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.
Pursuant to the bankruptcy code, the debtor must commence making payments pursuant to their plan within 30 days after their petition is filed. Payments to the trustee must be retained by the trustee until the plan is confirmed or denied. If the plan is confirmed, the payments are distributed in accordance with the plan. If confirmation is denied, the trustee, after deducting allowed administrative expenses, must return the remaining funds to the debtor.
In consumer chapter 7 bankruptcies, although the trustee pretty clearly has a right to take possession of totally nonexempt property prior to the 341 meeting of creditors, this rarely occurs. These non-exempt issues can be resolved in one of three fashions.: (1) Turn the property over to the trustee; (2) Buy the non-exempt property back from the trustee; (3) file a Chapter 13, perform a liquidation analysis and account for that L.A. in your plan.
In the second option, the client would only need to buy back the non-exempt portion. For example, the debtor’s automobile may be worth $1,000 more than the amount which can be exempted. In these circumstances, terms can be arranged for a payment to the trustee in lieu of turning over the car. As long as the case will not be delayed, the trustee should be willing to accept payment in installments.
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.
When you file for bankruptcy you are given exemptions that you may use to protect your property. Some exemptions are limited, such as those used to protect your automobile and household goods, and some are unlimited, such as the exemptions you receive to protect any qualified retirement.
401(k)’s, 403(b)’s, pensions and the vast majority of IRA’s are considered to be qualified retirement plans.
For this reason, it does not make sense to take a loan from your retirement plan if you believe a bankruptcy filing is inevitable. Instead, give my office a call so that we may assist you with planning your financial recovery.
In this attorney’s opinion, driver’s responsibility fees only compounds our economic problems and do not “encourage” drivers to drive more responsibly.
Fortunately, Michigan driver’s responsibility fees are generally dischargeable in Chapter 7 bankruptcy, as well as Chapter 13 bankruptcy.
Criminal penalties are not dischargeable in bankruptcy. However, Michigan driver’s responsibility fees are not “criminal penalties.” They are administrative fines levied by the Secretary of State’s office, not as a sentencing judgment or criminal statutory penalty by a criminal court conviction. Therefore, they should not fall under the “criminal penalty” non-dischargeability exception to the list of debts dischargeable under the US Bankruptcy Code as traffic tickets, parking tickets, and other fines may.
Thus, the filing of a Chapter 7 bankruptcy should discharge a driver’s responsibility fee arrearage, after which the Secretary of State’s office should return a driver’s license. However, with that said, the State of Michigan has taken various stances on such issues at various times, including the position that such fees are non-dischargeable “criminal penalties.”
Looking to build or rebuild your credit? You should consider a Secured-CD Loan.
Here is how it works: Bank gives you a loan for $1,000.00. That $1,000.00 immediately goes into a CD. That loan is then secured by the CD. You pay $85.00 a month of 12 months ($1,020 total). At the end of the 12 months, you will receive the CD (now worth approx $1,005).
Such a program will cost you approximately
$15 over the course of 12 months, but you will receive 2 HUGE benefits:
1) All payments will be reported to the three credit bureaus, improving your credit profile.
2) You will be forced to save money!