Means Test

• All Chapter 7 debtors in Michigan are subject to a means test. The means test compares the median income for your family size against your income for the previous six months. If your median income is more than the limit allowed for your household size, then you are ineligible to file Chapter 7. As of 2010, the maximum median income allowed for a single debtor in Michigan is $43,456. The limit increases to $52,433 for married couples filing jointly.
  
  

Credit Counseling

• In addition to passing the means test, you must successfully complete credit counseling through a court-approved agency. Credit counseling must be obtained within six months of filing your initial Chapter 7 petition. At the time you file, you must submit a copy of your certification. You may petition the bankruptcy court to waive this requirement if your situation qualifies as an emergency.
  
  

Filing

• You must file your Chapter 7 petition with the Eastern or Western district bankruptcy court, depending on where you live. The courts have offices in Detroit, Flint, Bay City, Grand Rapids and Marquette. As of 2010, the filing fee for Chapter 7 is $299. You must file your credit counseling certification, a list of creditors and their contact information, a list of your debts, income, expenses and assets and a statement of financial affairs. You are not required by law to have an attorney to file.
  
  

Exemptions

• As part of your Chapter 7 filing, you have to forfeit some of your assets to the bankruptcy court in lieu of payment to your creditors. As of 2010, the state of Michigan allows you to exempt up to $34,450 worth of equity value in your home. You can also exempt up to $3,450 in personal property; computers and accessories up to $575; a motor vehicle up to $3,175; and tools of the trade up to $2,300.
  
  

Discharge

• There are two things you are required to do in order to obtain your discharge. First, you must attend a meeting of creditors and answer questions about your financial situation. This meeting is presided over by the bankruptcy trustee, who supervises the disposition of your case. Your creditors may or may not attend. Second, you must complete a second course in financial management within 45 days of filing. Failure to complete either of these steps can result in a dismissal of your case.