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

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 option is only viable when “an ongoing stream of regularly anticipated income” is available. In its decision, Mobley concluded that “disposable monthly income” is a practical consideration based on income and earnings – not the liquidation of assets. Mobley relied on the Lanning standard in concluding that pre-petition assets do not have to be committed to the DMI that will be used to fund a Chapter 13 plan.

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Saginaw (Saginaw, Frankenmuth, Chesaning, St. Charles, Hemlock, Shields, Freeland, Carrollton ); Bay (Bay City, Essexville, Auburn, Kawkawlin, Linwood, Pinconning, Standish); Midland (Midland, Sanford, Edenville, Wixom Lake); Gratiot (Ithaca, Alma, St. Louis, Breckenridge); . Isabella (Mount Pleasant, Shepherd, Coleman); Gladwin (Gladwin, Beaverton, Rhodes); .Clare (Clare, Farwell, Harrison); Roscommon (Roscommon, Prudenville, Houghton Lake, Higgins Lake, St. Helen); Crawford (Grayling); Otsego (Gaylord); Cheboygan (Cheybogan); Presque Isle (Rogers City); Montmorency (Atlanta); Alpena (Alpena); Oscoda (Mio); Ogemaw (West Branch, Skidway Lake, Prescott); Alcona (Alcona, Harrisville); Iosco (Oscoda, Au Sable, East Tawas, Tawas, Whittemore, Alabaster); Arenac (Au Gres, Standish); Tuscola (Caro, Reese, Richville, Mayville, Millington, Akron, Fairgrove, Cass City); Huron (Bad Axe, Sebawing, Bay Port, Pigeon, Caseville, Pinnebog, Port Austin, Harbor Beach)