How to File for a Cheap Bankruptcy in Michigan

If you're overwhelmed by debt, you can file for bankruptcy, but bankruptcy isn't free. The federal 2010 filing fees will cost a Michigan resident close to $300, and the fee is one of several debts bankruptcy will not wipe out. If you feel the fee is more than you can handle, you can pay in installments, or, if you're filing a Chapter 7 bankruptcy, you may be able to waive it completely. In Chapter 7, the court can sell off some of your assets to pay off your creditors, but once that's done, most of your debts will be erased.

• 1

  Check that you qualify for Chapter 7. If your income for the six months before you file is below the Michigan median, you qualify; if not, you may still qualify under the "means test," which adjusts your income for various expenses. The Nolo legal website has an online calculator for figuring if you pass the test. You must also take a credit-counseling course in the six months before you file; the U.S. Department of Justice has a link to accredited counselors on its website.

• 2

  Download the forms from the U.S. Courts website and file them with the bankruptcy court for your district. Michigan has courts in Bay City, Detroit, Grand Rapids, Flint and Marquette. You'll also need to file a complete record of your financial situation, including your income, expenses, assets and creditors.

• 3

  File a fee waiver along with your court forms. If your income is less than 150 percent of the federal poverty line and you can show the court that you can't even make installment payments on the fees, the court may grant you the fee waiver.