Easy Way to File Bankruptcy in Michigan

U.S. states do not enact laws regarding bankruptcy eligibility requirements or filing options. When filing for bankruptcy in Michigan or any other state, you must comply with federal bankruptcy laws. Because federal bankruptcy laws do not require you to obtain a bankruptcy attorney, you are free to file on your own using an easy-to-use software program or online service.

Federal Means Test

Before filing for bankruptcy, complete a means test to determine if you meet minimum eligibility requirements. Under a federal means test, your monthly income cannot exceed Michigan's median income level. If your income level exceeds the median income level for your family size or you can afford to pay at least $100 per month in debt payments, file under Chapter 13, which involves debt reorganization plan. Otherwise, file under Chapter 7, which involves debt liquidation.

Full-service Bankruptcy Websites

In Michigan, you can file for bankruptcy through a full-service bankruptcy website. Such websites act as an online paralegal service. Once you submit your financial documents and a list of the debts you wish to include in the bankruptcy, the company will complete your paperwork and then file your case with the appropriate Michigan bankruptcy court.

Personal Bankruptcy Software

To handle your bankruptcy filing yourself, purchase personal bankruptcy software. Such software is available through local computer retailers. The first step is to download and fill out Schedules A through J and prepare a list of statements. For example, complete a Statement of Financial Affairs. Be sure you have a sufficient supply of printing paper in your printer; bankruptcy forms can range between 40 to 100 or more pages in length.

Free, Easy Help

One way to minimize or eliminate attorney's fees is to obtain bankruptcy-related services on a reduced fee or pro bono basis. The State Bar of Michigan can assist you in finding organizations that offer such services. Another way to reduce costs is to check the status of your bankruptcy filing yourself through the free Voice Case Information System (VCIS). Contact the Western Michigan division at 866-222-8029, or the Eastern Michigan division at 877-422-3066. This system uses a touch-tone inquiry-response system to provide limited bankruptcy case information from the court database.

References

• U.S. Trustee Program: Census Bureau Median Family Income By Family Size
• State Bar of Michigan: State Bar Staff
• Department of Justice -- U.S. Trustee Program: Means Testing
• Easy BK Services: Michigan Bankruptcy Laws, Forms, Exemptions
• U.S. Attorney Legal Services: Bankruptcy Records
• Public Access to Court Electronic Records: Telephone Access