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When dissolving my LLC, I need to pay back several personal guarantees, including an SBA 7 loan with monthly repayments, a line of credit from a credit union, overdue business rent, and accountant fees with net 30-day terms. No creditors have contacted me yet, but I want to ensure I don't show... View More 
answered on Apr 28, 2025
You need to ask whether there is advantage or virtue in not showing preferential treatment. If you don’t have enough to repay everyone in full, you might want to use your own best interest as the criteria for deciding who to pay. An attorney could help you to choose between different options to... View More
When dissolving my LLC, I need to pay back several personal guarantees, including an SBA 7 loan with monthly repayments, a line of credit from a credit union, overdue business rent, and accountant fees with net 30-day terms. No creditors have contacted me yet, but I want to ensure I don't show... View More
answered on Apr 29, 2025
You might want to consider filing for bankruptcy. Chapter 7 will clear all the debt and priority is not an issue, if all the debt you describe is unsecured. If you do not qualify for Chapter 7 or do not want to take advantage of it, Chapter 13 will place all unsecured debt on equal footing.... View More
Is a surviving spouse responsible for paying off credit card debts that were solely in the deceased spouse's name if the jointly owned home could cover these debts?
answered on Mar 8, 2025
The surviving spouse will only be responsible for the credit card obligation if they were a co-signer. If the decedent's estate is probated, then the creditor will file a claim against the estate. Unless the personal representative's estate objects to the balance amount (which they... View More
Is a surviving spouse responsible for paying off credit card debts that were solely in the deceased spouse's name if the jointly owned home could cover these debts?
answered on Feb 28, 2025
As a general rule in Michigan a spouse is not responsible for the sole debt of a deceased spouse. If the home was held in the entireties - as husband and wife, a creditor of the deceased spouse could not attach a lien to the home. Whether a creditor could make a claim against the probate estate,... View More
I am considering filing for Chapter 7 bankruptcy due to a garnishment related to an eight-year-old car repossession, with a remaining balance of $13,000. The creditor takes my tax refund annually, including $3,400 this year. I haven't sought professional advice yet. My concern is a discrepancy... View More
answered on Feb 21, 2025
Dealing with garnishments and old debts is stressful. Chapter 7 bankruptcy might be an option, but the income difference between your 1099 and bank statements needs careful attention. Courts require accurate financial records.
Since you haven't consulted a lawyer, a free consultation... View More
His net income is $1400 bi-weekly. They took $370 out of his last check. We cannot afford to lose that much money. Do we have any way to fight this. Is there a way to file bankruptcy without it costing us thousands of dollars?
answered on Jan 8, 2025
You have two options. You can file a motion for time payments with the Court, this may allow you to lower the amount you pay on a monthly basis and it will stop the garnishment. Or you can file a Bankruptcy. If you qualify for a Chapter 7, it should not cost you thousands of dollars. You should... View More
His net income is $1400 bi-weekly. They took $370 out of his last check. We cannot afford to lose that much money. Do we have any way to fight this. Is there a way to file bankruptcy without it costing us thousands of dollars?
answered on Jan 8, 2025
Probably. But it depends on a lot of information that a bankruptcy attorney would need to know. Some example questions:
What notice did you receive of the lawsuit from which he is being garnished?
If nothing then you can file paper to get before the judge and explain why you did not... View More
His net income is $1400 bi-weekly. They took $370 out of his last check. We cannot afford to lose that much money. Do we have any way to fight this. Is there a way to file bankruptcy without it costing us thousands of dollars?
answered on Jan 8, 2025
In order for your husband's wages to be garnished, the creditor has already obtained a judgment against him. If you cannot negotiate a payment plan for the amount of the judgment, the alternative is to file a Chapter 7 or Chapter 13 bankruptcy.
Filing a bankruptcy may eliminate the... View More
I recently purchased a mattress on a store credit card due to our old mattress catching on fire due to a candle. I am drowning in debt and can’t keep up with payments. I am thinking of filing bankruptcy, Is this going to look terrible that I recently purchased a mattress? I thought I could keep... View More
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answered on Sep 9, 2024
The answer really goes to intent. Did you plan to file bankruptcy when you purchased the mattress? Had you spoken to counsel prior to purchasing it? Did you make a good faith effort to pay for it? Also the cost of the mattress is important - a $5000 mattress going to cause more issues than one... View More
I recently purchased a mattress on a store credit card due to our old mattress catching on fire due to a candle. I am drowning in debt and can’t keep up with payments. I am thinking of filing bankruptcy, Is this going to look terrible that I recently purchased a mattress? I thought I could keep... View More
answered on Sep 10, 2024
I am assuming the mattress is not a luxury item as they are not usually seen as splurging money. (especially when your previous one caught on fire). It is something that is needed in your daily life, like electricity and internet access. That being said, if you took out a loan to purchase the... View More
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answered on Jun 26, 2024
To start the process of filing for Chapter 7 bankruptcy in Warren, Michigan as a low-income individual, here are the key steps:
1. Credit counseling: Complete a mandatory pre-filing credit counseling course from an approved provider.
2. Gather documents: Collect financial documents... View More
and if so, under what code? Using MI state exemptions. Not a gov't/civil employee.
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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
1 person filed, the other did not. It's still on both credit reports.
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.
1 person filed, the other did not. It's still on both credit reports.
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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
My father's estate has been tied up in legal proceedings for 2 years because the opposing attorney frequently cancels court dates without valid reasons. Additionally, my own attorney is unresponsive to calls and emails. The delay is largely due to disputes over IRS checks and farming... View More
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answered on Apr 1, 2025
You have multiple concerning issues occurring simultaneously with your father's estate. Given the unresponsiveness of your current attorney and the difficulty in securing new representation, you might consider filing a complaint with the Michigan Attorney Grievance Commission regarding your... View More
I am at risk of repossession for my vehicle and concerned about being pursued for the remaining amount on the contract afterward. I have considered using a 1099-C charge-off to settle the debt with my lender, but they informed me that debt settlement discussions would only occur after repossession.... View More
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answered on Mar 24, 2025
You're facing a challenging situation with your auto loan. Unfortunately, a 1099-C form isn't something you can use to initiate a settlement - it's actually a tax form lenders issue after they've already forgiven a debt, making the forgiven amount potentially taxable income.... View More
In Michigan, Oct 31,2019, I received a small claims court monetary judgement against the defendant. The defendant filed for chapter 11 bankruptcy in the U.S. Bankruptry court Eastern District of Michigan in Jan 2020, I was unaware of this. The bankruptcy estate was fully administrated and... View More
answered on Jul 11, 2024
You should consult with a bankruptcy attorney on this first, but ordinarily, you would need to declare you receive some form of financial assistance or income from him, which is different from the entirety of his social security.
Thousands secretly charged on credit card by spouse.
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
Married in august 2019, brought home September 2019, he filed for chapter 13 bankruptcy in March 2023, he filed for divorce in July 2023
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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
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