I've worked with hundreds of clients who have filed bankruptcy in Flint, MI, Detroit, MI, and Bay City, Michigan. One unplanned event — a job loss, a medical emergency, or an unexpected expense — can often send individuals or families on the path to bankruptcy.
One of the biggest fears people have about filing is that they will lose everything they own. This is one of the most persistent myths about bankruptcy, and in the vast majority of cases, it simply is not true.
Both federal and Michigan state law provide what are called "exemptions" — categories of property that are protected during the bankruptcy process. These exemptions exist specifically to ensure that people who file for bankruptcy can maintain a basic standard of living.
In most Chapter 7 cases, filers are able to keep:
If you have property that exceeds exemption limits, Chapter 13 bankruptcy may be an even better option. Under Chapter 13, you keep all of your property and repay a portion of your debts over a three-to-five-year period. This allows you to catch up on mortgage payments, car loans, and other secured debts while keeping everything you own.
The idea that "bankruptcy means losing everything" keeps many people from exploring an option that could give them real financial relief. In my experience, most clients are pleasantly surprised to learn how much of their property is protected.
If you are considering bankruptcy and are worried about losing your home, your car, or other property, I encourage you to schedule a free consultation so we can review your specific situation. Every case is different, and understanding your options is the first step toward a fresh financial start.
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