Category Archives: Chapter 7

What Is My Redemption Period in Michigan if I Have More Than 3 Acres of Land?

Posted on February 6, 2012 | Leave a comment

As of December, 2011, the amount of acreage owned is no longer a factor in determining the length of the post-foreclosure sheriff’s sale redemption period in Michigan. Prior to December, 2011, foreclosure of land more than 3 acres required a “redemption period” of 12 months as opposed to the 6 months required for non-abandoned property of less than 3 acres.  

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Posted in Bankruptcy, Bankruptcy Laws, Bankruptcy Process, Chapter 13, Chapter 7, Eviction and Bankruptcy, Foreclosure, Home Mortgages and Bankruptcy, Michigan, Real Estate

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Is There Really a Stigma to Filing Bankruptcy?

Posted on December 29, 2011 | Leave a comment

One of the concerns most frequently expressed to me in consultations with potential Chapter 7 and Chapter 13 bankruptcy clients in my southeast Michigan practice is whether their reputations will be ruined by the filing of a bankruptcy. It is almost universally believed, I gather from my clients, that a bankruptcy, once filed and once known of by the general public, will result in both a sullied business and personal reputation and also in a complete inability to get credit of any sort of years to come.

These are serious concerns for people who do see bankruptcy as a way out of what very realistically may be a hopeless financial situation but also a potential impediment for moving forward afterward.

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Posted in Bankruptcy Planning, Bankruptcy Process, Chapter 13, Chapter 7, Michigan

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Can I File for Bankruptcy if I Reside Outside of the United States?

Posted on December 22, 2011 | Leave a comment

A bankruptcy can be filed in any of the Federal judicial districts in the United States which is deemed to be the proper “venue” for the case under Federal law, and, under Federal law, that venue, or location for filing, is any Federal jurisdiction “… in which the domicile, residence, principal place of business in the United States, or principal assets in the United States, of the person or entity that is the subject of the case have been located for the one hundred eighty days immediately preceding such commencement, or for a longer portion of such one-hundred-and-eighty-day period than  in any other district.”

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Posted in Bankruptcy Laws, Bankruptcy Process, Chapter 13, Chapter 7, Michigan

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New Bankruptcy Means Test Numbers for 11/1/2011

Posted on October 26, 2011 | 9 Comments

The bankruptcy means test median household income numbers for Michigan have been udpated, effective 11/1/2011. The new household median incomes are:

  • 1 person household: $43,677
  • 2 person household: $50,079
  • 3 person household: $58,467
  • 4 person household: $70,237

 For each individual in a household over 4, $7500 is added to the median.

This is a slight increase over the prior numbers and may enable more people to qualify for Chapter 7 bankruptcy.

If you are a southeast Michigan resident and are considering filing for bankruptcy and have questions about whether you qualify, please contact me at jhilla@aronofflinnell.com or (248) 977-4182 to schedule a free, initial consultation.

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Posted in Chapter 7, Income, Means Test, Michigan

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A Hidden Advantage of Not Reaffirming: the Freedom to Move

Posted on October 6, 2011 | 1 Comment

 Guest Post by Atlanta Bankruptcy Attorney Peter Bricks.

I often grapple with chapter 7 debtors over getting them to understand that they do not really need to reaffirm their mortgage to keep their home.

The primary reasons I emphasize them not reaffirming is that the reaffirmation means the debt is not discharged in the bankruptcy, missed payments can continue to harm the debtors credit, the debtor will be liable in the future for a deficiency balance and the bank can still foreclose if payments are not made in the future anyway, regardless of whether the debtor reaffirmed or not.

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Posted in Chapter 7, Property, Reaffirmation Agreements, Real Estate

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How Much Can my Chapter 7 Banrkuptcy Trustee Can Take from Me?

Posted on October 5, 2011 | Leave a comment

Most Chapter 7 bankruptcy cases that I handle in my area of Michigan are “no-asset” bankruptcy cases, meaning that, after I  have exempted the filing individual’s personal assets from the bankruptcy estate created by the filing of the bankruptcy petition, there is nothing left available for the Trustee to liquidate (seize and sell off for cash) and distribute to creditors. In fact, the great majority of Chapter 7 bankruptcy cases filed anywhere are “no-asset” cases of this sort.

However, some cases are “asset” cases that do involve a transfer of assets from the filing individual’s ownership to the creditors whose debts he or she is discharging by way of the Chapter 7 Trustee assigned to the case, whose job is to do just that.

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Posted in Chapter 7, Exemptions, Michigan, Personal Property in Bankruptcy, Property, Real Estate

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Home Mortgage Loan Modification and Bankruptcy: Before, During and After Your Bankruptcy

Posted on September 29, 2011 | 5 Comments

The real estate bubble is one the primary culprits behind the rise in individual bankruptcy filings. Currently an astonishing 22.5% of home borrowers have home mortgage balances with negative equity. Many debtors therefore are looking for ways to reduce their monthly payments, if not get out of their home obligation entirely.

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Posted in Chapter 7, Chapter 13, Home Mortgages and Bankruptcy, Reaffirmation Agreements, Real Estate, Mortgage Modifications

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Will My Chapter 7 or Chapter 13 Bankruptcy Affect my Family?

Posted on September 7, 2011 | 1 Comment

One of the most common questions I receive from my potential Chapter 7 or Chapter 13 Michigan bankruptcy clients is with regard to the effect of an individual’s bankruptcy upon his or her family-members. Of course, there is at least an indirect effect: the income and debt-load of a family-member always has a general effect on those around him- or herself.

 These potential clients mean something different than, though. They want to know what specific effect their bankruptcy will have on their spouse’s credit report, their children’s credit reports, employment prospects or business prospects of others in the household, ability to borrow student loans, and a host of other specific issues.

Generally, my response is that your bankruptcy will have no effect upon your family-members. However, there are a few instances where this may not be so.

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Posted in Bankruptcy Laws, Bankruptcy Planning, Chapter 13, Chapter 7, Employment discrimination, Marriage and Bankruptcy, Michigan, Student Loans

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Can a Chapter 7 Bankruptcy Trustee Sell My House after My Case Discharge?

Posted on August 30, 2011 | Leave a comment

The practice of a Chapter 7 bankruptcy Trustee seizing and selling real estate after it is surrendered in bankruptcy and then sold at foreclosure sheriff’s sale is a phenomenon may be primarily local to the Detroit, Michigan bankruptcy courts. However, it has become more and more common for a Chapter 7 bankruptcy Trustee, in this area, after a case has been discharged, to re-sell real estate that has been surrendered in the bankruptcy in order to gain proceeds from the sale that may be distributed to a bankruptcy debtor’s creditors—and, of course, net a percentage “fee” for the Trustee.

How is this possible?

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Posted in Chapter 7, Foreclosure, Home Mortgages and Bankruptcy, Michigan, Property, Real Estate, Tax debt, Uncategorized

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Is Income Tax Debt Dischargeable in Bankruptcy?

Posted on August 9, 2011 | 2 Comments

Income tax debt is, under some circumstances, dischargeable in Chapter 7 bankruptcy. Even outside of those circumstances, it is at least “treatable” in a Chapter 13 bankruptcy in a manner that can be a much better deal for the taxpayer than any of the payment schemes offered by the IRS.

Income tax debt, whether Federal or state income tax debt, is, for starters, classified as a “priority” claim by the Bankruptcy Code. In a Chapter 7 bankruptcy context, that means that, unless the debt meets certain criteria, it is non-dischargeable and the bankruptcy will not affect the filing debtor’s obligation to pay it. In a Chapter 13 bankruptcy context, “priority” classification means that the debt must be paid in its entirety within the Chapter 13 bankruptcy payment plan (60 months maximum).

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Posted in Chapter 13, Chapter 7, Debt Listing, Tax debt, Tax Returns and Bankruptcy, Uncategorized

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