Southfield Chapter 7 Attorneys

Powerful Debt Relief with Goldstein Bershad and Fried, PC

Chapter 7 Bankruptcy helps individuals obtain relief from overwhelming debts. The process involves a bankruptcy trustee gathering and selling (liquidating) the debtor's nonexempt assets to pay off creditors. To qualify for this bankruptcy, you must first pass the means test. At Goldstein Bershad and Fried, PC, we have assisted numerous clients who have felt overwhelmed by their debt and did not see a way forward with their finances.

If you are considering filing for bankruptcy but do not know who you can turn to for help, our legal team is here to guide and assist you. Chapter 7 bankruptcy is one of the most common chapters, which you may be eligible for. Our Southfield Chapter 7 attorneys can work with you to determine if you are eligible for Chapter 7, Chapter 11, or Chapter 13 bankruptcy and explain how the process works.

The Benefits of Chapter 7 Bankruptcy

Chapter 7 bankruptcy is an appropriate choice for individuals or families who do not have sufficient, regular income to pay back their debts. To file for Chapter 7 bankruptcy, you must take a means test and give up any non-exempt property. If you qualify and file, you will be granted an "automatic stay." This protective measure immediately stops most creditors from seeking further collection activities, giving you essential breathing room.

This breathing room is critical, especially in navigating the often challenging legal landscape of bankruptcy. In Michigan, understanding which assets can be classified as exempt is paramount, as it determines what you can retain. Our Southfield location provides strategic advantages, as our attorneys are acutely familiar with local court procedures and statutory exemptions, all of which can significantly impact the outcome of your filing.

An automatic stay:

• Stops lawsuits and garnishments
• Stops any type of collection activities
• Halts eviction, foreclosure, and repossession

Chapter 7 bankruptcy also discharges (wipes out) most or all of your unsecured debt, or debt that is not tied to property. This includes, but is not limited to, medical expenses, credit card debt, personal loans, utility bills, debts personally guaranteed by a business, and some tax debt. Our firm can help you assess which of your debts can be discharged by Chapter 7 bankruptcy and which cannot.

Understanding the Chapter 7 Means Test

Chapter 7 means test checks your household income against your state's median income to determine if you have enough disposable income to repay your debts. If your household income falls below the state's median, you pass the means test and can file for Chapter 7 Bankruptcy. Understanding this test is crucial, as it serves as a gateway to accessing the full benefits of Chapter 7.

For the means test, your household income takes into account your essential expenses and family size. Additionally, it can be adjusted for recent or upcoming changes, like losing a job. Before attempting to file, you should gather detailed documentation about your income and expenses from the past six months. Our legal team provides support through collecting and organizing this information, simplifying the process for you.

This proactive approach ensures that you are well-prepared, potentially avoiding delays or complications. Moreover, in case of recent financial changes, adjustments to your reported income can be made promptly. Such flexibility is vital, as it keeps you in compliance with legal requirements while enhancing your likelihood of passing the means test. If you fail the means test, you have the option to reapply for Chapter 7 in six months. You can also apply for Chapter 13.

Understanding Southfield Court Procedures

Navigating the local court systems in Southfield can make a significant difference in the outcome of your bankruptcy case. The Southfield District Court frequently handles a variety of bankruptcy matters, and understanding the nuances of its operations can offer strategic advantages. It is important to know the specific filing procedures, document requirements, and possible local court rules that could affect your bankruptcy petition. Being well-prepared with this knowledge ensures that your case proceeds smoothly and reduces the risk of unnecessary delays.

At Goldstein Bershad and Fried, PC, our Chapter 7 bankruptcy attorneys in Southfield are experienced in dealing with the Southfield District Court and are familiar with its operational intricacies. This local insight allows us to efficiently manage your case, leveraging our knowledge of what the court expects from a Chapter 7 filing. From document submission to attending court hearings, our familiarity with local procedures means we can advocate more effectively on your behalf, tailoring our legal strategies to benefit from these localized practices.

Common Risks & Challenges in Southfield

While Chapter 7 bankruptcy can provide much-needed relief, there are potential risks and challenges specific to the Southfield region that applicants must be aware of. Southfield, with its bustling economic activity, often sees fluctuations in employment rates, which might affect income stability—a crucial factor when determining eligibility for Chapter 7. Additionally, understanding the local real estate market is essential since property values may impact what constitutes non-exempt assets during asset liquidation.

By working with Goldstein Bershad and Fried, PC, you ensure that these regional nuances are taken into account. Our legal team can provide you with a detailed assessment of how Southfield’s economic conditions and real estate values might influence your bankruptcy case. This level of localized scrutiny is critical to tailoring your bankruptcy filing to reflect not only your financial circumstances but also the broader economic conditions influencing your situation.

Income Limits for Filing Chapter 7 in Michigan

According to the U.S. Trustee Program/Department of Justice, the income limit for Michigan is as follows:

• 1 person household = $56,343
• 2 person household = $70,163
• 3 person household = $84,245
• 4 person household = $103,838