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Southfield,  MI 48075
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Detroit,  MI.  48228
Tel:  1.313-982-0010

Bankruptcy Information

If you’ve decided to file for Chapter 7 bankruptcy, you should be prepared to pass a “means test.” Now! How to Pass The Means Test in Chapter 7?

by BankruptcyMax on 12/05/19

The bankruptcy means test determines who can file for debt relief through Chapter 7 bankruptcy.

It takes into account your income, expenses and family size to determine whether you have enough disposable income to repay your debts. Although it was designed to restrict the number of debtors who can get their debts forgiven through a Chapter 7 bankruptcy, most people who take the means test pass it easily.

If your annual income, for a family the size of yours, is below the median for State of Michigan (if you file in Michigan), you are free to file the bankruptcy chapter of your choice.

However, if your annual income is above median, you have to apply the means test formula for comparing future expenses against that historic income.  If that formula says that you have $400 a month in discretionary income, then a Chapter 7 case is presumed to be an abuse of bankruptcy law.

The current median household income for Michigan is $54,909.00.

The court presumes that a debtor who fails the means test is abusing the Chapter 7 bankruptcy process. But you might be able to overcome the presumption of the abuse. To do so, call our Michigan bankruptcy lawyer in Detroit areas at (248) 281-6299 or visit our website


What Is a Statement of Financial Affairs In Bankruptcy?

by BankruptcyMax on 12/05/19

 A statement of financial affairs is one of the important document in your bankruptcy case. It contains questions about your current and past financial situation.  The statement consists of only twenty eight yes or no questions. A “yes” answer requires elaboration. Questions on the bankruptcy Statement of financial affair requests information about payment to creditors, sources of income, transfer of property, law suit filed by creditors and gifts made by the debtor. In Statement of financial affairs a debtor must give true answers to a series of questions in writing regarding their financial transactions. 

If you need additional help: Contact our Southfield bankruptcy Lawyers by calling (248) 281-6299.  Our Detroit Bankruptcy lawyers serve the following cities:  Detroit, Ann Arbor, Allen Park, Albion, Lincoln Park, Brighton, Howell, Saline, Monroe, Blissfield, Romulus, Southgate, Wyandotte, Livonia, Dearborn, Westland, Lansing, Hamtramck, Livonia, Canton, Redford, Lincoln Park, Taylor, East Lansing, Okemos, Warren, Sterling Heights, Roseville, Eastpointe, Battle Creek, Oak Park, Hillsdale, Inkster, Ferndale, Hazel Park, Whitmore Lake, Plymouth, Farmington, Trenton, Flat Rock, Tecumseh, Clinton, Chelsea, Novi, Garden City, Westland, Northville, South Lyon, Milan, Brooklyn, Melvyndale, Ecorse, Belleville, Canton, Wayne County, Ingham County, Washtenaw County, Monroe County, Macomb County, Livingston County, Shiawassee County, Clinton County, Eaton County, Calhoun County, Branch County, Hillsdale. 

We are located at :24300 Southfield, Ste 210, Southfied, Ste 210,  Michigan, 48075

Bankruptcy Schedules \ What are they? Bankruptcy Forms Explain - BY:

by BankruptcyMax on 12/05/19

Bankruptcy schedules are forms that each debtor need to fill. Those forms are official and you can find them if you live in Detroit area by going to the official Bankruptcy Court For The Eastern District of Michigan website. Each form is  for specific  subject for example Bankruptcy Schedule A  ask you about your real estate. Bankruptcy Schedule B will ask about your personal property and more. There are ten bankruptcy schedules in all and they are organized alphabetically ranging from Schedule A to Schedule J.


·         Schedule A – is About Real Property:

·         Schedule B – is About Personal Property

Schedule B requires the debtor to disclose all interests in personal property. This includes the debtor's:

  • Household goods
  • Clothing
  • Vehicle
  • Retirement plan(s)
  • Bank accounts
  • Stocks
  • Bonds
  • Mutual funds
  • Business interests
  • Partnership interests


·         Schedule C - Exemptions:  Here you need to list your exemptions, which are legal reasons why you get to keep your assets. Your lawyer will have the expertise to determine if any of your property will be at risk, thus, non-exempt.

·          Schedule D - Secured Creditors: Secured debts are debts that are linked to some form of property. For example, your mortgage company would be a secured creditor since they hold a lien against your home. Your auto lender would be a secured creditor since they have a lien on your auto. You need to list your secured creditors Such as mortgage, auto loan, etc

·         Schedule F - General Unsecured Creditors: Generally this schedule consists of a lot of unsecured personal loans, unsecured credit cards/lines, medical bills, etc.

·         Schedule G - Executory Contracts and Unexpired Leases

·         Schedule I - Income: 

·          Schedule J - Regular Monthly Expenses and Disposable Income. If you have any questions, call us at (248) 281-6299. We offer Free Bankruptcy Consultation. 

Exemptions: What Property You Can Keep if You File For Bankruptcy In Michigan?

by BankruptcyMax on 12/04/19

Exempt property is a property that you can keep after filing for bankruptcy. Maximizing your exemptions will allow you to keep the maximum amount of property. In Michigan, the debtor is free to use either Michigan exemptions or federal exemptions. Most debtors or lawyers are using federal exemptions. Exemptions allow the debtor to keep his or her property as may allowed by law. What are those exemptions

 Real Property (your home):        You can protect up to $25,150 of equity in your principal place of residence under the federal exemptions under  (11 U.S.C. § 522(d)(1).)  The residential property can be:

  • a house or another dwelling, such as a condominium, or
  • personal property used as a residence (such as a residential trailer).


Personal property

Anything you own that is not your house or land is considered personal property.

Motor Vehicle - § 522(d)(2)  ---------------------------- $4,000

Household Goods - § 522(d)(3) ----------------------- $625.00  Per Item

                                                                              $13,400.00 Total

Jewelry - § 522(d)(4)   ---------------------------------- $1,700.00

Wild Card - § 522(d)(5)----------------------------------$ 12,575.00

Tools of the Trade - § 522(d)(6)-----------------------$ 2,525.00

Unmatured Life Insurance - § 522(d)(8)------------$ 13,400.00

Personal Injury Claims - § 522(d)(11)(D)-----------$ 25,150.00

Tax-exempt retirement accounts, including 401(k)s are exempt without regard to their value. However, IRAs and Roth IRAs are capped at $1,283,025. Educational IRAs are exempt without regard to value.

Detroit Bankruptcy Court Location:

US Bankruptcy Court

211 West Fort Street
Detroit, Michigan 48226
(313) 234-0065
8:30 a.m. to 4:00 p.m. (M-F)

Detroit Michigan Bankruptcy Attorney 




Am I allowed to file bankruptcy if my income is high?

by BankruptcyMax on 12/03/19

Bankruptcy now includes a "means test" which is intended to provide a more objective approach to the issue of a debtor's ability to pay. Prior to the 2005 amendments, the trustee could ask the judge to dismiss a case because the debtor's income was so high that to permit the debtor to discharge his debts in Chapter 7 was a "substantial abuse" of the bankruptcy system. Now, the means tests purports to provide uniformity to the process and lowers the standard to simple "abuse". S 707(b)(2).

The United States Trustee or the Chapter 7 trustee can seek to have a debtor's case dismissed for "abuse" if the debtor's income, including that of a non-filing spouse, is sufficient to repay a significant portion of the scheduled debts.  11 U.S.C. 707(b). The real expectation is that debtors who are challenged in this way will convert their case to Chapter 13.