Legal Question in Bankruptcy in Michigan

Re: Bankruptcy

A means test determines if your income falls above or below the mean or average income in your geographic location. If your income is above the mean, there is a presumption of abuse for a Ch. 7, but that presumption can be rebutted for special circumstances. Also, generally, you must have enough income in a Ch. 13 to fund a repayment plan, although there is such a thing as a 0% plan which pays nothing to unsecured creditors, but pays attorney and trustee fees.

You can contact me for additional information at 248.679.1552.

Rochelle Guznack

Re: Bankruptcy

technically yes. it all depends on the facts of your case and the trustee handling it. you would likely still qualify for a ch 13- they would just cut off some of your debt or negotiate them down. simply because you go with a ch 13 doesn't mean you pay back every single penny. the trustee will work out a plan that you can afford with your income and that your creditors will accept.

the trustee can also force you to sell off certain assets or take out a home equity loan, if you have a certain percentage of equity in your house, to use towards paying your creditors/debts (this can happen with a ch 7 of 13).