Chapter 7 – Introduction
Chapter 7, or a “straight bankruptcy,” is for those who truly cannot afford to pay back their unsecured creditors – such as credit card and medical debt.
The benefits of Chapter 7 include the following:
- Temporarily stop home foreclosure and auto repossession
- Stop garnishments
- Stop harassing phone calls
- No repayment
- Eliminate credit card debt as well as personal and payday loans
- Discharge medical bills
- Discharge car repossession deficiencies
- Resolve old tax debts or the overpayment of certain government benefits
- For most cases, the process is over between 3-4 months.
If you’ve fallen behind on your home or car payments, Chapter 7 will temporarily prevent foreclosures and repossessions. However, there is no repayment plan in Chapter 7 so if you are trying to save your home or car by catching up on payments, then a reorganization under Chapter 13 (or even Chapter 11 in certain cases) is required.
At Gudeman & Associates, P.C., our experienced Chapter 7 bankruptcy attorneys in Royal Oak Michigan can help you assess your options and decide if filing for Chapter 7 can provide a solution to your debt problems. We will help you weigh all of your options and ensure that you are well informed before proceeding.
The Chapter 7 Means Test
For individuals with predominantly consumer debt, you must qualify for Chapter 7 through a “means test.” You will generally qualify for Chapter 7 if your annualized monthly income (based on the prior 6 month average) is less than the median household income for a household of your size. There is another test called the “totality of the circumstances” test that may cause you not to qualify, but most people who pass the means test will pass the second test as well. However, even if you are above the median income you can still beat the means test and qualify for Chapter 7 – it just takes more work to look at your income and expenses or see if there are special circumstances we can use to get you through a Chapter 7.
We offer a free consultation for the first half-hour – which is usually more than enough time to promptly evaluate your case.
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Affordable Prices and Payment Options
Other attorneys promise you low unbelievably low prices in their advertising – until they get you in the door and the price goes up because your case suddenly became more “complex.” The truth is that most pricing between attorneys for typical cases is competitive. We’re no different and our prices are well within the range of what others charge. However, because each case has its own issues, and we handle the simple case to the complex, we have to know what your case involves. We will analyze your case and give you a fair, competitive price. We have payment options depending on your situation. Also, We can check to see if you’re eligible to have the Chapter 7 filing fee waived.
Convenience – In Person, Over the Phone, Zoom
We like meeting people certainly enjoy meeting our potential clients in person. However, sometimes taking time off from your busy schedule isn’t so easy. For those who live and work a little farther from our office, or have trouble getting out due to medical conditions, we can do the consultation over the phone or by way of Zoom. Nowadays, we can prepare your bankruptcy filing and send and receive required paperwork electronically.
Technology allows us to now meet virtually and we service the entire Eastern District of Michigan.
We are also admitted in the Western District of Michigan and have had clients from that side of the state as well.CONTACT US NOW - WE CAN HELP
Trusted and Experienced
Our Chapter 7 attorneys near you in Royal Oak Michigan have over 100+ years of experience just doing bankruptcy and have filed thousands of cases for individuals and business. We have handled the simple case – to the extremely complex. We’ve defended our clients in all situations, including denial of discharge cases, fraudulent transfer and preference claims, and even bankruptcy appeals. In short, we’ve seen it all, and done it all. We can advise you on all aspects of bankruptcy.