What Can You Keep When You File Chapter 7 Bankruptcy in West Michigan?
If you’re thinking about filing Chapter 7 bankruptcy in West Michigan, you’re probably wondering:
“Will I lose everything I own?”
The truth is, most people who qualify for Chapter 7 do not lose their home, car, or belongings. Michigan has generous bankruptcy exemption laws designed to protect the things you need to live and rebuild financially.
At Legacy Legal & Business Services, PLC, we guide West Michigan clients through the Chapter 7 process and help ensure they keep as much of their property as possible, while eliminating overwhelming debt.
What Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, often called “liquidation bankruptcy,” allows individuals to discharge most unsecured debts like credit cards, medical bills, and personal loans.
In exchange, the court assigns a bankruptcy trustee to review your assets. If you own valuable property that isn’t protected by exemptions, the trustee may sell those items to repay creditors. However, most people who file Chapter 7 have few (if any) non-exempt assets, and the majority of cases are considered “no-asset” cases.
What Can You Keep in Chapter 7 Bankruptcy?
Michigan law provides a list of exemptions, types of property you’re allowed to keep when you file for bankruptcy. These typically include:
- Your primary residence (up to a certain amount of equity)
- One vehicle (within a certain value range)
- Clothing and personal items
- Household goods and furniture
- Tools used for your profession
- Retirement accounts and public benefits
- A portion of your wages or income
In many cases, you’re able to keep everything you own, especially if your assets fall within the exemption limits.
Important: Michigan offers the option to use state or federal exemptions, you can choose the one that protects more of your property. An experienced bankruptcy attorney can help you decide.
Why Local Experience Matters in West Michigan
While bankruptcy is federal law, how it’s applied can vary based on the local trustee, judge, and court procedures. That’s why it helps to work with a West Michigan bankruptcy attorney who understands the nuances of filing in Allegan, Ottawa, Kent, and surrounding counties.
We’ve helped individuals and families across West Michigan file bankruptcy and protect their property, and we’re here to help you, too.
Ready to Take the Next Step?
If you’re overwhelmed by debt and unsure what you’ll lose by filing, let’s talk.
Schedule a free confidential consultation with a West Michigan bankruptcy attorney who can guide you through the process and help you protect what matters most. Call our office today at (616) 681-0100, or you can visit our www.legacylegalbusiness.com to get started!