Category Archives: Bankruptcy Laws

How Is My Family Pet Treated in Bankruptcy

Pets must be listed and valued along with the rest of your property and assets in a Chapter 7 or Chapter 13 bankruptcy petition—but so can the expense related to the pet ownership, which can be advantageous.

Click here to read more about pets in bankruptcy on the new Michigan Bankruptcy Blog of Michigan Bankruptcy Attorneys The Hilla Law Firm, PLLC.

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

Michigan Bankruptcy Exemptions Found Constitutional by the Sixth Circuit

An important new decisionRichardson v. Schafer, was handed down this week by the Sixth Circuit Court of Appeals finding that Michigan’s bankruptcy exemptions are, in fact, Constitutional, contrary to the arguments made by Western District of Michigan Chapter 7 Bankruptcy Trustee Thomas Richardson.

The argument centered on Michigan’s state bankruptcy exemption scheme, and, in particular, on the homestead exemption, which allows $30,000 of equity in a person’s primary residence to be exempted (that is, protected from liquidation/sale by the Chapter 7 bankruptcy Trustee), or up to $45,000 if the homeowner filing for bankruptcy is over the age of 65.

Alternatively, the Federal exemptions allow a homestead exemption of just(currently) $21,625.00.

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If I Own my Home Free and Clear, Will I Lose it in a Chapter 7 Bankruptcy?

If you own your home free & clear of any mortgage lien, a Chapter 7 bankruptcy may be a risky process for you, and a Chapter 13 bankruptcy may be a safer form of debt relief for you.

Click here to read more about protecting your home from liquidation in a Chapter 7 bankruptcy on the new Michigan Bankruptcy Blog of Michigan Bankruptcy Attorneys The Hilla Law Firm, PLLC.

If you are a southeastern Michigan resident interested in filing for bankruptcy, please feel free to call me at (866) 674-2317 or email me at john@hillalaw.com to schedule a free, initial consultation.

Can I Retain a Social Security Disability Benefit Payment in a Chapter 7 Bankruptcy?

The extent to which a Social Security Disability payment or settlement can be exempted and protected in Chapter 7 bankruptcy depends greatly upon where your bankruptcy was filed, what the case-law of that jurisdiction is, and whether you have already received the payment or are just expecting it at the time that you file your Chapter 7.

Click here to read more about social security disability settlements in Chapter 7 bankruptcy on the new Michigan Bankruptcy Blog of Michigan Bankruptcy Attorneys The Hilla Law Firm, PLLC.

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

Can I Still Make Charitable Contributions or Tithe in Bankruptcy?

A monthly expense dedicated to regular and documented charitable giving or tithing is an allowed expense under the US Bankruptcy Code.

The effects of this allowance will vary depending on whether your are filing Chapter 7 or Chapter 13, and, depending upon the size of the expense, you may encounter skepticism from US Trustees or Chapter 13 Trustees in the bankruptcy process.

Click here to read more about charitable giving and tithing in bankruptcy on the new Michigan Bankruptcy Blog of Michigan bankruptcy attorneys The Hilla Law Firm, PLLC.

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

Can I Lower my Salary or Wages to Pass the Chapter 7 Bankruptcy Means Test if I am Self-Employed?

Some small business owners inquire as to the possibility of artificially lowering their income or taking less wages out of their business prior to filing a bankruptcy petition in order to pass the Chapter 7 means test.

This possibility is fraught with peril for uninformed individuals. Click here to read more about whether one can lower wages to pass the means test in bankruptcy on the new Michigan Bankruptcy Blog of Michigan bankruptcy attorneys The Hilla Law Firm, PLLC.

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

Will Bankruptcy Discharge my Condominium Association Fees?

Past-due condominium dues and fees owed at the time of filing of a Chapter 7 or Chapter 13 bankruptcy petition in Michigan will be discharged by the bankruptcy just like any other credit card or medical debt. However, you will be required to pay ongoing dues from the date of filing of the bankruptcy petition forward, through the point at which you are no longer the legal, titled owner of the property. That is, after a full foreclosure of the property by the mortgage-holding bank after the bankruptcy.

Click here to read more about condo association dues in bankruptcy on the new Michigan Bankruptcy Blog of Michigan Bankruptcy Attorneys The Hilla Law Firm, PLLC.

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