Bankruptcy FAQ

1. What is Bankruptcy?
Bankruptcy is a legal proceeding in which an individual who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.

2. What can Bankruptcy do for me?
Bankruptcy may make it possible for you to:

• Eliminate the legal obligation to pay most or all of your debts.
• Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed payments.
• Prevent repossession of a car or other property.
• Stop wage garnishment, debt collection harassment, and similar creditor actions to collect a debt.
• Restore or prevent termination of utility service.
• Allow you to challenge the claims of creditors who have committed fraud or who are otherwise

3. How often can I file Bankruptcy?
You can file for Chapter 7 bankruptcy again after six years has passed from the date of your last filing. A Chapter 13 bankruptcy can be filed at any time.


4. What different types of Bankruptcy should I consider?
Most people filing bankruptcy will want to file under either chapter 7 or chapter 13. Either type of case may be filed individually or by a married couple filing jointly.


5. How much does it cost to file for Bankruptcy?
It now costs $200 to file for bankruptcy under chapter 7 and $185 to file for bankruptcy under chapter 13, whether for one person or a married couple. The court may allow you to pay this filing fee in installments if you cannot pay all at once. If you hire an attorney you will also have to pay the attorney's fees you agree to.

6. What will happen to my home or car?
In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors in chapter 13. However, some of your creditors may have a "security interest" in your home, automobile or other personal property.

To schedule a free consultation to discuss bankruptcy in Detroit, please contact a Detroit bankruptcy lawyer today at (313) 259-7427. We offer affordable legal fees which are personalized to fit your budget.