All You Need To Know About Credit Counseling Before Filing Your Michigan Bankruptcy

Before filing bankruptcy in Michigan, you must undergo credit counseling. You must also take credit counseling after you file. These classes are mandatory and there are no exceptions. You must also pass a means test and there are two major kinds of bankruptcy to consider.

Pre Bankruptcy Counseling

You must take a credit counseling course within six months of filing. This course must be one that is approved by the state. It is best to have your credit report with you when you take the training. If not, you will need a list of all of your debts. ou must file a certificate of credit counseling completion when you file for bankruptcy, and evidence of completion of debtor education after you file for bankruptcy – but before your debts are discharged. Only credit counseling organizations and debtor education course providers that have been approved by the U.S. Trustee Program may issue these certificates. To protect against fraud, the certificates are produced through a central automated system and are numbered.

Post Bankruptcy Counseling

This training must be taken before your case can be discharged. It may be best to take the training as soon as possible, after filing for bankruptcy. If you do, it may make things a little easier for your trustee at the hearing.

Means Test in Michigan

Due to 2005 regulations, a means test must be passed to file for Chapter 7 bankruptcy. Your income must be below the median income in the state (for six months prior to your filing). However, in some cases, people may be able to file if they meet other qualifications.

Chapter 7 or Chapter 13

If you do not qualify for a Chapter 7, you may be able to file a Chapter 13. Chapter 13 bankruptcies are not as restrictive as Chapter 7 bankruptcies. This is due to the fact that you are repaying many debts in a chapter 13 and in Chapter 7, most debts are being discharged or cleared.


Before filing for bankruptcy in Michigan, credit counseling classes must be taken. You must also take classes after you file. You will have to pass a means test to see if your income qualifies for Chapter 7. If not, you may be able to file for Chapter 13. In Chapter 7, debts are erased and it is harder to qualify for. Chapter 13 allows for debt repayments and is easier to qualify for. There is a lot to consider and some laws are difficult to understand. Hiring a bankruptcy attorney will make things much easier for you.

It is important to know the steps you must take before filing for bankruptcy.  If you have any questions on the process please contact David Lutz at (248) 624-5500


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Filed under Bankruptcy/Debt, David Lutz

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