Maybe. This past week I sat through a session with a couple who left feeling offended at the truth of their situation. We went through their budget and they could not afford their life style. Just remember – the numbers don’t lie. If you can’t afford your house in the neighborhood of your dreams than [...]
Bankruptcy in Michigan
Category Archives: Uncategorized
3 BIG NO NO’S WHEN YOU FILE FOR BANKRUPTCY
When you file for BANKRUPTCY IN MICHIGAN there are 3 things that you never do: 1. Never lie. – tell the truth – fraud in an Bankruptcy proceeding is a 2 year felony and up to a $250,000 fine. 2. Don’t make any preference payments or transfers – you can’t prefer one creditor over another [...]
What is a “QUALIFIED WRITTEN REQUEST” under the Federal Servicer Act which allow me to get all of the documents relating to my home mortgage loan when I am trying to negotiate a LOAN MODIFICATION IN MICHIGAN?
Here is a sample letter. You will find the proper address on the back of your mortgage statement. This letter is written from a lawyer’s perspective and would require an authorization and release. If you send it yourself, you would not not need a separate authorization and release. You (and your co-borrower – typically your [...]
How can a property settlement agreement in a divorce affect your Bankruptcy in Michigan?
Although domestic support obligations and property settlements are non-dischargeable in Chapter 7, property settlement debts are dischargeable in Chapter 13. Settlement agreement language can help determine how a judgment or property settlement will be viewed by a bankruptcy court. Settlement agreements should include a provision contemplating potential bankruptcy by either party. Support provisions and integration [...]
Is the Till interest rate universally applicable to all Chapter 13 Bankruptcies in Michigan?
In Horny (E.D. Mich 2011), Judge Ludington ruled that not all contract interest rates can be crammed down to the Till rate. Ludington held that the Till rate of cramming or reducing interest in a secured obligation is not a universal rule. Ludington followed the Till holding – maintaining that an interest rate may be [...]
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. [...]