Bankruptcy Frequently Asked Questions

There are a number of frequently asked questions that our Ann Arbor bankruptcy lawyers hear on a regular basis from our clients:

When can I file for bankruptcy again? If you have already received a discharge of debt in bankruptcy you are not eligible for another discharge for eight years. However, there are benefits to filing bankruptcy even if you are not eligible for a discharge.

What assets can I keep? As far as secured assets, such as a house or vehicle, if you are current on your payments and can continue to make them, you most likely are going to be eligible to keep them. There are also state and federal exemptions that will impact what you can keep and how much you may have to pay back to the creditors.

If my income is over the median income, can I still file Chapter 7? The answer is maybe. If your income is over the median income, that does not determine whether you can or cannot file Chapter 7. It actually determines whether you will have to complete the remainder of the means test. You should not try to do the means test yourself, as the process can be complex.

Will I be able to get additional credit in the future? As a general rule, it takes about two years after a Chapter 7 bankruptcy to get a car loan and three to four years to get a mortgage. Of course, this all depends on the specific lender and interest rates may be high at first. Other circumstances, such as income level, will also play a role in the ability to get credit.

Learn more information and get answers to other bankruptcy frequently asked questions by speaking with the experienced bankruptcy attorneys at Marrs & Terry, PLLC. Located in Ann Arbor and serving individuals throughout the state of Michigan, including Detroit, schedule a consultation with our lawyers by calling 866-665-8095.