Michigan Bankruptcy

Bankruptcy is a court process that assists individuals or businesses who owe more debts than they can pay to obtain financial relief. The process is governed by federal law, but Michigan offers its own exemption scheme and also allows filers to choose any exemption list (not both). Your exemption choice will affect what assets you can retain in a bankruptcy case.

How to File Bankruptcy in Michigan

In Michigan, before you file for bankruptcy, you must complete a court-approved credit-counseling briefing.Collect your recent tax returns, six months of income and bank statements, full asset and debt lists, vehicle titles, real-estate deeds, and past lawsuits. Choose a chapter, check its filing requirements and time limits, and decide whether to use the Michigan or federal exemptions.

Payment of the filing fee is required when you file your petition and schedules. If you are unable to pay the filing fee, you may apply for a waiver (for Chapter 7). You must use official forms and attend the 341 meeting of creditors. During the meeting, you must appear in person with your ID, required documents, and answer all questions under oath.

After filing your case, you must complete a debtor-education course before discharge (Chapter 7) or plan confirmation (Chapter 13). Then follow through on court or trustee notices.

Michigan Bankruptcy Types: Chapter 7, Chapter 13 & Chapter 11

There are three major types of bankruptcy cases in Michigan.

Chapter 7 (Liquidation)

A Chapter 7 case allows the sale of an individual’s assets to repay their creditors. This sale is handled by a trustee, and it involves non-exempt assets. Michigan offers some exemptions, like a homestead exemption that protects a fixed dollar equity amount on a primary residence.

Chapter 13 (Repayment Plan)

Rather than sell your assets, you may reorganize and repay your debts over 3-5 years if you have a regular income. Plan payments often reflect the value of non-exempt equity under the chosen exemption scheme. Michigan’s exemption limits help to determine how much you must pay unsecured creditors.

Chapter 11 (Business Reorganization)

This chapter is used by businesses, but occasionally, individuals with large or complex debt profiles may do so as well. It allows the debtor to confirm a plan of reorganization in order to keep its business alive or to sell the business. The chapter is best for cases needing complex restructuring.

Step In Filing For Bankruptcy in Michigan

If you need a checklist to keep track of your bankruptcy filing process, check the overview below:

• Complete the required credit-counseling course
• Gather necessary documents, including income, tax, asset, and debt records
• Choose the appropriate bankruptcy chapter and pick either Michigan or federal exemptions
• File the petition and schedules in the correct district (Eastern or Western) in Michigan
• Pay the filing fee or request installments/waiver
• Attend the 341 meeting of creditors
• Complete the debtor-education course
• Respond to all trustee or court communications until discharge or plan completion

Michigan Bankruptcy Courts & Record Access

Here are the filing venues (federal bankruptcy court) and how to access case records in Michigan.

Court Locations

The Eastern District of Michigan: The main office for the court is located in Detroit. The court releases the fee schedule to the public. For additional information, you can contact the United States Bankruptcy Court for the Eastern District of Michigan at:

The Western District of Michigan: The court has its main district in Grand Rapids with additional divisions at Marquette, Kalamazoo, Lansing, and Traverse City. The court provides a bankruptcy fraud hotline to interested individuals. The main office for the United States Bankruptcy Court for the Western District of Michigan is located at:

Record Access

In Hawaii, individuals may use the online PACER Case Locator to access dockets and retrieve court records. However, registration for a Pacer account is mandatory with payment of a $0.10 fee to search and view the case files.

You may request court records by mail from the court (payment is required in advance). You may request certified documents using the Copy Request Form (Western District) or submit a written request (Eastern District) and then mail the document to the court. Furthermore, you may visit the clerk’s office for copies of electronically imaged documents. The clerk offers several public computers in the office lobby that enable individuals to view and print documents.

The Federal Judiciary provides a Multi-Court Voice Case Information System (McVCIS), which enables individuals to access basic information free of charge. From a standard touch-tone telephone, you may access the McVCIS by calling (866) 222-8029.