Your home
Significant equity in your primary residence is typically protected, with extra protection for older filers.
Understanding Bankruptcy
A calm, plain-English guide to filing in Michigan.
Bankruptcy is a federal law designed to give honest people a second chance. This page walks through what it actually does, what it protects, and what to expect — without the jargon.
The basics
What bankruptcy actually is.
Bankruptcy is a legal process under federal law that helps individuals and families who can no longer keep up with their debts. It is heard in U.S. Bankruptcy Court — a specialized federal court — and it offers two clear goals:
- Protect you from creditors, lawsuits, garnishments, and collection calls the moment your case is filed.
- Erase or restructure debts you cannot reasonably pay, so you can rebuild without the weight on your shoulders.
- Treat creditors fairly through a transparent, court-supervised process — no hidden deals, no negotiation games.
The framers of the U.S. Constitution thought it was important enough to put a bankruptcy clause directly into Article I. It has always been part of the American promise of a second chance.
Chapter 7
The fresh-start bankruptcy.
Chapter 7 is the most common form of personal bankruptcy. For most filers, it wipes out unsecured debts — credit cards, medical bills, personal loans, old utility bills, most lawsuits — usually within about four months from filing to discharge.
Best for
People with limited income and mostly unsecured debt who want a clean slate.
Timeline
Roughly 90–120 days from filing to discharge in most cases.
What it erases
Credit cards, medical bills, personal loans, most judgments, old utilities.
What it doesn't
Most student loans, recent taxes, child support, criminal fines.
Chapter 13
The reorganization bankruptcy.
Chapter 13 is a court-supervised repayment plan that runs three to five years. You keep your assets — including a home in foreclosure or a car about to be repossessed — and pay back what you can afford from your income. At the end of the plan, remaining eligible debts are discharged.
Best for
People with steady income who want to save a home, vehicle, or catch up on taxes.
Timeline
3 to 5 years of monthly plan payments, then discharge.
What it does
Stops foreclosure, lets you cure mortgage arrears, restructures car loans.
What you keep
Your home, your car, your retirement — and most other property.
Side by side
Chapter 7 vs Chapter 13.
| Chapter 7 | Chapter 13 | |
|---|---|---|
| What it does | Erases qualifying debts | Restructures debts into a plan |
| Length | ≈ 4 months | 3 to 5 years |
| Income required | Below or near Michigan median | Steady, regular income |
| Stops foreclosure | Temporarily | Yes — and lets you catch up |
| Keep your home & car | Usually, if payments current | Yes, even if behind |
| Repays creditors | Rarely | Partially, based on what you can afford |
The automatic stay
The moment your case is filed, the calls stop.
The automatic stay is a federal court order that goes into effect the second your bankruptcy case is filed. It is one of the most powerful tools in all of consumer law.
- Creditor phone calls and collection letters stop immediately.
- Wage garnishments are halted.
- Lawsuits and judgments are paused.
- Foreclosure sales scheduled the next day can be stopped.
- Vehicle repossessions are halted — and repossessed cars can sometimes be returned.
- Utility shutoffs are delayed.
What's protected
You almost certainly keep your stuff.
Michigan and federal law both provide generous exemptions — categories of property that are protected from creditors. For the vast majority of Michigan filers, nothing is taken.
Retirement
401(k), IRA, pensions, and most retirement accounts are fully protected — even from a Chapter 7 trustee.
A vehicle
Equity in one car per filer is protected up to a meaningful limit set by Michigan law.
Household goods
Furniture, appliances, clothing, and personal items used in your daily life.
Tools of the trade
Equipment, tools, and items you use to earn your living are protected up to a statutory limit.
Public benefits
Social Security, unemployment, disability, veterans' benefits, and child support are protected.
Exemption amounts change periodically. Robert will review your specific assets against the current Michigan and federal exemption schedules at your free consultation.
The process
From first call to fresh start.
- 01
Free consultation
We talk through your situation, your debts, your income, and your goals. There's no pressure to file — sometimes the right answer is not to.
- 02
Gather your documents
Pay stubs, tax returns, bills, and a list of property. The intake documents on this site walk you through exactly what's needed.
- 03
Credit counseling
A short, federally required online course completed before your case is filed. Most clients finish it in under an hour.
- 04
Filing your case
Robert prepares and files the petition with the U.S. Bankruptcy Court. The automatic stay takes effect immediately.
- 05
The 341 meeting
A short, informal meeting with the trustee — about 5–10 minutes. Robert is with you the entire time.
- 06
Discharge
For Chapter 7, your discharge order arrives roughly 60 days after the 341 meeting. For Chapter 13, after you complete your plan.
Common myths
What people get wrong about bankruptcy.
Myth
"I'll lose everything I own."
Reality
Almost no one does. Michigan's exemption laws are designed to protect homes, cars, retirement, and household belongings.
Myth
"My credit will be ruined for ten years."
Reality
Most clients qualify for new credit cards and even car loans within a year, and many buy a home within 2–4 years of discharge.
Myth
"Everyone will know I filed."
Reality
Bankruptcies are public record but rarely come up unless someone goes searching. It will not appear in your local newspaper.
Myth
"Bankruptcy means I failed."
Reality
Most filings happen because of medical bills, job loss, divorce, or business failure — circumstances no one fully controls.
Myth
"My employer will fire me."
Reality
Federal law specifically prohibits employers from firing or discriminating against you because you filed.
Myth
"I make too much money to file."
Reality
There is a means test, but it's much more flexible than people think. Many higher-income filers qualify for Chapter 7 or 13.
The point of bankruptcy is the fresh start.
The discharge order is a federal injunction that permanently bars your creditors from ever collecting on those debts again. The weight comes off, and you get your evenings back.
Frequently asked
Questions Robert hears every week.
How much does it cost to file?
Robert quotes a flat, transparent fee at your free consultation — there are no hidden charges and no hourly billing surprises. Court filing fees are separate and are set by the federal court.
Will I have to go to court?
You'll attend one short meeting called the 341 meeting of creditors — usually 5 to 10 minutes long. Robert is with you the entire time. Most cases never see a judge.
Can I keep my house and car?
In nearly every case, yes. As long as you stay current on the payments (Chapter 7) or include them in your plan (Chapter 13), you keep them.
What about my spouse?
You can file individually or jointly. If your spouse isn't on the debts, they don't have to file with you, though sometimes filing together makes more sense.
How long does it stay on my credit?
Chapter 7 stays on your credit report for 10 years; Chapter 13 for 7. But new credit becomes available much sooner — most clients are surprised how quickly their score recovers.
Can I file again later if I have to?
Yes, with time limits between filings. Robert will explain exactly how that works in your case.
Have a question that isn't here? Read the intake documents or call Robert directly.
Talk to Robert directly
Free 15-minute consultation. Same-day callback.
No forms, no gatekeepers. Just a clear, calm conversation about where you stand and what your options look like.
Call (734) 662-1590
Open every day · 8 AM – 8 PM