at Work. 
Will They Stop Taking Money Out of My Check if I File Bankruptcy?

On the day your bankruptcy petition is filed with the court, federal law requires all garnishments to cease once the creditor has been notified. 

Any garnishment after that date will cause the garnishing creditor to be in contempt of court.

Get your bankruptcy questions answered here. If you can't find the information you're looking for, give 
Robert P. Coutts a call!
313-381-1440

Let Robert P. Coutts help to put your mind at ease. He will work with you to make sure that you achieve the outcome that you're expecting.

FREE initial consultations. Appointments are preferred, but walk-ins are accepted 7445 Allen Road, Suite 118
318-381-1440

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