If you live in the State of Michigan, you may file for bankruptcy protection by submitting a petition in United States federal court for either the eastern or western district of Michigan. Before you file your petition, it will be important to carefully weigh your options as there are three forms of bankruptcy from which you may choose to file.

Venue

You must ascertain the appropriate legal venue for your filing. Residents living in the eastern part of the state can file with the United States Bankruptcy Court for the Eastern District of Michigan. The court is located at 211 West Fort Street in Detroit with secondary courts located at 111 First Street in Bay City and 226 West Second Street in Flint. Those living in west Michigan may chose to file with the United States Bankruptcy Court for the Western District of Michigan located at 1 Division Avenue in Grand Rapids with secondary locations at 410 W. Michigan in Kalamazoo, 315 West Allegan Street in Lansing, 3249 Racquet Club Drive in Traverse City and 202 West Washington Street in Marquette.

Types of Bankruptcy for Individuals

It will be necessary to determine which type of bankruptcy you will need to file. There are generally two forms of bankruptcy claimed by individual filers. Chapter 7 bankruptcy allows the filer relief of some of his debts with certain exceptions such as certain taxes, student loans and child support. Chapter 13 bankruptcy restructures the debts of the filer in order to provide him with financial breathing room while still requiring him to pay his creditors. Each form of bankruptcy is accompanied by various differences, which you must carefully consider. For instance, chapter 7 will require the liquidation of assets valued above a certain level while chapter 13 allows the petitioner to keep his assets. In order to qualify for chapter 7 bankruptcy an applicant can not make more than income than the median wage earner in the State of Michigan. As of 2009, the median single wage earner was $44,703, a family of two's median was $53,575, a family of three was $63,339 and a family of four was $76,312. This number is subject to change over time as new figures are released by the United States Census Bureau. In order to qualify for chapter 13 bankruptcy an applicant cannot have more than $1,010,650 in secured debt or $336,900 in unsecured debt.

Types of Bankruptcy for Businesses

If you own a business you may chose to file bankruptcy under chapter 11. Businesses, including corporations, partnerships, and sole proprietorships, can keep their business open and avoid liquidation of assets by filing chapter 11 bankruptcy. This action is typically taken to re-organize the business and allows the debtor to work with his creditors to save the business and re-pay debt.

Forms

In order to start the bankruptcy process you will need to file the appropriate forms with the court. The bankruptcy forms with instructions are provided by the United States Courts' website and the link is included in the resource section following this article.

Pro-Bono Legal

You may not be able to afford to retain an attorney who specializes in bankruptcy law. In this case, you may be eligible to apply with the court for a pro-bono legal counsel.

Cost

You will be required to pay fees to the court. A petition for chapter 7 bankruptcy will cost $299 while a chapter 13 petition costs $245. A link to the fee schedule is also listed in the resources section.

Source:

United States Bankruptcy Court Eastern District of Michigan: Location and Hours

United States Bankruptcy Court Western District of Michigan: USBC WDMI Courtroom Locations

Lawyers.com: Bankruptcy in Michigan:

More Information:

USCourts.gov: Fee Schedule for the United States Bankruptcy Court Western District of Michigan

USCourts.gov: Fee Schedule for the United States Bankruptcy Court Eastern District of Michigan

USCourts.gov: United States Courts Bankruptcy Forms with Instructions