Michigan consumers who are considering filing for bankruptcy must first pass a means test. This examines their income and financial obligations and determines whether they are eligible to file for Chapter 7 bankruptcy. A Chapter 7 bankruptcy allows a person to have most debts discharged with a few exceptions such as student loans. However, if people have assets they want to keep, such as a house, they might want to file for Chapter 13 bankruptcy instead since this allows them to restructure those debts with a payment plan.
An explanation of the bankruptcy means test
Bankruptcy and car loans
When a Michigan resident purchases a new car but then has difficulty making the monthly payments, giving up the car could still leave money that must be paid on the loan. If the lender sells it after a repossession for less than the loan balance, the remainder is called a loan deficiency. The lender can sue for it, or it could be taken by wage garnishment or other means. One option to eliminate a car loan deficiency is bankruptcy.
Court gives guidance on how trustees handle returned money
In some Chapter 13 bankruptcy cases in Michigan, creditors may return money that is paid to them to the bankruptcy trustee. A 2016 ruling in an Alabama bankruptcy court provides some guidance about how returned money might be handled.
Spending trillions for medical needs: A breakdown of costs
Healthcare costs in the United States are projected to account for 17 percent of the country's economy, translating to over $9,110 spent per person on medical needs. Despite the trillions of dollars that fall into this portion of the economy, little is known about how the costs breakdown.
Possible exemption for vehicle during bankruptcy
When Michigan residents file for bankruptcy, the court will review every aspect of their debts, income and assets. Allowances might be made for a vehicle, even if it was bought a short time before the petition was filed.
