Tag Archives: income

What Happens If I Get Married While In a Chapter 13 Bankruptcy?

In a Chapter 13 bankruptcy, when you add a new person to your household, you are also adding new income, potentially, and new expenses. This can have an impact upon the “net income” available to make a Chapter 13 plan payment, for better or worse.

Click here to read more about the effect of marriage during a Chapter 13 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 Chapter 7 or Chapter 13 bankruptcy, please contact us at (866) 674-2317 or john@hillalaw.com to schedule a free, initial consultation.

New Bankruptcy Means Test Numbers for 11/1/2011

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.

Is Social Security “Income” in Bankruptcy?

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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If I Am Filing for Bankruptcy but My Spouse Is Not, Do I Need to Provide His or Her Income Information?

It is perfectly feasible for a married individual to file Chapter 7 or Chapter 13 bankruptcy without his or her spouse doing the same thing.

However, there are points at which your non-filing spouse will be required to participate in your bankruptcy filing.

To read more on this topic, click here to read our full article on the new Michigan Bankruptcy Blog of 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.

Can Bankruptcy Stop My Garnishment?

Consumers who have had difficulty making ends meet often find themselves on the wrong end of a court judgement after their creditors have taken them to court to pursue their debt. These judgements typically result in wage or tax-refund garnishment, often at the expense of the consumer’s ability to pay more pressing necessities, such as rent, a mortgage payment, or medical expenses.

That being the case, the first question I often hear from potential clients is, “Can filing for bankruptcy stop this garnishment?!?” Sometimes the garnishment has already begun, sometimes it is imminent, but it is always a great worry to consumers who do not have a penny to spare from their paychecks when it comes to simply keeping a roof over their children’s heads that month.

Bankruptcy, however, can stop a garnishment cold in its tracks. To read more, click here to read our full article on stopping wage, bank account, or tax return garnishment with a Michigan Chapter 7 or Chapter 13 bankruptcy on the new Michigan bankruptcy blog of The Hilla Law Firm, PLLC.

If you are suffering from an income loss due to garnishment or will soon have your wages or other incoming funds garnished, please contact me us at john@hillalaw.com or (866) 674-2317  to schedule a free, initial consultation, and we will work together to secure the monthly income you depend on.

What Is The Means Test and How Does It Work in Chapter 7 Bankruptcy?

The Means Test is both the test for Chapter 7 bankruptcy eligibility and the means of determining whether you may file a 36 or 60-month Chapter 13 bankruptcy payment plan and potentially governing the amount of your monthly Chapter 13 plan payment.

To read more about the Means Test, click here to read our full article on the Means Test in Michigan Chapter 7 and Chapter 13 bankruptcy on the new Michigan Bankruptcy Blog of 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.

What Happens to my Unemployment Benefits if I File Bankruptcy?

Unemployment benefits in Michigan must be disclosed both as a source of income and, as a right to funds, as a personal asset. Unemployment benefits can affect the Chapter 7 bankruptcy means test, which governs your eligibility for Chapter 7 bankruptcy, and it can affect the amount you must pay monthly in a Chapter 13 bankruptcy payment plan.

For more information, read our full post on this topic on the new Michigan bankruptcy blog of The Hilla Law Firm, PLLC here.

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