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What Happens to Utility Expenses that You Accrue After You File a Chapter 7 or a Chapter 13 Bankruptcy?

§366 of the Bankruptcy Code governs matters relating to Utility companies, like Consumers, Bay City Power & Light and DTE. Typically, the utility company will close out the Pre-Petition account and all charges that accrued prior to filing your bankruptcy will be included in that account. §366(a) provides the general rule that a utility may…

Chapter 13 Trustee Best Practice For Mortgage Arrearage Claims for Chapter 13 Bankruptcy in Michigan

Mortgage Servicers frequently inflate their pre petition arrearages, including interst and penalty charges, in Chapter 13 proceedings. The Mortgage Committee of the National Association of Chapter Thirteen Trustees (NACTT) recently released a Best Practices guideline for trustees and mortgage servicers. as follows: The NACTT Mortgage Committee is comprised of Chapter 13 trustees, mortgage servicers, mortgagees…

5th Circuit EXCLUDES Social Security Benefits from Income Calculation

 In re Ragos, the Fifth Circuit Court of Appeals held that a Chapter 13 debtor’s Social Security income is not included in the debtor’s projected disposable income. Since Congress excluded Social Security income from “current monthly income” in Code § 101(10A) and “disposable income” in Code § 1325(b)(2), the court reasoned, it made little sense to circumvent that prohibition by…