Category Archives: Michigan

How Can I Save My Home with a Chapter 13 Bankruptcy?

Posted on January 9, 2012 | 3 Comments

While Bankruptcy is one of the most cost-effective and efficient legal means of walking away from an underwater or foreclosed home available, it is also, under the right circumstances, a better means of saving a home in danger of foreclosure than other non-bankruptcy strategies, such as mortgage modification.

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Posted in Bankruptcy Process, Chapter 13, Foreclosure, Home Mortgages and Bankruptcy, Michigan, Mortgage Modifications, Real Estate, Short Sales

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What Is Chapter 13 Bankruptcy?

Posted on January 5, 2012 | 3 Comments

Chapter 13 bankruptcy is a “reorganization” bankruptcy rather than a complete liquidation of debt as in a Chapter 7. A Chapter 13 is, basically, a payment plan enforced by the Federal Bankruptcy Court upon all of your creditors, whether the debt is a “dischargeable” debt like a credit card or “non-dischargeable” debt like a child support arrearage or recent income taxes owed. Contrary to popular belief, you are not required to pay back 100% of what you owe to your creditors in a Chapter 13.

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Posted in Bankruptcy Process, Businesses in Bankrutpcy, Chapter 13, Home Mortgages and Bankruptcy, Income, Michigan, Property, Tax debt

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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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Getting a Refund in a Chapter 13: Will Your Trustee Let You Have It?

Posted on December 5, 2011 | Leave a comment

Guest Post by Atlanta Bankruptcy Attorney Peter Bricks.

Many people use the tax return system as a pseudo savings account. They count on getting a federal and state refund every year and immediately use all the money to pay for all the necessary home upgrades, car repairs, medical bills, etc.. that they have been waiting to fund all year.

Put those same people as debtors in a Chapter 13 bankruptcy, and they should consider altering that strategy. For starters, depending on your district, your confirmed plan probably requires you to turn over your tax refund to your bankruptcy trustee.  That doesn’t necessarily mean the debtor will not get his/her refund, just that it’s no guarantee and might require a motion for the court’s approval to retain the tax refund. (Note that, in the Eastern District of Michigan, tax refunds ARE required to be turned over to Chapter 13 Trustees for the life of a Chapter 13 Plan. – JMH)

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Posted in Bankruptcy Process, Chapter 13, Michigan, Tax debt, Tax Returns and Bankruptcy

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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, please contact me at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

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Posted in Chapter 7, Income, Means Test, Michigan

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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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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 | 1 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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Did I Reaffirm my Mortgage Debt in My Bankruptcy?

Posted on July 26, 2011 | 1 Comment

In addition to consumer bankruptcy, my firm does a lot of non-bankruptcy debt relief work for Michigan consumers, some of whom have already filed a Chapter 7 bankruptcy with other law firms. Largely, these clients are attempting to save a home through a mortgage modification or other non-bankruptcy negotiation. The first question we have for these clients is: did you reaffirm your mortgage note obligation in your bankruptcy?

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Posted in Chapter 7, Home Mortgages and Bankruptcy, Michigan, Mortgage Modifications, Reaffirmation Agreements, Real Estate, Short Sales

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