f you currently have a loan for a mobile home, there is a chance you are paying a high interest rate for for a loan where you owe significantly more than what the home is worth. If that is the case, then I want to meet with you.
Section 506 of the bankruptcy code allows an individual in a Chapter 13 Bankruptcy restructure personal property loans in situations where they had the loan for more than 910-days by dropping the loan amount down to the Fair Market Value of it. Further, regardless of how old the loan is, you can drop the interest rate down to 4.5%. Let’s look at a few scenarios.
So let’s say you have a trailer that you purchased 10 years ago for $50,000, at 20% interest, with a 30 year loan. Your payment would be $836 a month, for the next 20 years. But let’s assume that due to depreciation, that trailer is only worth $15,000 in it’s current condition. I could restructure that loan for you, for $280 a month, and have it paid off in 5 years.
Please give me a call today if you have a mobile home. I would like to sit down and see how much I can drop your payment for you.
The answer really depends on which Chapter of Bankruptcy you previously filed (Chapter 7 and Chapter 13), and which Chapter you wish to file. Additionally, these restrictions only apply if you received a discharge in your previous filing.
Ch 13 -> Ch 13: You must wait at least 2 years after the filing of your initial case before you may refile and receive another discharge. Fortunately, more than likely you were in the first case for at least the 3 year minimum, so theoretically you could refile the day after you receive your discharge.
Ch 7 -> Ch 13: You must wait at least 4 years after the filing of your initial case before you may refile and receive another discharge.
Ch 13 -> Ch 7: You must wait at least 6 years after the filing of your initial case before you may refile and receive another discharge. There is an exception to this 6 year waiting period in instances where your initial Ch 13 was a 100% plan or where it was at least a 70% plan and proposed in good faith and your best efforts.
Ch 7 -> Ch 7: You must wait at least 8 years after the filing of your initial case before you may refile and receive another discharge.
Some people think that if you file for bankruptcy that you will lose your home. This is not the case in 99.9% of filings.
If you have less than $11,850 in equity in your home, you can keep your home, and your other assets will not be affected at all. If you have between $11,850 – $23,700 then you can keep your home, but your D5 Wildcard exemptions may be limited.
If you have between $23,700 – $37,775 in equity, then you will want to use your Michigan Exemptions. If you have more than $37,775 then you will want to contact my office. There are still a few more exceptions that you can take advantage of. Give me a call at (616) 920-0555 or email me at Travis@RussellGR.com
As discussed in a prior article, think of an exemption as a credit you can use to buy back your property. If you have a loan or lien on a piece of property, then you only need to use your credits to buy back you ‘equity’ in the property (Equity = Value – Loan Amount). Most exemptions can only be used to protect a certain category of property. A “Wildcard” exemption, however, can protect ANY asset. So the question becomes, how much does one receive of Wildcard exemption?
At a minimum, you will receive $1,250.00 in Wildcard. Additionally, you will receive whatever federal homestead exemption you have left over, capped at $11,850.00. This means, if you have a home with little to no equity in it, you can potentially receive $13,100.00 in D5 Wildcard exemptions to apply towards protecting your assets.
If you have any further questions on D5 Wildcard exemptions, or any other bankruptcy matter, please do not hesitate to contact me at (616) 920-0555 or Travis@RussellGR.com
Qualified state tuition programs, also known as “529 plans,” are growing in popularity as a way to save for your child’s future education. Given the rising costs of college, having this plan waiting for your children can be one of the best gifts that you can give them.
What if you have a plan established at the time of filing for bankruptcy?
What occurs to these funds will hinge on when the funds were deposited into the account. So let’s take a look at the three time periods that matter.
Funds deposited less that 1 year prior to filing for bankruptcy: These funds are afforded no special protection. You will only have your D5 “wildcard” exemptions to protect those funds.
Funds deposited between 1 & 2 years prior to filing for bankruptcy: Under 11 USC 541(b), the first $5,000.00 deposited 12-24 months prior to bankruptcy is protected. The remaining would need to be protected with whatever D5 Wildcard exemptions you have left over.
Funds deposited more than 2 years prior to filing for bankruptcy: Under 11 USC 541(b), anything deposited into a 529 plan more than 2 years prior to filing for bankruptcy is fully protected.
Additionally, some states have special exemptions, with more loose rules, that you can use to protect these 529 plans. Unfortunately, Michigan in behind the curve in that respect. If you have any further questions regarding 529 plans or other bankruptcy questions, please do not hesitate to contact me at (616) 920-0555 or Travis@RussellGR.com
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.