Are you looking for a Chapter 7 bankruptcy lawyer in Warren, MI?

At Gudeman & Associates, P.C., we are trusted Chapter 7 bankruptcy lawyers with 53 years of experience.

If you are considering Chapter 7 bankruptcy in Warren, two questions have to be answered before a petition is prepared. The first is whether your income qualifies you to file. The second is which of your assets the exemptions protect. Our Warren, MI Chapter 7 bankruptcy lawyer completes that exemption analysis before recommending a filing. Gudeman & Associates, P.C. has represented Michigan debtors since 1973. Contact our office to arrange a confidential review of your financial position.

Chapter 7 Bankruptcy Lawyer Warren, MI

A Chapter 7 bankruptcy lawyer is an attorney who prepares and files a liquidation case, in which qualifying unsecured debts are discharged and a court-appointed trustee may sell any property the exemptions do not cover. In most consumer cases no property is sold, because the available exemptions cover what the filer owns. Confirming that in advance is the substance of the work.

Median household income in Warren is $64,016, and 14.8 percent of residents live below the poverty line, according to federal census data. A household operating within those figures has limited capacity to absorb a medical expense or a reduction in hours. Our Warren Chapter 7 bankruptcy attorney represents clients in that position.

Types of Chapter 7 Matters We Handle in Warren

Chapter 7 addresses several categories of debt, and the category often determines whether the chapter is appropriate at all. The following are the matters we handle most frequently.

• Credit card debt. Revolving debt is the most common reason clients file. Where minimum payments cover interest and little principal, the balance can remain effectively unchanged for years, and credit card debt is generally dischargeable.
• Medical bills. Hospital charges, physician billing and treatment costs are unsecured obligations and receive the same treatment as other unsecured debt. Insurance coverage does not always prevent the problem, because deductibles and uncovered services accumulate.
• Personal loans and collection accounts. Signature loans, lines of credit and accounts that have been sold to collection agencies fall within the same category and are ordinarily discharged together.
• Debt collection. A creditor holding a judgment may reach wages and bank accounts. Filing halts that activity, and we defend the underlying debt collection action while the case proceeds.
• Wage garnishments. A garnishment withholds a portion of each paycheck before it is paid to you. The automatic stay terminates most wage garnishments promptly, and ending one is frequently the reason a case is filed when it is.
• Repossession and vehicle debt. Following a repossession, the lender may pursue the remaining balance. That deficiency is an unsecured obligation and may be discharged with the rest.
• Foreclosure. Chapter 7 does not cure a mortgage default, so an owner already behind on payments may be better served by a different chapter. It can, however, discharge the unsecured debt that made the mortgage unaffordable. Where a sale has been scheduled, the foreclosure analysis governs.
• Tax debt. Most tax debt survives a discharge, although certain older income tax debt does not. Determining which category a balance falls into requires review of the filing and assessment history, and a disputed assessment may belong before the Tax Court rather than in bankruptcy.
• Debt. Owners who signed personal guarantees frequently carry company obligations on their own credit. Those obligations are treated as consumer debt in an individual case.
• Obligations that survive discharge. Support obligations, most student loans and recent taxes generally remain due. Establishing that at the outset prevents a filer from completing a case only to find that the balance which prompted it was unaffected.

Why Choose Gudeman & Associates, P.C. as my Chapter 7 Bankruptcy Lawyer in Warren, MI?

Consumer Bankruptcy Practice in the Eastern District

Edward J. Gudeman founded this firm and has belonged to the Consumer Bankruptcy Association since 2007. Cases originating in Warren are filed in the Eastern District of Michigan, and familiarity with how that venue operates in practice is acquired by appearing there regularly. He was admitted to practice before the United States Supreme Court in 1976, completed his undergraduate degree before entering law school, and has practiced for 53 years. That is the background we bring as a bankruptcy lawyer in Warren, MI.

An Assessment Before a Recommendation

Our attorneys bring more than 100 years of combined legal experience, and the firm holds an A+ rating from the Better Business Bureau. Not everyone who consults us should file, and we say so when that is our conclusion. Some clients are better served by a repayment plan than by a liquidation, and some are better served by waiting. The purpose of the first meeting is an accurate assessment of your circumstances. Virtual consultations and secure document exchange are available throughout Macomb County.

What Is Important To Understand About Chapter 7 Bankruptcy?

What Are Important Aspects of a Chapter 7 Case?

Several factors determine how a case proceeds, and most of them are resolved before the petition is filed.

1. Exemptions determine what a filer retains. Michigan filers select between the state and federal exemption schedules, and the appropriate choice depends on what is owned and where the equity is held.
2. Disclosure is complete or it is defective. Assets, transfers, income and recent payments are all reported in the petition, and an omission causes greater difficulty than the item omitted was worth.
3. The timing of transfers is examined. Property conveyed or sold below value before a filing may be recovered by the trustee, so moving assets in advance of a case is counterproductive.
4. Income is measured over a defined look-back period rather than by current earnings. A recent reduction in income may not yet be reflected in the calculation.
5. The credit counseling requirement precedes the filing and the financial management course follows it. Failing to complete either can cost the discharge.

What Is the Chapter 7 Timeline?

A straightforward consumer case proceeds on a predictable schedule. Once the documents are assembled, we prepare and file the petition, and the automatic stay takes effect upon docketing, which is what terminates garnishments and collection contact. A trustee is then appointed and a meeting of creditors is scheduled, ordinarily a brief proceeding at which the trustee examines the filer under oath regarding the petition. Creditors seldom appear. A period follows during which objections may be raised, and in most consumer cases none are. The discharge order is entered at the conclusion and the case is closed. Most filers complete the process within several months of the petition date.

Chapter 7 Compared With the Alternatives

Liquidation is one of several available approaches and is not invariably the correct one.

• Chapter 7 discharges qualifying unsecured debt and requires no repayment plan.
• Chapter 13 establishes a plan funded over a period of years and can cure a mortgage default, which Chapter 7 cannot.
• Negotiated settlement resolves balances without a court filing, although a forgiven balance may be taxable.
• Taking no action carries its own consequences where judgments and garnishments are already in place.
• For a business owner, a reorganization chapter may preserve an operating company where an individual filing would not.

What Should You Bring to Your Chapter 7 Consultation?

A complete financial picture allows us to tell you sooner what a filing would accomplish.

1. Pay stubs or other income records for the preceding six months
2. Federal and state tax returns for the last two years
3. A list of debts, with statements or collection correspondence where available
4. Recent bank statements and retirement account statements
5. Titles or loan documents for vehicles and real property
6. Any garnishment notice, judgment or lawsuit documents

Warren and Eastern District Bankruptcy Resources

Consumer cases originating in Warren are administered in federal court, while related state matters remain local.

• The United States Bankruptcy Court for the Eastern District of Michigan has jurisdiction over Macomb County and the remainder of southeastern Michigan. Its Detroit courthouse is located at 211 West Fort Street.
• The district holds court in Detroit, Flint and Bay City, and the court publishes plain-language material explaining how consumer cases proceed.
• The 37th District Court serves Warren from 8300 Common Road and hears collection suits, garnishment proceedings and landlord-tenant matters, which frequently precede a bankruptcy filing.
• Credit counseling and debtor education must be completed through an approved provider, and the court’s site identifies which providers qualify.

These resources are listed for information only. We do not endorse them or vouch for the content on their sites.

Reach Out to Gudeman & Associates, P.C. to Schedule a Consultation

Most clients have managed a difficult financial situation for some time before consulting an attorney, and the first meeting is an exchange of information rather than a commitment. Contact us to arrange a consultation with a Warren Chapter 7 bankruptcy attorney. We will review your income, your obligations and your assets, and advise you whether a filing would improve your position and what it would require. If another approach is better suited to your circumstances, we will tell you that instead. We respond promptly.