How to File Bankruptcy in the State of Michigan
- 1). Attend a credit counseling session with an approved credit counselor. You can find a list of approved credit counselors for Michigan on the Office of the United States Trustee's website. Obtain a certificate proving that you attended the credit counseling session. You must complete this session within 180 days of filing for bankruptcy. If the credit counselor works out a repayment plan with you, get a copy of the plan in writing.
- 2). Visit the website for the U.S. Bankruptcy Court in your district to obtain the correct forms. Michigan has two districts: Eastern and Western. Detroit and surrounding areas are in the Eastern District, while the rest of the state is in the Western District. You must determine whether you want to file for Chapter 7 or Chapter 13 bankruptcy at this point, as the forms are slightly different for each type of bankruptcy. In a Chapter 7 bankruptcy, you liquidate your assets to pay your debts, while a Chapter 13 bankruptcy involves entering a structured repayment plan to pay all your debts.
- 3). Fill out the petition for bankruptcy. Answer all questions regarding your debts, assets and income. Sign and date the petition at the bottom. If you and your spouse are filing jointly for bankruptcy, you both must sign the petition.
- 4). Type a mailing list of your creditors, also called a matrix. The matrix must follow Michigan formatting rules. Type it on plain white paper in a single column, leaving at least one inch on the bottom of the page. Type no more than 5 lines of 40 characters or less for each creditor. Single space the creditor's name and address and leave two blank lines between creditors.
- 5). Complete Schedules A through J. Report your income and assets on these schedules. If you are filing for Chapter 7 bankruptcy, claim exemptions to liquidation on Schedule C.
- 6). Sign Form B6, which states that you have declared your assets and income truthfully. You also must sign a form stating whether or not you had the help of an attorney in preparing the forms.
- 7). Answer questions 1 through 18 on Form B7. If you have a business, answer questions 19 through 25 in addition.
- 8). Fill out forms B8 and 22A if you are filing for Chapter 7 bankruptcy. Form B8 is a statement of intention regarding secured property. You must file this with your bankruptcy petition to keep the property. Form 22A is a means test calculation. You must make less than the median income for Michigan to qualify for Chapter 7 bankruptcy. If you are filing for Chapter 13, file Form 22C instead. This statement of monthly income helps the bankruptcy court determine how much you can repay each month.
- 9). Make copies of your bankruptcy forms. Give the originals to the clerk of the court and pay the filing fee. If you cannot afford the filing fee, you may apply for a waiver.
- 10
Receive a notice from the bankruptcy court telling you the date and time of the 341 meeting, your first meeting with your creditors, as well as giving you the name of your bankruptcy trustee. Send the trustee a copy of your most recent tax return. You must also give a copy to any creditor who asks for it. - 11
Attend the 341 meeting. Bring two forms of ID with you. Answer the trustee's questions honestly. - 12
Take an approved course in financial management to qualify for a discharge. Complete Form 23 after you complete the course and turn it in to the court. - 13
Receive your discharge (for Chapter 7) or notice of approval of plan (Chapter 13) in the mail. If you file Chapter 13, make all structured repayments on time to qualify for a discharge.
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