How Long Do I Have to Wait to File For Bankruptcy if I Just Moved to Michigan From Out of State?

How Long Do I Have to Wait to File For Bankruptcy if I Just Moved to Michigan From Out of State?

What bankruptcy district you file in depends on what county you have lived in for the majority of the six months’ prior to filing for bankruptcy. You can file for bankruptcy in Michigan once you have lived in a County in Michigan for at least three months and a few days.

If you file for a “debt liquidation” bankruptcy under Chapter 7 of the United States Bankruptcy Code, the Trustee has an economic incentive in selling assets for the benefit of creditors. But the Trustee cannot just take what they want. In the vast majority of cases, you can keep all of your property in a bankruptcy. There are exemptions, or protections, you can place on your property so the Trustee cannot touch them and you can keep them.

Each State has its own laws regarding how much property you can “exempt” or protect in bankruptcy. The State exemption laws that apply to you depends upon the State in which you have lived for the two years immediately preceding the date you file for bankruptcy. If you have lived in Michigan for less than the last two years you have to look to the law of the State you came from to determine what exemptions you can use to protect your property.

The above information is a general overview and is not intended to be used as legal advice. If you are considering filing for bankruptcy, the best thing to do is call our office at 248-557-3645 and schedule a free consultation so you can receive advice which is tailored to your specific circumstances.

By: Michael Benkstein, Esq.

Managing Attorney, Bankruptcy Department

The Law Offices of Joumana Kayrouz, PLLC

1000 Town Center

Suite 800

Southfield, MI 48075

(phone) 248-557-3645

(fax) 248-200-0645

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