Ask a Question

Get free answers to your Bankruptcy legal questions from lawyers in your area.

Lawyers, increase your visibility by answering questions and getting points. Answer Questions
Michigan Bankruptcy Questions & Answers
1 Answer | Asked in Bankruptcy for Michigan on
Q: Annual employment bonus paid a month after filing chapter 7. Disclosed on amended petition. Can any portion be exempted?

and if so, under what code? Using MI state exemptions. Not a gov't/civil employee.

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Jun 1, 2024

When dealing with an annual employment bonus received after filing for Chapter 7 bankruptcy, you might be able to exempt a portion of it using Michigan state exemptions. Since you’re not a government or civil employee, the regular Michigan exemptions apply to your case.

In Michigan, you...
View More

4 Answers | Asked in Bankruptcy for Michigan on
Q: Should a joint credit card still be reporting to Experian after a discharged Chapter 7 if only 1 person filed?

1 person filed, the other did not. It's still on both credit reports.

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Mar 24, 2024

When a Chapter 7 bankruptcy is discharged, debts listed in the bankruptcy should be reflected as such on your credit reports. However, joint credit cards represent a shared responsibility. If only one person files for bankruptcy, the other account holder remains responsible for the debt.

If...
View More

View More Answers

4 Answers | Asked in Bankruptcy for Michigan on
Q: Should a joint credit card still be reporting to Experian after a discharged Chapter 7 if only 1 person filed?

1 person filed, the other did not. It's still on both credit reports.

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Mar 21, 2024

When a debt obligation like a credit card is "joint", e.g., where the non-bankrupt "joiner" has signed an issuer document to be liable for the debt balance, yes, that obligation will continue to be reported to the credit bureaus for both of the joint obligors.

View More Answers

4 Answers | Asked in Bankruptcy for Michigan on
Q: If a person declares bankruptcy will they lose their house?

Thousands secretly charged on credit card by spouse.

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Nov 9, 2023

Much of your answer is fact-dependent.

E.g., is your mortgage debt current? Who controls the family finances/checkbook? How much credit card debt has been accrued? Is there equity value in the residence above the mortgage balance?

A Chapter 7 bankruptcy is a so-called...
View More

View More Answers

2 Answers | Asked in Bankruptcy, Divorce and Family Law for Michigan on
Q: How does marital property work in chapter 13 bankruptcy if only one spouse filed for bankruptcy.

Married in august 2019, brought home September 2019, he filed for chapter 13 bankruptcy in March 2023, he filed for divorce in July 2023

T. Augustus Claus
PREMIUM
T. Augustus Claus pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Oct 12, 2023

In Michigan, marital property is divided equally between the spouses in the event of a divorce. However, this rule can be modified by the court based on a number of factors, including the length of the marriage, the contributions of each spouse, and the needs of the children. In the case you... View More

View More Answers

2 Answers | Asked in Bankruptcy, Divorce and Family Law for Michigan on
Q: How does marital property work in chapter 13 bankruptcy if only one spouse filed for bankruptcy.

Married in august 2019, brought home September 2019, he filed for chapter 13 bankruptcy in March 2023, he filed for divorce in July 2023

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Nov 5, 2023

In a Chapter 13 bankruptcy where only one spouse has filed, the individual's portion of marital property can be included in the bankruptcy estate. This means that the debtor's share of jointly owned property may be affected by the repayment plan. The non-filing spouse's separate... View More

View More Answers

2 Answers | Asked in Bankruptcy for Michigan on
Q: I am nearing the end of a Chapter 13 bankruptcy. I need to convert to Chapter 7, however since I am behind on my payment

I do not have the funds to catch up on the amount that I am behind on the payments. I also am unable to convert because my lawyer says that I must pay her $3000 to do that. I also have no money to pay the $3000. What (if anything) can I do to salvage my case? My case is set to close at the end of... View More

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Sep 8, 2023

In your difficult situation, it might be beneficial to negotiate a reduced fee with your current attorney or seek out a more affordable attorney to assist you in converting your case from Chapter 13 to Chapter 7. Additionally, you might consider contacting a legal aid organization in California for... View More

View More Answers

2 Answers | Asked in Bankruptcy for Michigan on
Q: I am nearing the end of a Chapter 13 bankruptcy. I need to convert to Chapter 7, however since I am behind on my payment

I do not have the funds to catch up on the amount that I am behind on the payments. I also am unable to convert because my lawyer says that I must pay her $3000 to do that. I also have no money to pay the $3000. What (if anything) can I do to salvage my case? My case is set to close at the end of... View More

Ralph Reisinger
Ralph Reisinger
answered on Aug 16, 2023

For starters make sure you can convert. If you own your home the house value may have gone up substantially and a conversion may not be possible. If you can convert, shop around, you can always substitute attorney's and there may be someone who can help you for less than the quoted amount.

View More Answers

2 Answers | Asked in Bankruptcy, Consumer Law, Banking and Collections for Michigan on
Q: What type of lawyer do I need for my issue?

So the situation is I have a credit card that I got behind on and was being bombarded with 2-3 calls a day on average totaling way more than the reasonable amount allowed. Everytime I would try and awnser to request they stop I would get dead air then disconnected leading me to believe they are... View More

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Sep 8, 2023

You may consider reaching out to an attorney who focuses on consumer rights or consumer protection law to handle this matter. They can assist in assessing whether the collection practices violate the Rosenthal Fair Debt Collection Practices Act or the Telephone Consumer Protection Act, and help you... View More

View More Answers

1 Answer | Asked in Bankruptcy, Contracts and Health Care Law for Michigan on
Q: When a continuing Care Facility files Chapter 11 does it void the contract which includes return of part of entrance fee

My cousin recently left a continuing care facility that filed chapter 11 two weeks later. Per her contract she gave 60 days notice but moved out in 20. Is she obligated to pay for the remaining 40 days since she probably wont be getting the 90% of her entrance fee back that was promised in her... View More

Brent T. Geers
Brent T. Geers
answered on Jul 18, 2023

A bankruptcy alone does not void a contract. Chapter 11 is a business reorganization. Essentially someone - a trustee - takes over the business, managing its assets and liabilities. Largely, that process does not affect you the consumer.

Think about it: you have likely bought products or...
View More

2 Answers | Asked in Bankruptcy and Collections for Michigan on
Q: I have roughly 100,000 equity in my house am in disability and have about 20,000 of debt I am having an issue paying

Comb of 3 cc and left over debt from repo car. What are my options I can’t get a home equity loan as I don’t make enough.

Ralph Reisinger
Ralph Reisinger
answered on Jun 19, 2023

It depends on your home value. If the home is worth 200,000 the combination of the State Exemption $69,200 and the liquidation cost of $20,000 would reduce the required payoff to around $10,000. If the house is worth more, the amount you would have to pay in would be less because the liquidation... View More

View More Answers

3 Answers | Asked in Bankruptcy for Michigan on
Q: If I have equity in my house will I still be able to file chapt 7 bankruptcy?
Ralph Reisinger
Ralph Reisinger
answered on Jun 19, 2023

The question is, can you protect the equity. It depends on your marital status, the type of debt you have and the amount of equity. For example if you are single, and you use the Federal exemptions you can protect up to 27,900 if you use Federal Exemptions or $46,255 if you use State Exemptions.... View More

View More Answers

2 Answers | Asked in Bankruptcy for Michigan on
Q: Once I sign a reaffirmation agreement, how long does it take the attorney to file it in court?

I signed reaffirmation agreements for my car and a credit card and I would just like to know how long does it take to be filed and received by the court. I know when you file bankruptcy that it is received by the courts pretty quickly so I was wondering if it worked the same way with reaffirmation... View More

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on May 12, 2023

Every Reaff Agreement is exactly that, a mutual agreement between a debtor and the creditor, all subject to approval by the Court.

Authorized signatures of both parties is of course required.

Once aa mutually subscribed Reaff Agreement, with Motion and Affidavit is in hand,...
View More

View More Answers

3 Answers | Asked in Bankruptcy for Michigan on
Q: I am interested in converting my Chapter 13 bankruptcy to a Chapter 7.

My attorney (the one who is representing me in the Chapter 13), wants me to pay her $3,000 to convert. I do not have $3,000, and I am aware that the court only charges a small ($25?) conversion fee. I understand that she wants to get paid for her work, which is understandable. However, I don't... View More

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Mar 20, 2023

If you simply cease to make payments to the Ch. 13 Trustee, that office will file its own motion to convert or dismiss, and you can appear at the resulting hearing and express your wishes, which will probably be granted.

It is more problematic if there is a wage garnishment in place that...
View More

View More Answers

1 Answer | Asked in Bankruptcy, Consumer Law and Foreclosure for Michigan on
Q: I owed SBA disaster loan of $24,000 and then in 2019 I did a chapter 7 due to financial problems, .

The sba loan was discharged, the problems is, everytime I try to refinance my house, they still block the refinance and demand the $24000 , and banks back away.

Is this legal what they are doing or illegal?

What can I do for them cease-and-desist?

Thomas. R. Morris
Thomas. R. Morris
answered on Feb 13, 2023

The bankruptcy discharge prohibits a creditor from demanding payment of a discharged debt. However, it does not require a prospective lender to lend to you. Therefore, it is illegal for the creditor holding a discharged debt to try to enforce it against you, but legal for a bank to deny you a... View More

3 Answers | Asked in Bankruptcy for Michigan on
Q: What to do when attorney was instructed to file paperwork and he did not, causing a dismissal of case ?

Its a bankruptcy case

Edward Gudeman
Edward Gudeman
answered on Dec 23, 2022

Certainly, you should speak to your attorney about filing a motion to reopen the case and obtain permission to file the appropriate documents. He or she should obviously comply with your request. Refiling is also a possibility, but there are factors that might prevent it.

If there is no...
View More

View More Answers

3 Answers | Asked in Bankruptcy for Michigan on
Q: Trustee objected to exemptions due to me exceeding limits. Should I amend my schedule C? It is for chapter 7

I have 44,000 in equity for my home, I am still paying mortgage, completed reaffirmation agreement that lender sent. The allowed exemption was 27,900. I have the same issue with my car, I do not own, however there is 7,000.00 in equity, the trustee states I only can exempt 1475.00. I am up to date... View More

Cristina M. Lipan
Cristina M. Lipan
answered on Nov 29, 2022

It doesn't mean anything if no one objected. Most creditors don't, but the Trustee may do so for the benefit of all creditors. If you have exceeded your exemptions, amending your schedules won't make any difference (it is a question of fact, not just about what you assert on your... View More

View More Answers

3 Answers | Asked in Bankruptcy for Michigan on
Q: Trustee objected to exemptions due to me exceeding limits. Should I amend my schedule C? It is for chapter 7

I have 44,000 in equity for my home, I am still paying mortgage, completed reaffirmation agreement that lender sent. The allowed exemption was 27,900. I have the same issue with my car, I do not own, however there is 7,000.00 in equity, the trustee states I only can exempt 1475.00. I am up to date... View More

W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Nov 29, 2022

I agree with the first answer by Ms. Lipan, as far as it goes. You need the guidance of experienced Michigan bankruptcy counsel.

More specifically, with respect to your home property, it is usually acceptable to deduct ten (10%) percent from gross value as "costs of sale", and...
View More

View More Answers

3 Answers | Asked in Bankruptcy for Michigan on
Q: Trustee objected to exemptions due to me exceeding limits. Should I amend my schedule C? It is for chapter 7

I have 44,000 in equity for my home, I am still paying mortgage, completed reaffirmation agreement that lender sent. The allowed exemption was 27,900. I have the same issue with my car, I do not own, however there is 7,000.00 in equity, the trustee states I only can exempt 1475.00. I am up to date... View More

Michael Hollins Sr.
Michael Hollins Sr.
answered on Nov 29, 2022

Exemption planning is more of an art than an exercise. You should be careful about how you exempt property when updating your petition. Contact a licensed bankruptcy attorney to help you with that part of things, or to represent you on this one. You could lose more than you gain without the... View More

View More Answers

2 Answers | Asked in Bankruptcy for Michigan on
Q: Would a court typically grant permission to take out a 401k after a job loss?
W. J. Winterstein Jr.
PREMIUM
W. J. Winterstein Jr.
answered on Nov 16, 2022

The working presumption in a Ch. 13 case is that the debtor will retain and manage his assets, and that is set when a Plan is confirmed (there are provisions to modify a plan after confirmation).

There is also a Bankruptcy Code provision that states that a debtor must first procure court...
View More

View More Answers

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.