Bankruptcy FAQs

• What do I need to do to begin the bankruptcy process?
• How will I know that declaring bankruptcy is right for me?
• If I file Chapter 13, what are my creditors’ rights and responsibilities?
• When does filing Chapter 7 make sense?
• Are there differences between Ypsilanti bankruptcy law and bankruptcy laws in Ann Arbor?
• Will filing for bankruptcy end those calls from creditors and collection agencies?
• What happens to my corporation if I file personal bankruptcy?
• Can a business be forced into bankruptcy?

What do I need to do to begin the bankruptcy process?

See our how to prepare for your initial bankruptcy consultation with a Ypsilanti or Ann Arbor bankruptcy lawyer list for details.  Schedules of assets and liabilities, along with a statement of your financial affairs, are the core of the petition you will file with the bankruptcy court in Ann Arbor. Bankruptcy law also requires you to pay a filing fee.

How will I know that declaring bankruptcy is right for me?

An attorney experienced in bankruptcy laws can help you determine the options that best suit your particular situation. Filing for Chapter 7 in Ann Arbor, Ypsilanti or throughout Michigan, as an individual relieves most of your debt, but not all.  Filing Chapter 13 pays off your debts with a structured repayment plan.

If I file Chapter 13, what are my creditors’ rights and responsibilities?

When you file, you include a proposed pay-off plan to for priority claims against you in full.  In a bankruptcy litigation in Ann Arbor or Ypsilanti, once the bankruptcy court appoints a trustee, who approves your plan, your creditors receive a copy of the plan.  They have the right to accept or reject it. If approved, you make monthly payments to the bankruptcy trustee, who distributes the funds to your creditors according to plan.

Are there differences between Ypsilanti bankruptcy law and bankruptcy laws in Ann Arbor?

Because bankruptcy law is regulated at the federal level, there are no differences between bankruptcy law in Ann Arbor and Ypsilanti bankruptcy laws.  But whether you need Ann Arbor bankruptcy services or Ypsilanti bankruptcy services, contact The Law Offices of John R. Bailey today.  We are responsive, understanding, and prepared to help with bankruptcy law in Ypsilanti and Ann Arbor.

Will filing for bankruptcy end annoying calls from creditors and collection agencies?

Once you begin working out a plan or your trustee is gathering and preparing your assets to sell to satisfy your debt, your creditors are legally required to stop all collection against you.  Once the bankruptcy petition receives the “Relief Ordered” stamp on the filing, you are protected.   If a creditor still tries to collect directly from you after that point, notify the creditor in writing that you have filed bankruptcy and provide the case name number and filing date or a copy of the filed petition. If the creditor still continues to collect, you may be entitled to take legal action against it with bankruptcy litigation in Ypsilanti or Ann Arbor.

What happens to my corporation if I file personal bankruptcy?

Personal bankruptcy does not affect the corporation, since the corporation is a legal entity separate and distinct from its shareholders. 

Can a business be forced into bankruptcy?

Yes.  In an Ypsilanti or Ann Arbor bankruptcy litigation, creditors may launch an involuntary bankruptcy proceeding against your business.  This is rare and happens when creditors fear that your company is squandering or misappropriating assets that could help pay debts you owe them.