BAY CITY BANKRUPTCY CHAPTER 13 PAYMENT PLAN-Terry Bankert 810-235-1970

April 6, 2011

WHAT IS THE BAY CITY BANKRUPTCY TRUSTEE DUTY.

a. When you the debtor owe back child support they share information about your Bay City Bankruptcy with child support enforcement agencies like the friend of the Court.

b. The Bay City Bankruptcy truste evaluates your offered plan to make it follow the law.

c. The Bay City Bankruptcy trustee will watch your monthly income and expense reports that are required by Federal law.

d.The Bay City Bankruptcy trustee demands that you file your federal tax returns for the four years prior to your filing and every year during your plan.

e.The Bay City Bankruptcy trustee actively participates in helping you modify your plan when necessary.

IS YOUR CASE IN THE EASTERN DISTRICT OF MICHIGAN BANKRUPTCY COURT? BANKRUPTCY FLINT / BAY CITY ,ATTORNEY POSTING BY Flint / Bay City Bankruptcy Attorney Terry R. Bankert 810-235-1970. http://www.attorneybankert.com     Written in SEO format.

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BANKRUPTCY TRUSTEE, WHO ARE THEY AND WHY SHOULD YOU CARE?

April 1, 2011

BANKRUPTCY TRUSTEES. WHO ARE THEY AND WHY SHOULD YOU CARE?

When you file for your Chapter 7 or Chapter 13 Bankruptcy every thing in your life that you own will be under the control of this person. Is that a good enough reason? You cannot even give anything to you mother without the potential that the trustee will undo the deal and dismiss your case throwing you back into the harassment of your creditors.

The job of the Bankruptcy trustee is:

1. In bankruptcy you get to keep property that for very specific reason you can keep. This property is called exempt. The job of the Bankruptcy Trustee in Chapter 7 is to seize you nonexempt property and sell it keeping part of the proceeds for the trustee and giving the rest to the people your had promised to pay (creditors).

2. Filing for bankruptcy creates a strict liability for the paperwork you file. The Bankruptcy trustee’s job is to make sure this paperwork is done right. That its accurate and complete.

3.The trustees calls a meeting to ask you questions looking for lies and error on your part. At this meeting all the people you had promised to pay are invited to ask you questions. Do you really want to go to this meeting alone?

4.The trustee then administers your case for the court.

Call me if You have questions  810-235-1970

TOPIC BANKRUPTCY:EASTERN DISTRICT OF MICHIGAN BANKRUPTCY COURT. BANKRUPTCY FLINT ,ATTORNEY POSTING BY Flint Bankruptcy Lawyer Terry R. Bankert 810-235-1970.[Comments of Flint Bankruptcy lawyer Terry R. Bankert ,810-235-1970 ,in bracket or CAP headlines. If you have bankruptcy questions call today-810-235-1970 this article presented in a SEO format see:   http://nojokebeingbroke.com


FLINT BANKRUPTCY AND DIVORCE SUPPORT

March 30, 2011

IN YOUR FLINT DIVORCE most orders and proceeding will continue. Contact Flint divorce/bankruptcy attorney Terry Bankert if you have questions. The automatic stay that stops collection actions against you , and the phone calls, when you file for bankruptcy will nnot stop in the following .

In what are called domestic proceedings the following are continued.

A. The setting and collection of current child support and alimony.

B. The collection of back child support and alimony from property that is not in the bankruptcy estate.

C.The determination of child custody and visitation.

D.A lawsuit to establish paternity.

E. An action to modify child support and alimony.

F.Proceedings to protect a spouse or a child from domestic violence.

G.Witholding of income to collect child support.

H.reporting of overdue support to credit bureaus.

I.The interception of tax refunds to pay back child support.

J. Witholding, suspension, or restriction of drivers license and professional license as leverage to collect child support.

If you have questions see  Http://www.nojokebeingbroke.com

or call 235-1970
TOPIC BANKRUPTCY:EASTERN DISTRICT OF MICHIGAN BANKRUPTCY COURT. BANKRUPTCY FLINT ,ATTORNEY POSTING BY Flint Bankruptcy Lawyer Terry R. Bankert 810-235-1970.[Comments of Flint Bankruptcy lawyer Terry R. Bankert ,810-235-1970 ,in bracket or CAP headlines. If you have bankruptcy questions call today-810-235-1970 this article presented in a SEO format see, http://www.nojoketobebroke.com ]


CAN YOU KEEP INSURANCE PROCEEDS IN BANKRUPTCY?

March 28, 2011

CAN YOU KEEP PROCEEDS FROM INSURANCE IF YOU ARE IN BANKRUPTCY?

TOPIC BANKRUPTCY:EASTERN DISTRICT OF MICHIGAN BANKRUPTCY COURT. BANKRUPTCY FLINT ,ATTORNEY POSTING BY Flint Bankruptcy Lawyer Terry R. Bankert 810-235-1970.[Comments of Flint Bankruptcy lawyer Terry R. Bankert ,810-235-1970 ,in bracket or CAP headlines. If you have bankruptcy questions call today-810-235-1970 this article presented in a SEO format see, www.nojoketobebroke.com  ]

source___________________________________/
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION – DETROIT
In re: Pauline Marie Darr, Case No. 09-63229
Chapter 7,Debtor. Hon. Walter Shapero, Signed on March 24, 2011
_______ ___________________________/

OPINION ON DEBTOR’S MOTION TO RETAIN INSURANCE PROCEEDS
The matter before the Court is Debtor’s Motion to Retain Insurance Proceeds (Docket
No. 86). For the reasons set forth in this opinion, Debtor’s Motion is denied.

BACKGROUND-BANKRUPTCY FILED 07-27-09 CHAPTER 13
Pauline Darr (“Debtor”) filed her Chapter 13 petition on July 27, 2009. She filed her
Chapter 13 Plan on August 11, 2009 and the Order Confirming Plan was entered on December
22, 2009 (Docket No. 47).

DEBTOR ASKED TO KEEP MOLD DAMAGE CLAIM TO HER HOME
On July 19, 2010, Debtor filed a Motion to Retain Insurance
Proceeds to Repair Residence (Docket No. 60), seeking permission to retain the proceeds of an insurance claim covering her residence, totaling $2,750.38, which arose out of remediation of
 old and water damage.

CHECK MADE OUT TO DEBTOR, DEBTORS SIGNIFICANT OTHER AND MORTGAGEE

The proceeds emanated from a check issued by the entity adjusting the
claim, which was delivered to the Debtor and was made payable to Debtor, her significant other, and the mortgagee of her manufactured home residence, Green Tree Serving, LLC (“Green
Tree”).

MORTGAGEE JUST WANTED TO KN OW THE MONEY WOULD BE SPENT WISELY

Green Tree responded to Debtor’s Motion, seeking a method by which they could be assured that the repairs would be timely made and that the disbursement of funds could be monitored.
ALL PARTIES AGREE TO A PROCESS

A hearing was set and eventually the parties stipulated to the entry of an Order Regarding Insurance Check (Docket No. 68), dated August 12, 2010, which essentially provided for the following:
(1) The check would be endorsed by the payees and the check’s proceeds would be
deposited in Debtor’s attorney’s trust account, with the funds to be disbursed therefrom as further provided in the order.
(2) Debtor would produce to her attorney and Green Tree certain documentation regarding the claim, including the adjustor’s itemized statement of the damages and a contractor’s estimate to remediate the damage. Incident to receipt of such, the
attorney would issue a check to the Debtor for 50% of the proceeds.
(3) Debtor was to have the repairs completed within thirty (30) calendar days of receipt of those funds, following which she was to produce proofs and certification of completion. If Green Tree found such to be satisfactory, the remaining 50% of the proceeds would be released to the Debtor.
DEBTOR HAD LEFT THE HOME

Previous to the entry of that Order, Debtor had (a) vacated the residence, and (b) obtained a repair estimate of $4,506.00 from a contractor; and ©) had received the adjustor’s loss report detailing how the $2,750.38 amount of the check was arrived at. That stated calculation was:
Gross Repair Estimate $ 4,213.22
Less: Policy Deductible _$ 500.00
$ 3,713.22
Less: Recoverable Depreciation _$ 850.48
$ 2,862.74
Less: Non-recoverable Depreciation _$ 112.36
AMOUNT OF CHECK $ 2,750.38
(The subsequent entry of the August 12, 2010 Order also implies that Debtor did not then take issue with the indicated insurance settlement figure)

DEBTOR TO GET $3,600.86 FROM THE CLAIM
What that meant was that (1) the money initially available from the insurance company for remediation was the check proceeds of $2,750.38 and (2) Debtor would also receive the recoverable depreciation of $850.48 on completion. Thus, the total to be ultimately received by
Debtor from the insurer in respect to the claim was to be $3,600.86. Debtor would be required to personally bear whatever, if anything, it cost in addition to that figure to remediate the damage.
Debtor having supplied the required documentation,

DEBTROS ATTORNEY GAVE HIM $1,300

Debtor’s attorney issued a check to Debtor for roughly half of the proceeds, i.e.: about $1,300. Sometime in October 2010, Debtor turned that amount over to the contractor from whom she received the indicated estimate, with the idea that the contractor would then commence the repairs.

DEBTOR TOLD THE CONTRACTOR TO NOT START WORK!.WHODATHUNK

However, the Debtor, for reason, thereafter told the contractor not to start the repair work.
CHAPTER 13 CONVERTED TO A CHAPTER 7

In the meantime, in November 2010, the Debtor’s bankruptcy case was converted to a Chapter 7 case and Green Tree thereafter obtained a lift of the stay in reference to its mortgage on the manufactured home residence.

CONTRACTOR RETURNS MONEY TO DEBTOR

Sometime in December 2010, the contractor returned to Debtor the money she had paid him, less some $300.00 he retained for his time and efforts to date.

DEBTOR GIVES MONEY TO ATTORNEY TRUST ACCOUNT

Debtor then turned that money over to her attorney who deposited it in his trust account, where it now sits together with the remainder of the $2,750.38 the attorney had not previously disbursed. Presumably the amount in that trust account is $2,750.38 less the $300 or so which the contractor did not return to the Debtor.
GREENTREE GETS THE HOUSE BACK
So, the situation is that (A) Green Tree has obtained a lift of the stay with reference to the residence and presumably will exercise its rights under its mortgage and for some time Debtor has not lived there and apparently does not intend to do so;
NO REPAIRS WERE MADE TO THE HOUSE

(B) no repairs were ever made to the residence incident to the loss covered by the insurance check;
THE INSURANCE MONEY IS IN THE ATTORNEYS TRUST ACCOUNT
 (C ) the check/loss proceeds in the indicated amount are being held in Debtor’s attorney’s trust account, subject to this Court’s decision; and
COURT ORDER DID NOT ADDRESS ESCROWED ACCOUNT AMOUNT
(D) the August 17, 2010 Order did not state what would happen to the escrowed funds if the contemplated repairs were in fact not made.
 

DEBTOR ASKED THE COURT TO ALLOW DEBTOR TO KEEP THE MONEY

Debtor seeks to have some or all of those proceeds paid to her, as opposed to having them released to Green Tree, which seeks turnover to it of all of the funds.

DISCUSSION
In the Court’s view, given that the August 17, 2010 Order was not fully effectuated, the proper disposition of the funds must be determined by looking at both the Mortgage and the insurance policy involved.
INSURANCE REQUIRED AND ASSIGNED TO MORTGAGEE
The mortgage documents with regard to Property Insurance clearly
(a) require that the Debtor carry prescribed insurance coverage; and (b) assign to the mortgagee (in this case Green Tree) the proceeds of any insurance coverage on the manufactured home, the same to be applied to repair or restoration, or in lieu thereof, to the remaining unpaid balance due
under the mortgage.

GREENTREE WAS THE INSURED

The insurance policy involved in this case, which covers the loss involved,
among other things, names Green Tree as an insured.

DEBTOR SAYS MONEY CANNOT FIX PROPERTY SO DEBTOR SHOULD KEEP IT

Debtor argues that she should be entitled to all or part of the funds at issue because the
funds are insufficient to fully restore the premises and fully pay for the loss; that she did not have the funds to pay the difference; and that she continued to pay lot rent until the stay was lifted, and that she needs the fund to get back on her feet.

LOOK TO THE POLICY

While all of that might be so, such cannot alter the meaning and purport of the referred to provisions of the mortgage and insurance policy.

It was clear in the first place, whether Debtor fully appreciated it or not, that she was going to have to bear some of the cost herself (unless the contractor agreed to accept the check proceeds as full payment for the entire remediation). Furthermore, as indicated, the stipulated Order
pertaining to the disposition of the funds is silent on what was to happen if the provisions of the order were not carried out and the repairs were never made. That necessarily left the disposition
of the matter to the cited provisions of the relevant documents.

GREENTREE GETS THE PROCEEDS
Accordingly, Green Tree is entitled to all of the funds involved. Green Tree should prepare and present an order which requires the Debtor and Debtor’s attorney to forthwith turn over to it all of such funds. Debtor and Debtor’s attorney do not have any responsibility to turn
over the amounts deducted by the contractor before he returned the remaining balance to the Debtor and she thence turned it over to her attorney, because the Court has concluded the
circumstances do not warrant requiring them to do so.
—END

If you have bankruptcy questions please call Terry R Bankert at 810-235-1970 , email terry@attorneybankert.com

, web page http://www.attorneybankert.com


WHEN IN BANKRUPTCY YOU MUST GET A CREDIT COUNSELING CERTIFICATE BEFORE YOU FILE

March 24, 2011

DID YOU KNOW IF YOU ARE IN BANKRUPTCY you must file a motion for approval of the certification, serve it on all parties, and file a certificate of service.

BANKRUPTCY posting by Bankruptcy lawyer Terry R. Bankert.UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION (DETROIT),In re: Chapter 13,Carlos B. Oxholm, Case No. 11-46348 Debtor. March 15, 2011 Hon. Phillip J. Shefferly

ORDER DENYING DEBTOR’S EX PARTE MOTION FOR
EXTENSION OF TIME TO FILE CREDIT COUNSELING CERTIFICATE

BANKRUPTCY FLINT ,ATTORNEY POSTING BY Flint Bankruptcy Lawyer Terry R. Bankert 810-235-1970.[Comments of Flint Bankruptcy lawyer Terry R.Bankert ,810-235-1970 ,in bracket or CAP headlines. If you have bankruptcy questions call today-trb.810-235-1970]

DEBTOR FILED 03/01/11

On March 9, 2011, the Debtor filed this Chapter 13 case.

MOTION FILED 03/1/2011

On March 11, 2011, the Debtor filed a motion (docket entry no. 8) seeking an extension of time to file a certificate of budget and credit counseling.

DEBTOR SAYS NO CREDIT COUNSELING BEFORE FILING.

The motion does not cite any Bankruptcy Code section or rule, but explains that the Debtor did not obtain budget and credit counseling prior to filing the bankruptcy petition
because of exigent circumstances.

DEBTOR WANTS EXTENSION

The Debtor’s motion requests that the Court grant the Debtor
an extension of time to file the certificate of budget and credit counseling on an ex parte basis.

BANKRUPTCY CODE SAYS YOU CAN ASK

Section 109(h)(3)(A) of the Bankruptcy Code permits a debtor to

[1]obtain a waiver of the requirement of obtaining budget and credit counseling pre-petition,

[2]provided that the debtor files a certification that complies with § 109(h)(3)(A).

[3]The Bankruptcy Court for the Eastern District of Michigan has a specific local bankruptcy rule that sets forth the procedure for filing a motion under § 109(h)(3)(A).

CREDIT COUNSELING CERTIFICATION

Local Bankruptcy Rule 1007-6 is entitled “Credit Counseling
Compliance.” Local Bankruptcy Rule 1007-6(a) provides that

[]a debtor filing a certification under § 109(h)(3)(A)

[]must file a motion for approval of the certification, serve it on all parties, and file a certificate of service. Further,

[]the local rule provides that parties in interest have
14 days within which to object to the motion.

[]If no timely response is filed, the certification shall be deemed satisfactory under § 109(h)(3)(A)(iii) without a hearing or further order.

[]The 11-46348-pjs Doc 12 Filed 03/15/11 Entered 03/15/11 14:46:56 motion must be accompanied by a notice that the deadline to file responses is 14 days after
service.

DEBTOR ASKED FOR EX PARTE, NOT ALLOWED IN RULES

The Debtor’s motion in this case seeks relief under § 109(h)(3)(A) of the Bankruptcy Code, but does not comply with L.B.R. 1007-6(a).

RULES SAYS JUDGES CANNOT LOOK EX PARTE

That local rule does not permit the Debtor’s
motion to be considered on an ex parte basis. Accordingly,

DEBTOR REQUES DENIED BUT DOOR LEFT OPEN TO DO IT RIGHT

IT IS HEREBY ORDERED that the Debtor’s motion (docket entry no. 8) for extension of time to file certificate of budget and credit counseling is denied without prejudice to the Debtor’s right to file and serve a motion that complies with L.B.R. 1007-6(a).
–END

If you have bankruptcy question please contact Flint Bankruptcy Attorney Terry r. Bankert P.C. 810-235-1970, http://www.attorneybankert.com

This law firm acts as a debt relief agency by helping you file for bankruptcy.


Its No Joke Being Broke.com contact a FLINT BANKRUPTCY ATTORNEY.

March 13, 2011

Bankruptcy is there to help you get a fresh start in your life or time to get your economic house in order. For a Flint Bankruptcy Attorney Call 235-1970

In order to file a bankruptcy, a debtor must file a petition for relief with the United States Bankruptcy Court for the district in which he or she resides.
Most common bankruptcy types—Chapter 7 (individual liquidation), Chapter 13 (individual reorganization) and Chapter 11 (corporate reorganization or high-income individual reorganization).
What are the differences?

In a Chapter 7, a Chapter 7 Trustee is appointed to oversee the debtor’s case. This happens automatically from the panel of Chapter 7 Trustees maintained by the Bankruptcy Court. All of the debtor’s non-exempt assets are “pooled” and turned over to the Chapter 7 Trustee to be liquidated and distributed to creditors. Often, a Chapter 7 debtor has no assets to be liquidated, making the case a “no asset” case with no recovery by creditors. In a Chapter 7 case, the Chapter 7 Trustee is responsible for objecting to claims, filing adversary proceedings to challenge the status of security interests, recover “avoidable” transfers, and paying creditors.

In a Chapter 13, a Chapter 13 Trustee is appointed from the panel of trustees to oversee the debtor’s case. The debtor proposes a plan to repay his or her creditors a certain percentage of their debts over a period of time (usually 5 years). The debtor must devote his or her “disposable income” to the repayment plan. In a Chapter 13, both the Chapter 13 Trustee and the debtor can object to claims filed by creditors.

In a Chapter 11 case, there is no trustee. Instead, the debtor remains in possession of its business or assets and is called the “debtor-in-possession”. Most often used for businesses, high-income individuals can also use this process to reorganize their debts and pay creditors. A chapter 11 debtor also proposes a plan for repayment of creditors, and creditors vote on the plan to determine whether it will be confirmed (i.e., accepted) by the Bankruptcy Court. A Chapter 11 case is a powerful tool that permits a Chapter 11 debtor to, among other things, assume or reject leases and contracts, object to claims and recover avoidable transfers made before the case was filed.
Also Chapter 12 (family farmer) and Chapter 9 (municipality) cases—these are much less common.
Once the bankruptcy case is filed, the debtor must file its schedules of assets and liabilities and its statement of financial affairs, which lists various transfers made by the debtor within certain periods of time as well as other financial information
The schedules permit the Trustee and creditors to review the debtor’s assets and the debtor’s idea of what claims will be asserted by creditors
The statement of financial affairs allows the Trustee and creditors to determine if the debtor transferred any assets to insiders within 1 year of the bankruptcy, paid any creditors within the 90 days before the bankruptcy, and gives a general picture of the debtor’s financial situation, including the last several years of income.


BANKRUPTCY, WHAT THE PETITIONER NEEDS TO KNOW

May 18, 2010

 

 I. Introduction

……………………………………………………………………………………..

II. Who May File?

………………………………………………………………………………..

III. Should I File a Claim?

 ………………………………………………………………………

IV. I Received a Bankruptcy Notice, Does This Mean I am Stayed?

……………

V. Can My Clients File on This Debt?

…………………………………………………….

VI. Can I Object to the Discharge of This Obligation? The Axis of Evil BC523(a)(2)(4) & (6)

…………………………………………………………………

VII. What Is a Domestic Support Obligation?

…………………………………………….

VIII. Miscellaneous Issues

…………………………………………………………………………

I. Introduction

 A. Thank you for reviewing this material. The rules requre that I meet with you at this initial consultation.

The topics discussed in this presentation were selected because they are the ones clients ask frequently call and inquire about.

 B. I have also included brief comments on provisions of the new Bankruptcy Law (BAPCPA). questions because it is a new law.

 II. Who May File?

A. You can probably file. There are a few exceptions.

CHAPTER 7- A person who has been a resident of the district for the greater part of 180 days.

CHAPTER 13 -An individual with a regular income with unsecured debnt of less that $336,900 and secured debt of less that $1,010,650.00 and has been a resident of the district for the greater part of 180 days.

B. Have you received a Chapter 7 Bankruptcy Discharge within the previous eight years they cannot file Chapter 7 and receive a discharge (BC727(a)(8)).

A Chapter 13 filing is available if four years have expired since the Chapter 7 discharge, but that may not be  a good choice for  you. Often the best course of action is to wait until you can file a Chapter 7 bankruptcy.

C. You may be unable to pass the Means Test of BC 707(b). Http://www.uscourts.gov/rules/BK_Forms_08_Offical/B_022A_1208.pdf

This test is required of every debtor who ha primary consumer debts and wants to file under Chapter 7. 1.

Passing the means test is a completely new requirement implemented by BAPCPA. If your debts are mostly business related you don’t have to pass the Means Test. If your debts are primarily consumer debts you must pass.

A. IF THE DEBTOR ANNUALIZED INCOME FALLS BELOW THE ANNUAL INCOME MEDIAN THERE IS NO PRESUMPTION OF ABUSE AND THE DEBTOR WILL BE ABLE TO CONTINUE WITH A CHAPTER 7 CASE.

If income is above the annual median income further calculations must be performed to determine whether the debtor has passed the means test and qualifies for bankruptcy under Chapter 7.

Software will do this application. If after expenses the net income is less that $109.58 per month then the case is not presumptively abusive under 11 USC 707 (b)(2)(A)(iv).

It is presumptively abusive is there is a net $182.50.Special circumstances must be shown. Expenses follow local , state and national standards. See http://www.irs.gov/irm/part5/irm_05-015-001.html

 B. IF YOUR ANNUALIZED INCOME IS GREATER THAN THE ANNUALIZED ANNUAL MEDIAN INCOME YOUR EXPENSES ARE THEN CALCUALTED TO SHOW YOUR INCOME INSUFFICIENT TO PROVIDE A MEANINGFUL REPAYMENT PLAN UNDER CHAPTER 13 2. The test is based on IRS data.

The goal is to ensure that debtors are in good faith and do not have sufficient resources to pay any significant amount to their creditors. The paperwork required to complete the means test is one of the reasons that the legal fees for a relatively simple bankruptcy have risen dramatically.

3. If you make $50,000 – 60,000 a year you might have a problem. You can still file a Chapter 13 unless you have too high a level of debt. BC 109(e) ($1,000,650 for secured debt, $336,900 for unsecured).

4. Even if you pass the Means Test you must still be in good faith. The U.S. Trustee will still analyze the budget to verify that the debtor has no disposable income available for creditors (BC 707(b)(1)).

5. You must now receive debtor education before they can file. Under the Bankruptcy code the family income dictates the form of relief (either Chapert 13 or Chapter &) available to you.

Annual income, calculated based upon the income for the 6 month prior to the filing is the first look determiner on the availabile bankruptcy remedies. The Court looks to the IRS for income data by state. 11 USC 707 (b)2 and 11 USC 1322 (d)(1). The Current median income for Michigan is,

One Earner- $43,611

Family 2 – $52,620

Family 3 $61,737

Family 4 $74,824

 The first step of a bankruptcy analysis then starts with this median income. As the unemployment rate increases , and income decreases, the eligibility for bankruptcy increases.

NON FILING SPOUSE

 The non filing spouse income is incorporated into the means test.

CHAPTER 7 ATRUSTEE COLLECTS AND SELLS DEBTORS NON-EXEMPT PROPERTY AND DISTRIBUTES THE PROCEEDS TO CREDITORS.

 CHAPTER 7 PROCESS Filing 341 hearing Sometimes claims Adversary proceedings Discharge Dismissal-Conversion Trustee duties

DOMESTIC SUPPORT HAD PRIORITY IN 7 AND 13 CHAPTER 13 INDIVIDUAL REORGANIZATIONS

 The individual agrees to a repayment plan and uses future earnings to pay creditors. The debt amount must be less that $250,000 unsecured or $750,00 in secured.

WHEN IS A CHAPTER 13 ADVISABLE Recent Chapter 7 Default on secured debt -mortgage -car loan -prevent forfetute of taxes on real property -needs to strip away junior mortgage -goal is to keep real property with unsecured mortgage cross collateralized can be crammed down in a payment plan -keep unexempt property -compell a short sale of unsecured collateral -manage non dischargeable student loan -payment plan on on non dischargeable tax debt -did not pass the means test

CHAPTER 13 PROCESS Filing 341 Hearing -documents to support all entries on the schedules -certificates of title, vehicles, boats, mobile homes, – currents statement from each secured creditor -origional bankbooks, check registers credit card statements, -copies of leases, mortages, deeds, and land contracts -copies of leases, mortgages, deeds, and land contracts -current property tax statements -assets appraisals -keys to non exempt buildings andvehicles -divorce judgements and property settlement agreements -casualty insurance policies -documents establishing joint debt and entirities excemption -name address and phone of domestic support obligation Claims Adversary Procedings Creditor objections and confirmation Dismissal or converstion Discharge up to 66 months after filing.

 CHAPTER 13 BENEFITS Chapter 13 bankruptcy allows you to repay debtors over the course of three to five years. There are many benefits to chapter 13.

1. STOPPING THE FORECLOSURE SALE Chapter 13 is a vehicle to allow you to stay in your home and repay overdue amounts while continuing to pay the on-going mortgage. The chapter 13 must be filed before the foreclosure sale.

2.INCREASING THE PAYMENT TIME ON RETAIL INSTALLMENT CONTRACTS The court in a chapter 13 requires repayment of secured creditors whose collateral is being retained by the lender, this repayment may be made over the course of 60 months in equal monthly payments. 11USC 1325 (a) (5) (B) (II)(iii)

3.STRIPPING A JUNIOR LIEN ON PROPERTY If you have two mnortgages on your property and the second one because of declining property values leave the mortgager little or no value equity on which the second mortgage can attach, it can then be treated as unsecured.When the debtro completes the chapter 13 and recieves a discharge the junior liens is removed.

 IN CHAPTER 7 AND 13 An automatic stay is created immediatley at the time of filing and lasts until proiperty no longer is property of the estate. Or the case is dismissed, closed, or a discharge is granted or denied. STOPS collection on pre-existing debt STOPS judgement enforcement STOPS other collections except DOES NOT STOP Paternity establishment Domestic support order or modification Child custody or visitation dissolution of marraige except division of property Domestice violence proceedings Collection of domestic support order from property not of the estate. Lic Suspensions Reporting back child support to credit agency Interception of income tax enforcement of a medical obligation BANKRUPTCY JUDGE MAY ALLOW domestic support obligation 101(14a) DEBT THAT accures before, on or after the date of the order for relief including interest that accures on the debt owed to or recoverable by a spouse, former spouse, child of bdebtor, or childs parent, legal guardian or responsible relative., or a governmental unit. To include alimony or maintenance or support.

 What Is a Domestic Support Obligation?

A. If it looks like support it is almost certainly a domestic support obligation and therefore non-dischargable in Chapter 7 (BC 101(14)(A) and (523 (a)(5).

 B. Even if an obligation in a divorce judgment is not a Domestic Support Obligation it is still non-dischargable in Chapter 7 (BC 523 (a)15.

C. The practical ramifications of this are significant for divorce lawyers. If you execute a divorce judgment containing hold harmless language and other financial obligations to a future ex-spouse, a bankruptcy filing will not help your client if the former spouse demands payment.

 D. If you are is in financial trouble do not agree to hold harmless language and do not agree to pay large amounts of money. It may be wise to disclose in the divorce judgment that a bankruptcy may be necessary.

 E. In the Sixth Circuit the plain language of a divorce judgment is effective even if it can be unfair. While a client can still file Chapter 13 on property settlement obligations, this is rarely an option due to the “Merlin Clause” almost all divorce judgments contain. These clauses provide that property settlement becomes a Domestic Support Obligation if a bankruptcy is filed. If a client has stipulated to that language, he or she is probably not entitled to any relief in bankruptcy.

NON DISCHARGEABLE DEBT -TAXES FILED WITHIN TWO YEARS -DEBTS OBTAINED BY FRAUD -DOMESTIC SUPPORT OBLIGATION -DEBTS FOR WILLFUL INJURY INITIAL CONSULTATION AGREEMENT, fee agreement Provided to the Client 5 business days after the consultation takes place. 11 USC 528 (a) (1). To be signed.

 WHEN YOU FILE A BANKRUPTCY ESTATE IS CREATED EXEMPTIONS 7&13 Choose federal or state Must disclose PROPERTY FEDERAL EXEMPTION MICHIGAN EXEMPTION

HOUSEHOLD 1 ITEM 525 525

 HOUSEHOLD AGGREGATE 10755 3450

BURIAL NA 575

CROPS, ANIMAL, FEED NA 2300

PETS NA 575

VEHICLE 3225 3175

COMPUTER NA 575

TOOLS/TRADE 2025 2300

 ASSOCIATION SHARE NA 1150

 HOMESTEAD 20200 34,450

 HOMESTEAD TENANCIES NA UNLIMITED HOMESTEAD 65 NA 51,650

 WILD CARD 10125[UNUSED RESIDENTIAL] 1075 N/A

JEWLERY 1350 N/A

 LIFE INSURANCE 10775 N/A