Bankruptcy

NoName456

New Member
Jurisdiction
Michigan
I'm on social security disability and my bills have gotten to the point where I'm not able to afford food out of my monthly check. I've been using what little money I had left in back payments for food and medical expenses. Does anyone know what the cost of bankruptcy is in Michigan?? I've $35000 in debt and a mortgage. Spare me the judgements as I did have a full time job which is why I was able to afford a mortgage and pay my bills. None of my bills are currently behind , I hate to file and have tried talking to creditors to reduce my payments but none will help unless I default on the payments. I even reached out to debt management programs and were told nothing they could as I did not have enough money to be put on their programs. If I wish to downsize to an apartment I need good credit which i currently have. So again I'm looking for advice not judgement.
 
Does anyone know what the cost of bankruptcy is in Michigan??

The cost of filing a pro se Chapter 7 BK in MI is the same everywhere in the USA.

You'll need to take two debtor education classes, one before the creditor hearing, and one before the discharge.

You can do them online, and they cost about $10 each, depending from whom you procure the classes.


You will file in the Eastern District of Michigan.

Read this pamphlet prepared by the court:

https://www.mieb.uscourts.gov/sites/default/files/courtinfo/LocalRules.pdf

You'll file in Bay City:

Eastern District of Michigan | United States Bankruptcy Court

Bay City
111 First Street
Bay City, Michigan 48708
(989) 894-8840
8:30 a.m. to 4:00 p.m. (M-F)

The CH. 7 BK filing fee is $335.00.

You can arrange to pay the fee in installments, read all you need to know on the court's website.

As a pro se litigant you'll save thousands of dollars, and it isn't hard.

You MUST educate yourself.

Here are some books = cheap:

How to File for Chapter 7 Bankruptcy

Debt Free: The National Bankruptcy Kit (The Self-Help Series): Daniel Sitarz: 9780935755183: Amazon.com: Books



BK Court guide is FREE:

Filing Without an Attorney

This one is FREE, too:

How to File for Chapter 7 Bankruptcy

This site does both classes for about $25

I am not recommending it, just illustrating possibilities:

Bankruptcy Course | DebtorCC.org
 
OK, advice not judgment, but not "legal advice" as I am not a lawyer and you act on my comments at your own risk.

If you need good credit to get into a decent apartment, do that first, and get settled in.

Then, pull the plug on your creditors. As long as you are filing bankruptcy anyway, it will destroy your credit and discharge your debts, so you might as well stop throwing good money after bad. Even bankruptcy lawyers will suggest that. By defaulting on all of your creditors you can save up a couple of thousand for a bankruptcy lawyer (they cost $1500 to $2500) rather quickly and creditors typically huff and puff for a long time before actually filing lawsuits.

Just be careful about defaulting on medical creditors. If you stiff hospitals and doctors and need medical care later they could be within their rights to deny you care.

Credit card companies should be the first to go. If you have any equity in your house, sell it as quickly as you can to avoid losing it, even if you have to lower the price to break even.

You're right, as long as you keep paying your bills, your creditors won't give you the time of day because (no surprise) they are getting their money. It's when you don't pay that they might be willing to help though credit card companies are less likely to help.

Mortgage companies, OTH, don't want to get saddled with yet another foreclosed property so they might allow a short sale.

One last thing, keep your money out of banks and hide your cash.
 
I agree that the first thing to do is go ahead and sell the house and downsize to an affordable apartment. And who knows, maybe you will get a good price for the house and have enough to pay off the other debts. Good luck to you.
 
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