Michigan Bankruptcy Lawyers

Michigan bankruptcy lawyers offer help to people with unmanageable bad credits. Bankruptcy is a legal process that allows a debtor, under certain conditions, to temporarily or permanently avoid paying some or all of their personal debts. The US Congress enacted the bankruptcy code in 1978, and amended it in the spring of 2005. The aim of this legislation is to benefit relief and structure to the people, who have become heavily indebated and can not make the repayments, on time and / or in the required amounts. At present two forms of bankruptcy are available to individuals. These are covered under Chapter 7 and Chapter 13.

The 2005 Bankruptcy Act makes it mandatory to all individual debtors filing for bankruptcy on or after October 17, 2005 to undergo credit counseling six months before filing for bankruptcy relief. It also requires the debtor to complete a financial management instructional course after filing bankruptcy.

Under the 2005 Bankruptcy Act, the individual's income and expenses will be analyzed to determine if the provisions of Chapter 7 or Chapter 13 are applicable. This is called the means test.

To begin the bankruptcy process the debtor has to collect financial status data such as current income sources, major financial transactions for the last two years, monthly living expenses, debts (secured and unsecured), and details of property owned by him. This should include all assets and holdings, including real estate. Tax returns for the last two years, deeds to owned real estate, car / s titles, and the documents for any other loans are also necessary.

Once this information is compiled, an attorney can then determine which property is exempt from seizure based on the Michigan Exemption Statue. Either the individual or the appointed lawyer has to file a petition, and fill in several other forms at the District Bankruptcy Court.

Michigan bankruptcy lawyers can be located by contacting Michigan state bar association's Legal Referral Service.

Source by Jimmy Sturo

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