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Michigan Bankruptcy Questions & Answers
4 Answers | Asked in Bankruptcy and Real Estate Law for Michigan on
Q: Can second mortgage lender seek post-sale deficiency judgement after liability was discharged in Chapter 7

In 2009, my neighbor filed for Chapter 7 bankruptcy and kept her house with two mortgages, 100k+ and 25k. Her personal obligation for the second mortgage was discharged. A loan modification of the second mortgage in 2015 adjusted the principle, term, and interest rate. In late 2017, my... Read more »

Thomas. R. Morris
Thomas. R. Morris answered on Jun 24, 2020

If the borrower on the second mortgage loan received a discharge in bankruptcy, and did not reaffirm the debt, that borrower no longer has personal liability, and cannot be pursued for the loan, whether or not the amount owed is a "deficiency."

There are some assumptions in your...
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2 Answers | Asked in Bankruptcy for Michigan on
Q: I am currently in a chapter 13 plan which will end on 4/28/20 in the state of Michigan.

I have made all of my payments, in fact I have made 63 payments in a 5 yr plan they started taking payments on my filing date, since my plan will be done 4/28/20, do I still have to give up the 2020 stimulus, I have not received yet and not sure when I will receive it. I have read all of the... Read more »

Timothy Denison
Timothy Denison answered on Apr 15, 2020

If you meet all the other requirements, you should receive your stimulus check without interference from the trustee.

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2 Answers | Asked in Bankruptcy for Michigan on
Q: Certification Regarding Domestic Support Obligations

I received a pre discharge notice regarding my Chapter 13 bankruptcy case and it spoke about the form listed above. Is this something I have to complete or is it not required? I don't want to miss anything that could prevent my case from discharging. I pulled up the dorm and it does not have... Read more »

Timothy Denison
Timothy Denison answered on Apr 3, 2020

Check with your bankruptcy attorney but you should not have to take any action nor should it hold up your discharge.

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2 Answers | Asked in Bankruptcy and Collections for Michigan on
Q: My wages are being garnished from my check. Can I just raise my federal withholding a lot and get it back next year?

I have a garnishment from my employer. They take payroll taxes off before determining disposable income. What's to stop me from just raising my additional federal withholding by a lot to make my disposable income too low to garnish and then get huge federal refund next year?

Edit:... Read more »

Mark Bredow
Mark Bredow answered on Mar 29, 2020

No. A creditor receives up to 25% of your gross income by wage garnishment. This is taken from each check. By increasing our withholdings, you would not impact the amount taken, and would reduce your takehome income even further. You should consider setting up a payment plan and consulting... Read more »

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1 Answer | Asked in Bankruptcy for Michigan on
Q: Discharge recommended case status

My chapter 13 bankruptcy case is now closed and final disbursements were made. I am receiving a refund due to overpayment. My case status still says "discharge recommended" so at what point will I receive my discharge letter?

Timothy Denison
Timothy Denison answered on Mar 26, 2020

Generally 30-60 days.

2 Answers | Asked in Bankruptcy for Michigan on
Q: We are in a chapter 13 and I'm wondering what will happen to our stimulus check? Considering Michigan shutdown.

My job put me on layoff a week before the shutdown here in Michigan and now our shop is closed like many others. My husband is still working as he is a mechanic but that is a unknown as to how long that will be as its based on business and if there isn't any then he wont be working. So with... Read more »

Trent Harris
Trent Harris answered on Mar 26, 2020

You're probably in luck! Sect. 1113 of the CARES Act, which was just passed by the Senate, says the definition of “income” in the Bankruptcy Code for chapters 7 and 13 will exclude coronavirus-related payments from the federal government from being treated as “income” for purposes of... Read more »

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5 Answers | Asked in Bankruptcy for Michigan on
Q: Got layed off March 19, 2020. On March 20, a debt collector took all the money from bank account, I have no money left.

The money that was in my account was to file bankruptcy, all the courthouses are closed to the public due to the Coronavirus. Everything I had was in my account, now I have no money for rent, food, my car. Is there any way to fight this during a national emergency?

Robert Keyes
Robert Keyes answered on Mar 22, 2020

You can still file a bankruptcy. Bankruptcy courts are still operating electronically.

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2 Answers | Asked in Bankruptcy and Gov & Administrative Law for Michigan on
Q: Is there any attorneys that would file an objection on garnishment before 3/12/20 out of the goodness of your heart?

How about bankruptcy? I am completely bankrupt to even pay to file for it. I have many other legal issues if bankruptcy isn't your forte.

Timothy Denison
Timothy Denison answered on Mar 9, 2020

Contact you local bar association or legal aid society. They maintain lists of attorneys who offer pro bono or reduced fee legal services

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1 Answer | Asked in Bankruptcy for Michigan on
Q: My chapter 13 bankruptcy case status now says DISCHARGE RECOMMENDED. How soon will my wage withholding be released?

How soon after this status are my wages released so I can receive normal, ungarnished paychecks again?

Timothy Denison
Timothy Denison answered on Mar 6, 2020

Probably 4-6 weeks.

2 Answers | Asked in Bankruptcy for Michigan on
Q: Chapter13 can’t afford plan finance problems Has equity in free clear home what are options

No attorney-I’m on disability fix income can I qualify for hardship discharge? Homestead exemption what does it do?

Robert Keyes
Robert Keyes answered on Mar 5, 2020

Do you have an attorney? If so talk to that person. If not you need to supply much more information.

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1 Answer | Asked in Bankruptcy for Michigan on
Q: Where can I find a cheap bankruptcy lawyer in upper michigan
Timothy Denison
Timothy Denison answered on Feb 28, 2020

Your local bar association or legal aid society.

2 Answers | Asked in Bankruptcy for Michigan on
Q: If I live in michgan and on ssi and have crieit card debt what the law

Can I go to jail for not paying my criit card debt

Robert Keyes
Robert Keyes answered on Feb 11, 2020

No.

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1 Answer | Asked in Bankruptcy for Michigan on
Q: How long does it take to get a low interest rate on products/services after Chapter 13?
Timothy Denison
Timothy Denison answered on Feb 10, 2020

The interest rate gradually decreases month by month as you make your timely monthly payments.

1 Answer | Asked in Bankruptcy for Michigan on
Q: How long after Chapter 13 case status is updated to "discharge recommended" will wage withholding stop?
Timothy Denison
Timothy Denison answered on Feb 10, 2020

Should be 2-3 weeks once discharge is granted.

1 Answer | Asked in Bankruptcy for Michigan on
Q: Credit after Chapter 13 bankruptcy

How long does it take to reestablish yourself after a chapter 13 bankruptcy discharge such as being able to get credit, loans, a home purchase or a vehicle?

Timothy Denison
Timothy Denison answered on Feb 10, 2020

Most of it will be immediately available, however, beware the interest rates because many will be excessive.

1 Answer | Asked in Bankruptcy for Michigan on
Q: Student loans after Chapter 13

How soon after Chapter 13 discharge will federal student loan balances be reinstated and expecting payment?

Timothy Denison
Timothy Denison answered on Feb 9, 2020

60-90 days.

2 Answers | Asked in Bankruptcy for Michigan on
Q: How long after the last plan payment is made that my income withholding is released?

My checks have been garnished since the beginning of my chapter 13 plan and my payments have been paid timely. I am on my last payment for the last creditor that has to receive payment. At what point can I expect to have the income withholding ended so I can receive my full paycheck again?

Timothy Denison
Timothy Denison answered on Feb 9, 2020

Within a couple weeks, normally.

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1 Answer | Asked in Bankruptcy for Michigan on
Q: I have been in my chapter 13 bankruptcy for 39 months now. I owe one payment. What does "Interim review - Z" mean?

It's been 39 months my case has been receiving payment and I only have one last payment to go. My case status says interim review Z and I was wondering what that means?

Timothy Denison
Timothy Denison answered on Feb 8, 2020

Simple trustees review for payments and compliance. Pay that last payment and get out ASAP.

2 Answers | Asked in Bankruptcy for Michigan on
Q: Currently in Chapter 7. Tried to sell my house twice, but trustee never responded to buyer.

The reason I filed is contractors destroyed our house making it unsafe. we fell behind on bills and had to file to avoid losing house. The trustee stated that my house is worth more than I stated; however I informed her about the damage and the amount to fix it. House is now in possession of bank.... Read more »

Thomas. R. Morris
Thomas. R. Morris answered on Jan 30, 2020

This is too complicated and the facts too sparse for effective discussion in this forum, and you should consult with an attorney, privately, so that the advice you received is confidential. You may be able to file a motion to compel the trustee to abandon the property, but to do so would probably... Read more »

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2 Answers | Asked in Bankruptcy for Michigan on
Q: What happens if the trustee didnt file the final report for distribution of assets before the due date?

My Chapter 7 has been reopened due to receiving assets, the judge ordered trustee to file final report on June 1, 2019 but I havent gotten any information since then and the status of the case is still "awaiting trustee's report"

Thomas. R. Morris
Thomas. R. Morris answered on Jan 27, 2020

There is not usually a deadline, and the order is unusual. It is probably up to you to enforce the order, and ask for the court to impose a consequence.

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