Tag Archives: Michigan

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, 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 Can a Chapter 13 Bankruptcy Help Me Pay Down my Student Loans?

Posted on September 27, 2011 | Leave a comment

I have addressed the high bar to the discharge of student loan debt in bankruptcy on this blog in earlier posts. It remains true that student loans are very largely not dischargeable in bankruptcy. However, it is not true that bankruptcy cannot assist in managing or even paying down student loan debt.

A Chapter 13 bankruptcy, on the other hand, although it will not “discharge” non-dischargeable student loan debt any more than a Chapter 7 would, can be useful in obtaining relief from student loan payments for a lengthier period of time and managing the eventual pay-down of the debt balance.

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Posted in Chapter 13, Debt Listing, Student Loans

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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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What Is the Value of my Small Business in Bankruptcy?

Posted on July 7, 2011 | 2 Comments

A business owned by an individual filing for bankruptcy is property that must be valued, listed, and exempted (protected) in the bankruptcy the same as any other piece of property owned by that individual. If the business is incorporated, it is a separate legal entity that may or may not be filing bankruptcy along with its owner’s personal bankruptcy, but, regardless, it is an item of some potential value that must be accounted for as an aggregate concern in the individual’s personal bankruptcy.

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Posted in Business Debt, Businesses in Bankrutpcy, Chapter 13, Chapter 7, Personal Property in Bankruptcy, Property

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Is My Personal Injury Settlement Protected in Bankruptcy?

Posted on June 28, 2011 | 1 Comment

A personal injury settlement in Michigan may be protected in bankruptcy in a number of different ways depending upon the classification of the settlement funds.

Personal injury settlements may be awarded by Michigan district or circuit courts for different purposes: lost wage replacement, medical expense damages, caretaker or nursing services, and punitive damages, to name a few settlement categorizations. Depending upon which of these categorizations applies to a specific sum of settlement funds, the settlement may or may not be protectible in bankruptcy.

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Posted in Bankruptcy Laws, Bankruptcy Planning, Chapter 7, Civil Judgments and Bankruptcy, Exemptions, Medical Bills, Michigan, Personal Property in Bankruptcy

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Is Social Security “Income” in Bankruptcy?

Posted on June 3, 2011 | Leave a comment

Social Security benefits, both age benefits and disability benefits, are and also are NOT considered “income” within the bankruptcy process in a couple of different ways.

Income is considered in the bankruptcy process both as a measure of a debtor’s eligibility for Chapter 7 (as opposed to Chapter 13) bankruptcy and as a measure of the debtor’s ability to repay creditors some portion of the debt owed to them on monthly average basis.

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Posted in Bankruptcy Laws, Chapter 13, Chapter 7, Income, Means Test, Michigan, Uncategorized

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What Happens to my 2nd Mortgage if I File for Bankruptcy?

Posted on May 17, 2011 | 1 Comment

I have recently seen a few second mortgages “reaffirmed” in bankruptcy by some of my fellow bankruptcy attorneys. However, in Michigan, as I’ve described here, there is no reason to file what is called a reaffirmation agreement for a mortgage debt when you file a Chapter 7 bankruptcy. So long as you are current on your mortgage payments, you will likely have no issue with retaining your home (although there is the possibility that, if it is an especially “luxurious” home, the Bankruptcy Trustee appointed by the court to your case may see retention of the home as an issue of “good-faith” in your bankruptcy filing).

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

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