There are two main types of bankruptcies for citizens:

Bankruptcy in Chapter 7 allows your family to eliminate most unsecured debts ,no lliens,in several months by giving up all “non-exempt” property — if you have any.

In Flint Bankruptcy people in great debt who file for Chapter 7 Bankruptcy, have no available non-exempt property or equity. This means that for many what they own at the beginning of a bankruptcy they keep.Your property may be protected by exemption laws, or pledged to a secured creditor as collateral for a debt, and therefore not available to pay off unsecured creditors.

This type of Flint Bankruptcy is called a “no asset” bankruptcies, and most Chapter 7s are of this type.

Bankruptcy in Chapter 13 takes 3 to 5 years. In exchange for not giving up property, debtor repays a portion of the debts and lives within a strict budget that is watched closely by the Flint bankruptcy court trustee. 50% can’t make the required monthly payments, this causes Chapter 13 bankruptcy to fail and debts will remain (unless debtor converts to a Chapter 7 bankruptcy).

Flint Bankruptcy Chapter 13 is used by debtors who are behind on secured debt payments (e.g., mortgages) and present to the Bankrupcy Judge by way of a Trustee a Chapter 13 plan to catch up on these payments over time.

New to Flint Bankruptcy ,October 2005, is a mathematical formula called the “means test” this establishes an initial determination of the kind of bankruptcy debtor may qualify for: Chapter 7, Chapter 13, or either. This formula takes into account:

•your monthly income
•the amount and kind of your debts, and
•other aspects of your financial situation.
If your annual income is less than the Michigan median income for your household size, then you can file for Chapter 7 or Chapter 13, (assuming you meet other qualifications). If your income is higher than the state median, you must first complete a long list of expense deductions to estimate what your ‘disposable income’ will be over the next five years. The result of this calculation determines whether you can file for Chapter 7, or are left with Chapter 13 as your only option.

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