posted on January 31, 2019 by Russell Law Firm, P.C.
Chapter 13 Bankruptcy: Liquidation Analysis
In a Chapter 13 Bankruptcy, if you are unable to exempt all of your assets, you will need to perform a liquidation analysis (LA). The purpose of a liquidation analysis is to ensure the general unsecured creditors are receiving at least the amount they would be receiving if the unexempted assets were liquidated in a Chapter 7 bankruptcy.
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posted on January 30, 2019 by Russell Law Firm, P.C.
Why file a Chapter 13 Bankruptcy when you qualify for Chapter 7?
A Chapter 7 bankruptcy is a liquidation bankruptcy, which in essence wipes out most of an individual’s general unsecured debts (i.e., credit card and medical bills) without a need to pay the balances through a repayment plan.
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posted on by Russell Law Firm, P.C.
Chapter 13 Bankruptcy: What is a Cramdown?
A “cramdown” essentially reduces the principal balance of a secured debt from the outstanding loan amount down to the Fair Market Value. This is most often used with car loans, mobile home loans, household goods, and other personal property in a Chapter 13 Bankruptcy. This will allow an individual to pay the fair value of the property and the remaining balance would be lumped into other unsecured debt.
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posted on by Russell Law Firm, P.C.
Chapter 13 Bankruptcy: Save the Home
When an individual falls behind on their mortgage, they have the benefit of filing for a Chapter 13 bankruptcy in order to prevent a foreclosure. A unique feature of a Chapter 13 bankruptcies is that junior mortgages, a second or third mortgage, can be eliminated if the house is worth less than the balance of the first mortgage.
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posted on January 29, 2019 by Russell Law Firm, P.C.
Chapter 13 Bankruptcy: Examples of Disposable Income
Disposable Income in the bankruptcy world will be whatever is left over after taxes, insurance, and any necessary household expenses. This disposable income must then be turned over to the Chapter 13 trustee.
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posted on by Russell Law Firm, P.C.
Chapter 13 Bankruptcy: Can I Keep My Tax Refunds?
In a Chapter 13 bankruptcy, tax refunds are treated as disposable income, and as stated in other articles, by default all disposable income is to be turned over to the trustee. However, the following are the most common avenues we take to ensure our clients are able to retain some, or all of their tax refunds.
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posted on by Russell Law Firm, P.C.
Inheritances in Bankruptcy
Under a Chapter 7 bankruptcy, the trustee looks to the timing of the inheritance. If the inheritance was before filing, any amount on hand at the time of filing will become part of the estate. When it becomes part of the estate, an individual will have to exempt it in order to protect it.
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posted on October 10, 2017 by Russell Law Firm, P.C.
Grand Rapids Bankruptcy Attorney – Bankruptcy’s Effects On Credit
A common fear among individuals considering bankruptcy, is what the bankruptcy will do to their credit record and how long they will be affected. It is true that under the Fair Credit Reporting Act, this notation on your credit report will last for ten years, but the effects it may have are not always clear cut.
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posted on February 16, 2017 by Russell Law Firm, P.C.
Bankruptcy: Debt owed to the unemployment agency?
If you owed money to the Michigan Unemployment Agency, you might want to give my office a call.
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posted on January 23, 2017 by Russell Law Firm, P.C.
Bankruptcy: My mother has is mentally incapacitated, can she still file for bankruptcy? Yes.
It is possible for there to be a situation where a parent needs to file for bankruptcy, but has severe dementia, and therefore mentally incapacitated.
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