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Providing bankruptcy and legal services for these areas:
- Lansing
- Okemos
- Haslett
- Williamston
- East Lansing
- Holt
- Waverly
- Jackson
- Owosso
- Corunna
- St. Johns
- Stockbridge
- Fowlerville
- Flint
- Saginaw
- and the Mid Michigan area.
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Bankruptcy & Finance Articles
I hope you enjoy this small collection of articles I've written on some of the more common concerns surrounding bankruptcy. If you have any questions about anything you read here, please feel free to contact my office at (517) 347-6700.
Do you have questions about filing bankruptcy?Here are some frequently asked questions.
What type of bankruptcy should I consider?Generally there are three types of bankruptcy-a Chapter 7, known as debt liquidation, a Chapter 11, which is business reorganization, and a Chapter 13, called debt adjustment or wage earner's plan.
How often can I file bankruptcy?A Chapter 7 case can be filed eight years after the date of the previous filing. A Chapter 13 case can be filed at any time, a discharge is granted only if four years from the previous discharge.
Will bankruptcy affect my credit?A bankruptcy can stay on your credit report for ten years. The older a bankruptcy gets, the less impact on your credit. However, often if you are behind on your bills, your credit is already bad, and a bankruptcy filing will improve your credit by improving your debt to income ratio.
Can I lose my job for filing bankruptcy?No, federal law prohibits employers from discriminating against you because you filed bankruptcy.
Does bankruptcy erase all debts?Yes, with exceptions. Generally a bankruptcy does not discharge student loans, alimony, debts not listed on your bankruptcy petition, mortgages or other liens, unless you surrender the property.
What property can I keep?In general terms, an individual can exempt or protect $20,200.00 of equity in real estate, $3,225.00 of equity in an automobile, up to $10,775.00 in household goods or furnishings, and up to $1,350.00 of equity in jewelry. All approved retirement accounts, pensions, and 401Ks.
Should I file a Chapter 13 or a Chapter 7?Under a Chapter 13 bankruptcy a plan is filed showing a payment arrangement for paying of debts in a three to five year period. Individuals file a Chapter 13 generally to save a home from foreclosure or car. Persons generally file a Chapter 13 if they are behind on their house or some other debt but can catch up with payments over time.
Should I continue to make monthly payments?Only make monthly payments on debts you intend to keep like car payments or utilities. If you plan on discharging the debt in bankruptcy, do not make monthly payments.
Will bankruptcy discharge all my debts?A Chapter 7 bankruptcy will discharge most debts. Certain debts it will not discharge, like taxes or student loans. Also you may choose to keep or reaffirm certain debts in bankruptcy like mortgages or car loans which are secured by the property.
When are my debts discharged in bankruptcy?The day you file bankruptcy, all your debts are frozen. Eventually approximately 4 to 5 months after filing you receive a formal notice from the bankruptcy courts that your debts have been discharged.
Should I pay bills with money from my IRA?Most retirement accounts 401K, IRA's, pensions, ERISA accounts are exempt under bankruptcy laws and protected. Paying debts with money from these accounts is usually not a good idea.
How does a bankruptcy stop a home foreclosure?The same day and minute you file for bankruptcy protection, all debts are frozen all collections activity must stop. Therefore if you file bankruptcy the day before a foreclosure sale, the sale must stop. A Chapter 13 bankruptcy then gives you the time to prepare a plan to catch up on house payments.
If I file bankruptcy will I lose everything?No, the bankruptcy code sets forth limits on the amount and value of the type of property you may keep. The type of property you have is divided into categories; most homes hold assets, as an example, and are exempt with a Ten Thousand ($10,000.00) Dollar limit.
Can bankruptcy help with taxes?While many kinds of taxes are not dischargeable, the filing of a bankruptcy case will stop collection activity for taxes owed. A Chapter 13 bankruptcy will provide an organized monthly payment and may discharge certain types of taxes and penalties and interest that have been due and payable for at least three years.
What happens to lawsuits and judgments when filing bankruptcy?The filing of a bankruptcy immediately stops or freezes all lawsuits, judgment or collection activity. The court process or collection activity can go no further. If a creditor has a judgment and is garnishing your wages, the garnishments can be stopped.
How will filing bankruptcy affect my credit?Bankruptcy filing is bad for your credit, however, in many situations, it actually improves your credit for some very logical reasons. One is that the filing of bankruptcy eliminates your old debt, making it easier for you to take on and pay new debt. Additionally you can not file a Chapter 7 bankruptcy again for eight years.
What is a Chapter 7 bankruptcy?A Chapter 7 bankruptcy refers to Chapter 7 of the Bankruptcy Code. Under a Chapter 7 bankruptcy, there is no limit to how much debt a person may discharge. The amount of household income determines if you qualify for a Chapter 7 bankruptcy. A person can file for Chapter 7 bankruptcy once every eight years.
What is a Chapter 13 bankruptcy?In a Chapter 13 bankruptcy, you file a plan that pays off a percentage of your debt in a time span of three to five years. The remaining percentage of your debt is discharged. Two of the factors that determine if you should file a Chapter 7 bankruptcy or a Chapter 13 instead are household income, and the amount of assets you have. Many persons file a Chapter13 bankruptcy to save a home or automobile as the Chapter 13 plan gives you time to catch up on payments.
What is a Chapter 11 bankruptcy?A Chapter 11 bankruptcy is business reorganization. It is similar to a Chapter 13 in that a plan is filed that pays off a percentage of the company's debt over time and discharges the remaining debt. A Chapter 11 bankruptcy is designed for business or individuals whose debts are very large.
What does it cost to file bankruptcy?The filing fee for a Chapter 7 bankruptcy is Two Hundred Ninety Nine ($299.00) Dollars plus attorney fees. The filing fee for a Chapter 13 bankruptcy is Two Hundred Seventy-Four ($274.00) Dollars plus attorney fees. The amount of attorney fees can vary from case to case depending on the amount of debts and type of debts of the filer has and income.
Will I have to go to court?In a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, generally speaking there is only one hearing called the meeting of creditors. The bankruptcy trustee will be there with any creditors that choose to attend. Most of the time, no creditors attend and the trustee conducts the meeting with a few questions about the bankruptcy filer's financial condition and assets.
If I am married can I file by myself?Yes, you may file together or individually. If you file together, you double the amount of exemptions. If, however, you have joint debts and only one spouse files, the other spouse will still be liable for the joint debts.
Can I get credit after bankruptcy?Yes, there are several kinds of credit available depending upon the lender and your work history. Some lenders will give you a car loan right away, but it is usually at a high rate of interest. Also, you can get a secured credit card which is backed by your deposit in a bank account.
Can an employer discriminate against me for filing bankruptcy?The Bankruptcy Code prohibits employers and government agencies from discriminating against you because you have filed bankruptcy. | |
| Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
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Lansing Michigan Bankruptcy Attorney ~ Chapter 13 Bankruptcy Michigan ~ Chapter 7 Bankruptcy Attorney Michigan |
The Law Office of Gene F. Turnwald
2160 Hamilton Rd., Okemos, MI 48864
(517) 347-6700 | fax: (517) 347-6716 |
| Serving Lansing, Okemos, Haslett, Williamston, East Lansing, Holt, Waverly, Jackson, Owosso, Corunna, St. Johns, Stockbridge, Fowlerville, Flint, Saginaw, and the Mid Michigan area. | |
