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Assets acquired before you file for Bankruptcy in Michigan do not have to be included in a Chapter 13 Plan.

In Mobley (Bank. E.D. Mich. 2011), the court held that a fully exempted pre-petition personal injury award cannot be included as part of the disposable monthly income (DMI) calculation. The Mobley court maintained that a Chapter 13 repayment plan is exclusively related to paying creditors out of future income or earnings. A Chapter 13 proceeding…

Uncertain or unliquidated personal injury awards do not have to be included as disposable monthly income (DMI) in a Chapter 13 bankruptcy proceeding in Michigan?

The Court in Connor (E.D. Mich. 2012) recently addressed the issue and concluded that prospective amounts do not have to be included in a DMI analysis in filing a bankruptcy in Michigan. Typically, disposable monthly income (DMI) includes all the know or certain income as of the date of confirmation of a Chapter 13 plan….

Can the Loan Modification Program be Saved?

Following the lead of several Bankruptcy Courts across the country, Local Chapter 13 Trustee Thomas W. McDonald Jr. has proposed a Mortgage Modification Mediation program that would function through a Chapter 13 proceeding. McDonald’s proposal addresses several of the major complaints about the voluntary Making Home Affordable Program (HAMP). The Obama Administration designed HAMP to…

The Mortgage Debt Relief Act Prevents You From Getting Taxed on Discharged Mortgage Debt

The Mortgage Debt Relief Act of 2007  – which was extended through 2012 – allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring and mortgage debt forgiven in connection with a foreclosure also qualifies for the relief. So, if you filed for bankruptcy in Michigan…

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