You could receive Double Exemptions: If you live in a state that allows you to use federal bankruptcy exemptions, you can double your property exemptions when you file with your spouse. (If your state doesn’t allow federal exemptions, you might want to seek the double exemptions option on joint filing, if your state allows that). Filing for double exemption only works if you and your spouse own property together.
Saves time and money: Since filing fees for individual and joint applications cost the same, a couple saves money when they file together. Also , the couple would pay attorney fees for consultancy on only one application as opposed to two.
Time wise, this process is more efficient as the couple would provide only one set of documentation.(Documentation for filing for bankruptcy needs to be extensive and detailed, going through it once is definitely less tedious). The couple would also go for hearings with a trustee together as opposed to going individually.(Only one trustee hearing is required).
Gets Rid of all dischargeable debts: When only one spouse files for bankruptcy, the other would still responsible for his/her individual debt and debt incurred jointly. In a case where the couple files jointly, all the debts could be dischargeable.
Chapter 7 bankruptcy cannot permanently stop your foreclosure, but it is helpful in other ways that can help you manage a foreclosure you are facing.
Chapter 7 bankruptcy can delay your foreclosure – When you file for bankruptcy you gain an automatic stay. Fortunately, automatic stays apply to foreclosures. So then, throughout the period of your bankruptcy, a creditor cannot pursue a foreclosure. However, after your bankruptcy is completed, he/she can proceed with a foreclosure. In most cases, the creditor can request for an automatic stay to be lifted before your bankruptcy is over. The creditor would most likely have this granted by the court if he/she is able to prove they are the legal holder of a the mortgage or deed of trust to your house.
If your home is facing issues that cannot be resolved in the 3-4 months that your Chapter 7 is pending, you may want to consider filing Chapter 13 Bankruptcy to Stop the Foreclosure.
Give us a call at (616) 920-0555, for information on our $999.00 Flat-Fee Bankruptcy Service where you can get started with only $500.00 down.
If you file for bankruptcy BEFORE your landlord has a Judgment For Possession, the Automatic Stay triggers protection from an unwanted eviction. At this point, your landlord would be required to file a Motion to Lift Stay in order to proceed with the eviction in Michigan Courts.
If you file for bankruptcy AFTER your landlord has a Judgment For Possession, the Automatic Stay will not automatically give you protection from an unwanted eviction. To get this protection you would need to make a deposit with the court in an amount sufficient to cure the default.
The rules above only apply in situations where a landlord is trying to evict you from a residential property. If you are (1) being evicted from you home by your lender, post foreclosure, or (2) being evicted from a commercial property, then it does not matter whether or not a Judgment For Possession exists, the party attempting to evict you would need to lift the automatic stay before they are able to proceed with any action.
When determining how long the automatic stay will last, the first thing that needs to be determined is whether a prior bankruptcy case was dismissed in the year before the filing of the current bankruptcy.
1. If no case was dismissed in the year prior, the stay lasts until the earliest of the following:
- The date in which an order of the court terminating the automatic stay
- The date the case is closed
- The date the case is dismissed
- The date a discharge is granted or denied
2. If at least one case was dismissed in the year prior, then you must look at how many. If one case was dismissed, then the automatic stay terminates after 30 days, unless it is extended by the court after a showing the case was filed in Good Faith.
If more than one case was dismissed in the year prior to filing, no automatic stay goes into effect until Debtor files a motion with the Court requesting the stay, and they are able to show the filing was in Good Faith.
I invite you to email me at Travis@RussellGR.com with any questions you may have regarding the automatic stay, or any other bankruptcy related matter. I would love to discuss what my office can do to help you achieve long term financial stability.
We often have potential clients come to our office, and after going through their circumstances we come to realize they transfer an automobile to a family member. At the time of the transfer there were no intentions of committing a future bankruptcy fraud, however nonetheless we have a situation that needs to be dealt with.
If a Debtor (the person filing for bankruptcy) gives an automobile, or any other piece of proper of value, away to a family member prior to filing, the court may deem this to be a fraudulent transfer.
However, fortunately for our clients there is a way out. There is well established case law (Nino v. Moyer) that takes a “No Harm, No Foul” approach. What this means that if we are able to undue the transaction prior to filing the bankruptcy, there is no fraudulent transfer. For information on how this is done, contact our office at (616) 920-0555 or use the following link: Contact Us
About 4-5 days after your bankruptcy petition as been filed, you (and the creditors you list in your bankruptcy papers) will receive a notification that a “meeting of creditors” has been set. The assigned bankruptcy trustee leads the hearing and, after swearing you in, will ask you questions about your assets, debts, monthly budget and other transactions that may have occurred in the past 1-5 years. Typical questions are:
- Did you sign the petition, schedules, and related documents before this case was filed?
- Did you have an opportunity to read and review those documents before you signed them?
- Did you list all of your assets, and are all the values correct to the best of your knowledge?
- Did you list everyone you owe money to?
- Have you paid any creditor $600 or more in the 90-days prior to filing?
- Have you paid back any family or friends back for any loans in the past year?
- Have you sold or transferred any property to any family members or friends in the past 2 years?
It is very important that you bring your DRIVERS LICENSE AND SOCIAL SECURITY CARD with you, and that you arrive about 10-15 minutes early to complete any questionnaire the trustee may have for you. In the large majority of Chapter 7 and Chapter 13 bankruptcies, this is the only hearing you will attend.
For more information about our services, feel free to call our Grand Rapids’ office at (616) 920-0555.
A Chapter 13 Bankruptcy (also known as Repayment Plan) can remove a second mortgage from your home. If the first mortgage is more than the value of your home, a Chapter 13 Repayment Plan will let you pay your second mortgage or home equity loans the same as your credit card debt. After 3 or 5 years, your mortgage will be gone. If your house is underwater and has a second mortgage a Chapter 13 Repayment Plan is worth looking into.
No.
Although when you file for Bankruptcy it is a “public record,” it is not published in the local paper. Unlike a foreclosure, which would be published in the Grand Rapids or other local newspaper, this does not happen in a Bankruptcy. For that reason, if you file a Chapter 7 or Chapter 13 Repayment Plan, your neighbors will not see it in the paper.
If you have any questions regarding Bankruptcy and the privacy around it, please do not hesitate to contact my law office at (616) 920-0555.
In a ruling that agrees with most other courts, the U.S. Court of Appeals for the Second Circuit held that a creditor who repossesses a car or truck must return it if the owner files chapter 13 before it is sold. If you car was seized, you may have your car returned through a chapter 7 or chapter 13.
Because state law determines the rights of an auto owner after repossession, owners in some parts of the country may not have the right to demand turnover. But in Michigan where I practice, the courts agree with Weber. So an owner can reclaim a repossessed car and pay for it – or sometimes pay its value, if less – through a chapter 13 plan.
Chapter 13 can be an expensive and cumbersome process. An attempt get back a repossessed car, without more, will rarely justify filing bankruptcy. But if an auto owner has other reasons to consider bankruptcy – if he is behind on a mortgage or has a substantial amount of unsecured debt – the advantage of saving the car may make chapter 13 appealing.