Michigan Bankruptcy and 1040 Income Taxes. Yes, provided the 5 following rules are met: 1. The taxes at issued must be 1040 Income Taxes. Taxes such as payroll taxes, trust fund taxes, sales tax or fraud taxes are treated differently. 2. The 3 Year Rule. The income tax return for which the taxes are owed [...]
Bankruptcy in Michigan
Category Archives: Chapter 7
Bankruptcy in Michigan-Reaffirmation Agreement Based On Mutual Mistake Voided
Bankruptcy in Michigan -Reaffirmation Agreement. After filing a Ch. 7 bankruptcy, a reaffirmation agreement was signed for two separate bank loan debts that would have both been dischargeable. The Debtors Jackie and Peggy Bailey abruptly stopped paying Salyersville National Bank, which tried unsuccessfully to repossess a truck pledged as security. SNB filed a “wholly unsecured [...]
Bankruptcy in Michigan – 6th Circuit Says Perfection Follows Secured Lien, Even After Assignment
Michigan Bankruptcy Secured Lien. The Bankruptcy Court for the Northern District of OH said Wells Fargo Bank lacked standing to seek relief from the automatic stay in the filed Ch. 7 of Megan Rice. WFB appealed the decision to the 6th Circuit Appellate Panel. Debtor Rice had previously financed a Trailblazer. In turn, the security [...]
Look if Debtors are “Needy” – to Keep Tax Refunds, Give to 401K
An above median income family didn’t include their 401K contributions and tax refunds into their disposable income calculation. The UST filed a Motion to Dismiss James and Heidi Kehl’s Ch. 7 filing in the Eastern District of MI, Southern Division. The UST argued at an evidentiary hearing the ability of the Debtors to pay on [...]
Major Fees And Damages After Failed Involuntary Chapter 7
The dismissal of an involuntary Ch. 7 resulted in a decision against petitioning creditor Kevin Adell, in favor of alleged debtor JRH LLC. The Honigman firm successfully defended JRH from the failed involuntary petition, obtaining a judgment against Adell for compensatory and punitive damages, plus being granted fees and costs under Sec. 303(i) of the [...]
Are most debt consolidation plans a rip off?
Most debt consolidation programs in Michigan are a rip off.
Michigan Median Income Levels Change on November 1, 2010
The ”New” Bankruptcy law from 2005 establishes a median income to determine whether you can file a Chapter 7 or whether you have to consider filing a Chapter 13. The median income is calculated on a State by State basis and is further determined by household size–just think of “heads on the beds.” As you may [...]