Category Archives: Eviction and Bankruptcy

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

Posted on February 6, 2012 | 3 Comments

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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What Happens if My Creditors Keep Calling after I File my Bankruptcy Petition?

Posted on October 8, 2009 | Leave a comment

In Detroit, Michigan, where I practice bankruptcy law on behalf of consumers, and every other jurisdiction in the United States, it is true that, once you file a petition for either Chapter 7 or Chapter 13 bankruptcy, all collection attempts against you must cease. The reason for this is that, as I’ve discussed in many of my posts on this blog, upon the filing of the bankruptcy petition, an “automatic stay” goes into effect against all of your creditors’ collection attempts. This automatic stay, which originates in Section 362(a) of the US Bankruptcy Code, prevents creditors from calling, sending bills or letters, garnishing your wages or bank accounts or state income tax refunds, or foreclosing upon or repossessing your property. It is a sweeping stay that is intended to freeze all of your incoming and outgoing assets and liabilities so that the bankruptcy court can properly adjudicate the bankruptcy process.

Most creditors, upon receiving notice of the bankruptcy, do indeed stop collection attempts cold. When the bankruptcy petition is filed, notice is sent both electronically and by mail to every creditor listed in the petition. Creditors who are inadvertantly not listed in the petition may be notified by you or your attorney even after the petition is filed, and, generally, even at that point, they will understand that they need to freeze all collection efforts.

Every once in a while, though, a creditor (usually one of the countless, dubious collection agencies across the country) will ignore the notice and continue harassing debtors who have filed for bankruptcy, even after having been informed of that fact and provided with the debtor’s case number and filing-date. What then?

At that point, there are a number of remedies available to you and your attorney. Primarily, under Section 362(k) of the US Bankruptcy Code, these violations of the automatic stay may be actionable. Likewise, such efforts may also be actionable as contempt of court. What that means is that your attorney may file a motion against that creditor in the Bankruptcy Court which may result in an award of $100 per contact attempt for you, as well as your attorney’s fees paid by the creditor.

In short, the automatic stay against collection attempts is one of the many protections and advantages the law offers those who file for bankruptcy.

If you are a southeast Michigan resident and are considering filing for bankruptcy, please contact me at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

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Posted in Bankruptcy Basics, Chapter 13, Chapter 7, Eviction and Bankruptcy, Garnishment, Michigan

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Can Bankruptcy Stop Me from Being Evicted?

Posted on March 25, 2009 | 4 Comments

The “automatic stay” that goes into effect upon the filing of a petition for bankruptcy has the effect, with a few exceptions, of immediately halting all collection attempts against the person filing the petition. Among the things that are “stayed” by this automatic stay are eviction attempts. Once a bankruptcy petition has been filed, either Chapter 7 or Chapter 13, landlords or other property lessors may not proceed with eviction attempts.

There are, however, a couple of notable exceptions to this rule as a result of the 2005 BAPCPA bankruptcy amendment act.

First, where the landlord or lessor, prior to the filing of the bankruptcy petition, has received a court judgment for eviction or other action allowing them to re-possess the property, the eviction will not be stopped by the automatic stay so long as the lessor is the holder of a valid rental agreement. This exception applies only to an action for possession, further, and not to claims for back-rent owed or other money judgments, among others. Additionally, the debtor retains a right to make up the money default that resulted in the judgment to a certain extent.

Second, if the eviction has been premised, as based upon the serving of a certification under penalty of perjury, on the use of controlled illegal substances on the property or endangerment to the property, the automatic stay will not apply unless the debtor successfully contests the certification and proves his or her case in this regard in a series of hearings and other proceedings. As with the first exception to the automatic stay, above, this exception also does not allow the landlord or lessor to pursue collection efforts for back-rents owed, etc.

If you are considering bankruptcy and have questions regarding the possibility of eviction before, during, or after your bankruptcy processs, please contact me at jhilla@aronofflinnell.com or (248) 977-4182 to schedule a free, initial consultation.

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Posted in Bankruptcy, Bankruptcy Basics, Bankruptcy Planning, Chapter 13, Chapter 7, Eviction and Bankruptcy

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