How to Find Bankruptcy Records in Michigan?
In 2013, the city of Detroit in the state of Michigan filed what is known as the largest municipal bankruptcy filing in U.S.history. It was estimated that the debt was in the range of $18-20 billion. As a result of the bankruptcy filing, Michigan which was once a city with a population of 1.8 million in the 1950s reduced to a mere 700,000 people by 2013. This led the way to tens and thousands of abandoned buildings, uninhabited streets, and large vacant areas.
Apart from a state, individuals can also file bankruptcy. The state of Michigan issues official copies of bankruptcy court records for all federal bankruptcy district courts. Original copies of the court entered paperwork are also issued to banks, lenders, mortgage companies, attorneys and real estate brokers.
An individual can apply for a Complete Bankruptcy Package to the state of Michigan and in return, the individual will receive bankruptcy documents related to the case, all schedules, the bankruptcy discharge order, reaffirmation agreements, final decrees, creditors and mortgage approval.
Discharge / Schedule Package:
Another package that an individual can apply for is the Discharge / Schedules Package. The package includes the retrieval of schedule D, E, F which includes the discharge or dismissal order. This package includes information on all creditors and amounts in the case. Discharge / Schedules Package is usually ordered to help officials in credit repair. An added advantage of this order it effectively stops collection agency harassment of the individual.
Discharge or Dismissal Package:
An individual can also order the Discharge or Dismissal Package which includes the Discharge or Dismissal paperwork. However, this package does not include the list of creditors, their amounts or the name of the creditors discharged in the case. The Discharge or Dismissal Package is required for rental applications, auto loans, and job applications.
General bankruptcy information:
The State of Michigan offers a few options that an individual has to consider before filing bankruptcy. There are basically three kinds of bankruptcies that may meet your needs.
Chapter 7 bankruptcy:
The goal of chapter 7 bankruptcy is to deal with and clear unsecured debts like personal loans, payday loans, medical bills, credit cards, etc. In order to clear the above debts, an individual may have to liquidate various assets attached to him or her like property or home. A Chapter 7 Bankruptcy helps provide an individual with a much needed fresh start in his or her life.
However, the State of Michigan requires that an individual take up bankruptcy counseling before filing for Chapter 7 Bankruptcy. An ' Income Means Test is also mandatory.
Chapter 12 Bankruptcy:
Chapter 13 bankruptcy helps an individual keep his or her assets by restructuring debts in ways that will pay back creditors a partial amount set over a court-appointed time frame. In a chapter 13 bankruptcy case, debtors can constructively pay off creditors under favorable payment terms. Several options are made available for a debtor and thus it is advised that an individual or a family fully understand their options with the help of a bankruptcy lawyer.
Chapter 11 Bankruptcy:
Chapter 11 is arguably the most complicated of all bankruptcy cases. This bankruptcy filing usually focuses on large businesses and companies. In a chapter 11 proceeding, the business does not essentially shut down operations. It remains afloat and in the meantime, the court helps the business restructure its debts and obligations. Large companies and corporations are entities that normally file a Chapter 11 bankruptcy proceeding. These proceedings are slow and time-consuming as compared to Chapter 7 and Chapter 13 filings bankruptcy filings.
Duration and time:
The time required to successfully file bankruptcy usually depends on the chapter an individual opts for. Other factors such as the individual's financial situation and debt level also play a major role. Taking into consideration all the above factor, a specific length of time can only be determined by the bankruptcy lawyer