We have locations available by appointment in the following areas. Please call us to speak to an attorney and set up an initial meeting.
Filing for bankruptcy might represent your best shot at a fresh financial start, but only if you qualify. Eligibility for bankruptcy in Dearborn depends on a few different factors, starting with the type of bankruptcy case you intend to file.
Even if you do not qualify under Chapter 7, you could be eligible for Chapter 13. Our attorneys can review your finances and advise you on your options.
To qualify for Chapter 7 bankruptcy in Dearborn, you must pass the means test, which compares your income to the median income for a household of your size in Michigan. If your income falls below the median, you typically qualify. If it’s above the line, the test looks at your expenses to determine if you have enough disposable income to repay your debts.
Chapter 7 is generally reserved for individuals who cannot afford to pay back any portion of their unsecured debts, such as credit card bills or medical expenses. This option is ideal for those who have little income and few assets. It allows for a faster discharge of qualifying debts, giving you a clean slate in a matter of months.
Chapter 13 bankruptcy is designed for individuals who have a steady income but need time to catch up on debts. Unlike Chapter 7, Chapter 13 allows you to reorganize your debts into a manageable three- to five-year repayment plan. To be eligible, you must have unsecured debts less than a certain limit that is adjusted every year. You also must be current on your tax filings.
Chapter 13 is often used to prevent foreclosure, stop vehicle repossession, or catch up on back taxes while keeping your property. It’s a good fit for those who earn too much for Chapter 7 but still need structured relief from creditor pressure. As long as you can commit to a repayment plan and meet basic requirements, this type of bankruptcy can provide a practical path toward getting back on your feet financially.
Other factors can impact Dearborn bankruptcy eligibility that you should be aware of. One of the most common factors that could bar you from bankruptcy protections is having a previous discharge or dismissal in the recent past. The amount of time you have to wait to file again depends not only on the type of bankruptcy you are filing now, but also the type you pursued previously.
You could also have your case dismissed based on allegations of fraud. Some people use this system as an effort to frustrate creditors, even when they know they do not qualify. Any fraudulent activity could lead to your bankruptcy case being closed.
Finally, there are certain steps you are required to take before filing. If you do not complete your mandatory creditor counseling course ahead of time, the court could dismiss your bankruptcy case until you do.
While not everyone will qualify for bankruptcy protections, most people facing real financial hardship will have options available to them. If you have questions about eligibility for bankruptcy in Dearborn, you could benefit from talking through your options with an attorney. Reach out to our firm as soon as possible to schedule your private consultation. Our attorneys will not only evaluate your eligibility but also provide you with options for getting the fresh financial start you deserve. You can also fill out our online debt calculator for immediate insights.
We have locations available by appointment in the following areas. Please call us to speak to an attorney and set up an initial meeting.
We are a debt relief agency helping people file bankruptcy under the United States Bankruptcy Code.
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