Tag Archives: exemptions

What Happens in a Chapter 7 Bankruptcy if All of My Property Isn’t Exempt?

 The question of what happens in the Chapter 7 Bankruptcy process when a filing debtor’s property is NOT fully protected by the available bankruptcy exemptions is a very basic question—but the answer to that question is not one that will be easily located in any bank of public information on the subject.

Click here to read more about non-exempt property in Chapter 7 bankruptcy on the new Michigan Bankruptcy Blog of The Hilla Law Firm, PLLC.

If you are a southeast Michigan resident considering filing for bankruptcy, please feel free to contact us 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.

What is a Contingent Claim and Can I Exempt One in Chapter 7 or Chapter 13 Bankruptcy?

All assets must be disclosed in your bankruptcy petition—even assets you may not receive or which may not have value until some other event occurs in the future. Such assets are “contingent,” but they are still assets.

Click here to read more about contingent claims 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 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.

Do I Need to List Every Debt in my Chapter 7 or Chapter 13 Bankruptcy? (Revisited)

I’ve written before on the subject of whether all debts must be listed in a Chapter 7 or a Chapter 13 bankruptcy petition as an answer to the very commonly asked question, “Can I leave my favorite credit card out of the bankruptcy?”

The answer to that question is an easy, “No, you cannot leave a debt out of the bankruptcy; the US Bankruptcy Code requires that all assets and all liabilities (debts) must be listed in either a Chapter 7 or Chapter 13 petition—and treated in a Chapter 13 payment plan one way or another.

However, there are additional reasons why you would want every debt listed, even if you otherwise desired to leave it out of the bankruptcy:

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Are Assets in a Trust Protected in Chapter 7 Bankruptcy in Michigan?

Placing assets into a trust may not be an effective way to protect your personal property if you are planning to file a bankruptcy in Michigan.

Click here to read more about the protection of assets in trusts during Chapter 7 or Chapter 13 bankruptcies in Michigan 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.