File Chapter 7 Bankruptcy for Free in Michigan: Complete Guide

You don’t need a lawyer to file Chapter 7 bankruptcy in Michigan. The good news is that you have options. Filing bankruptcy can feel overwhelming, but this guide breaks it down step by step. You can handle this process yourself and start fresh.

Before you file, think about how much support you need and what you can afford. Understanding the costs of Chapter 7 bankruptcy and how to get fee waivers can save you hundreds of dollars. Many Michigan filers qualify for free filing.

How To File Bankruptcy for Free in Michigan

Collect Your Michigan Bankruptcy Documents

Before you start your Chapter 7 bankruptcy case, gather important financial documents. Some are required when you file. Others make the process easier.

Documents you must have:

• Your tax returns from the last two years
• Your pay stubs from the past 60 days
• Your most recent bank statement

Optional but helpful documents:

• Credit card and loan statements
• Bills or letters from collection agencies
• Bank statements from the last 6-12 months to track monthly expenses

You’ll also need to list all of your debts in your paperwork. Include the names and addresses of everyone you owe. Your debts fall into three categories:

• Unsecured debts: Credit card debt, medical bills, personal loans, and most student loans
• Secured debts: Car loans or mortgages where the lender can take the property if you stop paying
• Priority debts: Child support or past-due tax debts

Take a Credit Counseling Course

You must take a credit counseling course before filing bankruptcy. Complete the course within 180 days (about six months) before you file. Take it from an approved provider for Michigan.

The course usually costs less than $50. Most Chapter 7 filers qualify for a fee waiver.

After you finish, you’ll get a certificate of completion. Include this certificate when you file your bankruptcy paperwork.

Complete the Bankruptcy Forms

Most forms you need are federal forms. Download fillable PDFs of all required forms for free at USCOURTS.gov. You’ll complete your bankruptcy petition and forms called schedules. Use these to list your assets, debts, income, and expenses.

If you work with a bankruptcy attorney, you’ll start by filling out a questionnaire. The attorney will use your answers to complete the official forms.

Get Your Filing Fee

It costs $338 to file a Chapter 7 bankruptcy case. Many people qualify for a fee waiver. Check the Michigan Fee Waiver Eligibility table below to see if you qualify based on your income.

If the court doesn’t approve your waiver, you can apply to pay the fee in up to four installments. This option helps if you need to file quickly to stop wage garnishment or debt collection.

As soon as you file your case, the automatic stay goes into effect. This legal protection stops most collection actions right away.

If you miss an installment payment, the court can dismiss your case. You won’t get a refund. If you’re not in a rush, wait until you’ve saved the full $338 before filing.

Print Your Bankruptcy Forms

If you file on your own, print your completed forms in black ink on white, letter-size paper (8.5 x 11 inches). Print single-sided only. The court won’t accept forms printed on both sides.

Double-check that you’ve printed every required form. Take your time signing each page that asks for a signature. Missing a form or signature can delay your case.

If you work with a bankruptcy attorney, they’ll usually print the forms for you. You’ll sign them, and they’ll file your case electronically.

File Your Forms With the Michigan Bankruptcy Court

Michigan has two bankruptcy districts: Eastern and Western. If you file on your own, mail or hand-deliver your printed forms to the court. Only attorneys can file electronically.

As soon as you file, you’re protected by the automatic stay. This powerful protection immediately stops most collection actions, including:

• Wage garnishment
• Foreclosure
• Repossession
• Collection calls and letters

The automatic stay gives you breathing room and relief right away.

Mail Documents to Your Trustee

After you file, the court assigns a Chapter 7 bankruptcy trustee to oversee your case. The court also schedules your 341 meeting with your trustee. You must send certain documents to your trustee at least seven days before your 341 meeting.

Many trustees send a letter listing the documents they need. Reach out to your trustee soon after you file. Confirm what to send and how to send it. Some accept documents by email. Others want hard copies by mail.

In Michigan, you’ll usually need to send:

• Pay stubs from the 60 days before you filed
• Your two most recent tax returns
• Any vehicle titles (certificates of title)
• Current statements from secured creditors
• Copies of deeds, leases, mortgages, or land contracts
• Property tax statements
• Any appraisals for valuable assets
• Proof of casualty insurance (like car or home insurance)
• Business records, if you own a business
• Bank statements for the last 90 days (Western District) or 12 months (Eastern District)

Make sure your most recent bank statement covers the date you filed your case.

District-specific requirements:

• Western District: Include a divorce judgment or domestic support order, if applicable
• Eastern District: Include credit card statements along with other documents

Take the Second Required Course: Debtor Education/Financial Management

After you send documents to the trustee, complete the second required course. This financial management course helps prepare you for your financial fresh start.

Take the second course through an approved provider for your district. Find one on the U.S. Trustee’s website. Select Michigan, then choose your Judicial District.

After you finish, you’ll get a certificate to file with the court. File it within 60 days of your 341 meeting. If you don’t, you won’t get the bankruptcy discharge. That’s the court order that wipes out your eligible debts.

Attend Your 341 Meeting of Creditors

About a month after you file, you’ll attend a short meeting called the 341 meeting. The name sounds intimidating, but don’t worry. It’s usually a brief conversation between you and your bankruptcy trustee. Though creditors are allowed to show up, they very rarely do.

Most 341 meetings are held via phone or video conference. If yours is in person, it won’t be in a courtroom or in front of a judge.

At the meeting, the trustee reviews your bankruptcy forms. They ask a few questions to confirm your information. You answer under oath. Answer honestly, and things usually go smoothly.

Watch for letters or emails from the court or trustee with meeting details. You need a photo ID (like a driver’s license) and your Social Security card. For phone meetings, the trustee may ask you to send copies at least seven days in advance.

In most Chapter 7 cases, the 341 meeting is quick and uneventful.

Deal With Your Car

Many people worry about losing their car in bankruptcy. The truth is that many filers keep their vehicle. Your options depend on whether you own it, lease it, or have a loan.

If You Own the Car

If you own your car outright (no loan or lease), you can usually keep it. It must be covered by a bankruptcy exemption.

• Using federal exemptions: Protect up to $5,025 of your car’s value
• Using Michigan’s exemptions: The limit is $4,250

If your car is worth less than the exemption amount, it’s likely safe.

If You Lease the Car

If you’re leasing a car, you have two main options:

• Reject the lease: Give the car back and end the lease with no penalties
• Assume the lease: Keep the lease going and continue driving the car under the same terms

If You Have a Car Loan

To keep a car with a loan, you must be current on payments. Your lender may ask you to sign a reaffirmation agreement. You agree to keep making payments on the loan even after your other debts are discharged.

If you can’t afford the loan or don’t want to keep the car, you can surrender it during bankruptcy. Give the car back to the lender. You won’t owe anything else, even if the car is worth less than the loan balance. You can buy a more affordable car after your case is over.

If You’re Behind on Car Payments

Chapter 7 doesn’t help you catch up on missed car payments. If you want to keep your car but are behind, talk to a bankruptcy attorney about Chapter 13. Chapter 13 gives you time to catch up through a structured repayment plan.

Unlike Chapter 7, which finishes in a few months, Chapter 13 lasts 3-5 years. You make regular payments to a court-appointed trustee.

Michigan Bankruptcy Means Test

To file for Chapter 7 bankruptcy, there’s a two-step process. It’s called the means test because it checks if you have the means to repay your debt.

Here’s how it works:

1. Check your monthly income: Based on income you received over the last six full calendar months before filing. If your income is below Michigan’s median for your household size, you automatically pass.
2. Take the means test (if needed): If your income is above the median, move to the second part. It considers your regular living expenses. This shows how much disposable income you have. If you don’t have enough to pay off a significant portion of your debts, you may still qualify for Chapter 7.

Data on Median Income Levels for Michigan

Review the current median income standards to see if you qualify for Chapter 7 without taking the full means test.

Data on Poverty Levels for Michigan

Check if you qualify for a fee waiver. You’re eligible when your income is under 150% of the poverty level.

Michigan Bankruptcy Forms

Most bankruptcy forms are federal forms used across the country. In Michigan, you’ll also need a few local forms based on your district.

Both the Eastern and Western Districts have their own requirements. You’ll also need to prepare a mailing matrix. That’s a list of all your creditors. Each district has specific rules about formatting this list.

• The Eastern District provides a detailed checklist of all required local forms, including instructions for the creditor matrix.
• The Western District requires two specific local forms.

Michigan Districts & Filing Requirements

Michigan is split into two federal bankruptcy districts. Each district has its own court rules and local forms. Check which district you’re in before you file.

Use the court locator tool to confirm your district and review filing guidelines.

You’ll pay the bankruptcy court’s $338 filing fee by cash, money order, or cashier’s check. If you can’t afford it, include the fee waiver application with your bankruptcy paperwork.

Submit your bankruptcy paperwork in person or by mail.

Eastern District of Michigan

The Eastern District of Michigan is divided into three divisions and covers 35 counties.

• Bay City Division: Alcona, Alpena, Arenac, Bay, Cheboygan, Clare, Crawford, Gladwin, Gratiot, Huron, Iosco, Isabella, Midland, Montmorency, Ogemaw, Oscoda, Otsego, Presque Isle, Roscommon, Saginaw, and Tuscola counties
• Detroit Division: Jackson, Lenawee, Macomb, Monroe, Oakland, St. Clair, Sanilac, Washtenaw, and Wayne counties
• Flint Division: Genesee, Lapeer, Livingston, and Shiawassee counties

The Eastern District provides a detailed checklist of all required local forms.

What To Bring to the 341 Meeting

If your case is in the Eastern District, bring specific documents to your 341 meeting:

• Proof of your income and expenses from the year before you filed
• Life insurance policies
• Proof of any joint debts
• Details about divorce settlements or domestic support obligations
• Keys to any non-exempt vehicles or property

Western District of Michigan

The Western District of Michigan is divided into five divisions:

• Grand Rapids Division: Barry, Ionia, Kent, Mecosta, Montcalm, Muskegon, Newaygo, Oceana, and Ottawa counties
• Marquette Division: All counties in the Upper Peninsula
• Kalamazoo Division: Allegan, Berrien, Branch, Calhoun, Cass, Hillsdale, Kalamazoo, St. Joseph, and Van Buren counties
• Lansing Division: Clinton, Eaton, and Ingham counties
• Traverse City Division: Antrim, Benzie, Charlevoix, Emmet, Grand Traverse, Kalkaska, Lake, Leelanau, Manistee, Mason, Missaukee, Osceola, and Wexford counties

The Western District requires two specific local forms for Chapter 7 filers: an asset protection report and the creditor matrix.

Michigan Bankruptcy Exemptions

Bankruptcy exemptions are laws that let you keep certain property when you file. In Michigan, you can choose to use either the state exemptions or the federal exemptions. You can’t use both.

Key differences between the two:

• If you’re filing with a spouse, Michigan lets you double some exemption amounts (but not the homestead exemption)
• Michigan’s homestead exemption protects up to $46,125 of equity in your home (more generous than the federal exemption of $31,575)
• If you’re 65 or older or have a disability, Michigan increases the homestead exemption to $69,200

Exemptions play a big role in what property you can keep. Michigan gives you options.

Michigan Bankruptcy Lawyer Cost

In Michigan, the cost to hire a Chapter 7 bankruptcy lawyer usually starts around $1,100. It can be much more depending on how complex your case is.

Cost is important, but it’s not the only thing to think about. Consider:

• The lawyer’s experience with Chapter 7 cases
• Reviews or referrals from past clients
• Whether you felt comfortable and understood during your meeting

Filing for bankruptcy is a big step. If you choose to work with a lawyer, finding someone you trust can make the process less stressful.

Michigan Legal Aid Organizations

If you’re not comfortable filing for bankruptcy on your own, you may get help from a legal aid organization. These nonprofits offer free or low-cost legal assistance to people who qualify.

To get help, you’ll usually need to meet certain income criteria and complete an application. Legal aid is a good option if you want guidance but can’t afford a private attorney.