The largest change to the Bankruptcy code was the implementation of a new “means test” to determine whether a debtor is eligible for chapter 7 (liquidation) or must file under chapter 13 (wage-earner repayment plan).  Basically in Michigan if you are single and earn over $43,677, or if your household size is two and earn over $50,079, for a household size of three the number is$58,467, and $70,237 for a household size of four, you may not be able to file for chapter 7 bankruptcy instead you may have to seek Chapter 13 relief.  It’s important to note that these numbers are updated periodically and are based on the States median income by family size.  You are also allowed deductions based upon your mortgage payments, car payments, Child support and other variables that can still make you eligible for Chapter 7 relief even if your income is higher than the state median income.

With our offices centrally located  in Livonia, we represent clients throughout Metro Detroit and beyond, including  Westland, Garden City, Wayne, Redford, Belleville, Farmington Hills, Plymouth, Canton , Taylor, Romoulus, Northville, Commerce Township, Wixom, Dearborn, West Bloomfield and Detroit .