If you're facing overwhelming debt, garnishment, foreclosure, or other aggressive creditor collection activity, filing Chapter 7 or Chapter 13 bankruptcy may be the best solution for you. To determine whether you should file bankruptcy, your first step should be to consult with an experienced bankruptcy attorney.
Consulting with a Bankruptcy Attorney
By consulting with an experienced bankruptcy attorney, you should be able to determine what your options are and what solution makes the most sense for you. I offer free in-person consultations. So, there is no harm to sit down with me and discuss your situation. When I consult with potential clients, I review their situation in detail, examining their finances, assets, debt obligations, and personal goals. This information allows me to not only explain a person's options, but also the best way to resolve their problems while moving toward their personal goals, such as saving a home or car, or rebuilding their credit.
Researching Bankruptcy
I always appreciate it when I speak with a potential client that has taken the time to do a little research about what bankruptcy entails. There are some very good bankruptcy information sources on the internet; however, there is also a lot misinformation. When researching bankruptcy, a person should always use great caution when basing a decision on what they read on the internet. Getting the opinion of an experienced bankruptcy attorney that practices in your area is always the best option for getting the right information. If your looking to get some basics and you live in the Western District of Michigan, the Bankruptcy Court's website is a good place to start: U.S. Bankruptcy Court - Western District of Michigan
How to Choose an Attorney
Attorneys can vary greatly in experience, manner, and cost. While I think paying a fair price to file bankruptcy is extremely important, I think it is equally, if not more important, to find an attorney that you feel comfortable with and that has the experience to effectively represent you. When you consult with an attorney, don't be afraid to ask what their experience is. Also, don't be shy asking the attorney to explain how bankruptcy works. While bankruptcy law is very technical and confusing, a good attorney should be able to translate the complex concepts and legalese in a way a layperson can understand.
Documents Needed to File Bankruptcy
When you prepare a bankruptcy, Chapter 7 or Chapter 13, there are certain documents that must be provided to your attorney so that the filing can be correctly prepared. There are also documents that must be provided to the trustee that is assigned to your case. If you are going to file bankruptcy, you should expect to have to provide the following: (1) copies of your most recent city, state and federal tax returns, (2) proof of your household income, (3) bank statements, (4) vehicle titles, (5) real estate documents (i.e. recorded deed & mortgage, mortgage statement(s) state equalized statement, proof of homeowners insurance, etc.), (6) statement demonstrating the type and value of all investments, (7) statement relating to insurance policies, (8) judgments of divorce, and (9) copies of statements/bills demonstrating the debts owed. This list is by no means complete. When you consult with an attorney they should be able to tell you exactly what is needed.
The Bottom Line
If you think you need to file bankruptcy, make sure to consult with an experienced local bankruptcy attorney. I have helped thousands of individuals through their difficult financial times. I offer free consultations and will take the time to understand your situation and help you determine what solution is best for you. Please call me at (616) 389-0629 or visit my website at www.ryanbeachlaw.com.
This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
GR
Showing posts with label debtfree. Show all posts
Showing posts with label debtfree. Show all posts
Friday, October 16, 2015
Friday, May 29, 2015
Can I Eliminate Medical Bills in Bankruptcy?
Medical debt is considered general unsecured debt and is dischargeable in a Chapter 7 or Chapter 13 bankruptcy. How you discharge or eliminate that debt is determined by what type of bankruptcy you file.
Chapter 7
As long as you are eligible for Chapter 7, the discharge will eliminate your personal liability for your medical bills, regardless of the amount owed. In other words, there is no limit to how much medical debt you can get rid of by filing Chapter 7.
Chapter 13
Chapter 13 bankruptcy will also eliminate your personal liability for your medical bills; however, there are debt limits in Chapter 13. Currently, the unsecured debt limit in Chapter 13 is $383,175.00. If you exceed the unsecured debt limit, you are not eligible for Chapter 13.
In Chapter 13, medical bills are put into a creditor class referred to as general unsecured debt, which would also include such debts as credit cards and unsecured loans. These types of debts are generally paid back at a fraction or percentage of what is owed. The unpaid fraction or percentage is eliminated or discharged upon plan completion and entry of a discharge order. The amount that much be repaid to general unsecured creditors depends on several factors, such as your income, budget and unexempt equity in personal or real property that you own.
The Bottom Line
Medical debt can be eliminated or discharged by filing bankruptcy. If you are struggling with medical debt or other debts, consult with a bankruptcy attorney to determine what type of bankruptcy makes sense for you and how your debts would be treated. I, like most bankruptcy attorneys, offer free consultations. So, take advantage and make sure you avoid garnishment and other nasty collection actions.
Visit Law Offices of Ryan F. Beach
This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
Chapter 7
As long as you are eligible for Chapter 7, the discharge will eliminate your personal liability for your medical bills, regardless of the amount owed. In other words, there is no limit to how much medical debt you can get rid of by filing Chapter 7.
Chapter 13
Chapter 13 bankruptcy will also eliminate your personal liability for your medical bills; however, there are debt limits in Chapter 13. Currently, the unsecured debt limit in Chapter 13 is $383,175.00. If you exceed the unsecured debt limit, you are not eligible for Chapter 13.
In Chapter 13, medical bills are put into a creditor class referred to as general unsecured debt, which would also include such debts as credit cards and unsecured loans. These types of debts are generally paid back at a fraction or percentage of what is owed. The unpaid fraction or percentage is eliminated or discharged upon plan completion and entry of a discharge order. The amount that much be repaid to general unsecured creditors depends on several factors, such as your income, budget and unexempt equity in personal or real property that you own.
The Bottom Line
Medical debt can be eliminated or discharged by filing bankruptcy. If you are struggling with medical debt or other debts, consult with a bankruptcy attorney to determine what type of bankruptcy makes sense for you and how your debts would be treated. I, like most bankruptcy attorneys, offer free consultations. So, take advantage and make sure you avoid garnishment and other nasty collection actions.
Visit Law Offices of Ryan F. Beach
This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
Monday, February 23, 2015
Michigan Drivers Responsibility Fees
Michigan Drivers Responsibility Fees are routinely discharged in Chapter 7 and Chapter 13. However, there is an exception to discharge for debt that is “a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit, and is not compensation for actual pecuniary loss.” 11 USC 523(a)(7). I believe the nature of these fees are monetary sanctions. In other words, they seem to be punitive in nature and not compensating for an actual pecuniary loss.
My interpretation of the Bankruptcy Code is that these fees should survive a Chapter 7 bankruptcy discharge (Section 523(a)(7) is a self-executing exception to discharge, so no adversary proceeding is needed). Section 1328 of the Bankruptcy Codes, which governs what is discharged in Chapter 13, does not include the 523(a)(7) exception to discharge. So, these fees are discharged in Chapter 13. The State is fully aware of the 523(a)(7) exception to discharge. They use it all the time for statutory fines related to overpayment of unemployment benefits. It may be that they've made a policy decision to allow these debts to be discharged/eliminated in their records when a person files Chapter 7.
The Bottom Line
Chapter 7 may work, it may not. Chapter 13 is definitely the route to go if you're not willing to take any chances in getting rid of Michigan Drivers Responsibility Fees. In all cases, a person overwhelmed with debt should consult with an experienced bankruptcy attorney. An experienced bankruptcy attorney should be able to evaluate your situation and help you decide the best way to get the relief you need.
Visit Law Offices of Ryan F. Beach
This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
My interpretation of the Bankruptcy Code is that these fees should survive a Chapter 7 bankruptcy discharge (Section 523(a)(7) is a self-executing exception to discharge, so no adversary proceeding is needed). Section 1328 of the Bankruptcy Codes, which governs what is discharged in Chapter 13, does not include the 523(a)(7) exception to discharge. So, these fees are discharged in Chapter 13. The State is fully aware of the 523(a)(7) exception to discharge. They use it all the time for statutory fines related to overpayment of unemployment benefits. It may be that they've made a policy decision to allow these debts to be discharged/eliminated in their records when a person files Chapter 7.
The Bottom Line
Chapter 7 may work, it may not. Chapter 13 is definitely the route to go if you're not willing to take any chances in getting rid of Michigan Drivers Responsibility Fees. In all cases, a person overwhelmed with debt should consult with an experienced bankruptcy attorney. An experienced bankruptcy attorney should be able to evaluate your situation and help you decide the best way to get the relief you need.
Visit Law Offices of Ryan F. Beach
This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
How Will My Bankruptcy Affect My Spouse?
Only one spouse filing bankruptcy is very common. A bankruptcy filing should not impact the non-filing spouse's credit; however, the filing may cause an issue with any debt that is held jointly and any unprotected or "unexempt" assets. Consulting with an experienced bankruptcy attorney will give you an idea if there are any issues. The non-filing spouse should attend the bankruptcy consultation with the filing spouse so that these potential issues can be thoroughly explored and so that they are fully aware of any issues that may exist.
Joint Debt
If there is a joint debt and only one spouse files bankruptcy, only the filing spouse's liability on the joint debt is discharged (be mindful that some debts are or can be deemed nondischargeable). In other words, the non-filing spouse will be liable for the entire joint debt after the filing spouse receives a bankruptcy discharge.
Equity in Joint Property
If there is significant equity in joint property, there is a risk of liquidation (forced sale) by the Trustee if the filing spouse is filing a Chapter 7. Sitting down with an experienced bankruptcy attorney to do a thorough review of your assets will allow you to determine if any liquidation issues exist.
Required Information
The bankruptcy filing will require the filing spouse to provide proof of the total household income. The filing spouse will have to provide copies of the non-filing spouse's pay stubs (or other similar income statements) and tax returns, both of which involve their personal information. This information is used by the debtor's attorney and Trustee to determine such things as eligibility in Chapter 7, the plan payment in Chapter 13, and potential assets/disposable income related to tax refunds.
Visit Law Offices of Ryan F. Beach
This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
Joint Debt
If there is a joint debt and only one spouse files bankruptcy, only the filing spouse's liability on the joint debt is discharged (be mindful that some debts are or can be deemed nondischargeable). In other words, the non-filing spouse will be liable for the entire joint debt after the filing spouse receives a bankruptcy discharge.
Equity in Joint Property
If there is significant equity in joint property, there is a risk of liquidation (forced sale) by the Trustee if the filing spouse is filing a Chapter 7. Sitting down with an experienced bankruptcy attorney to do a thorough review of your assets will allow you to determine if any liquidation issues exist.
Required Information
The bankruptcy filing will require the filing spouse to provide proof of the total household income. The filing spouse will have to provide copies of the non-filing spouse's pay stubs (or other similar income statements) and tax returns, both of which involve their personal information. This information is used by the debtor's attorney and Trustee to determine such things as eligibility in Chapter 7, the plan payment in Chapter 13, and potential assets/disposable income related to tax refunds.
Visit Law Offices of Ryan F. Beach
This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
Friday, February 20, 2015
Will I Lose My Bank Account Funds If I File Bankruptcy?
One of most common questions I get from potential debtors is, "can the Trustee take the money in my bank account?" If you are filing Chapter 13, it is important to know that there is no liquidation of assets. However, you must go through a liquidation analysis and pay your unsecured creditors at least as much as they would get in a theoretical Chapter 7 bankruptcy. So, the threat of losing assets to liquidation is only present when you file Chapter 7.
The Bankruptcy Code was designed so that individuals could get a "fresh start." Part of that fresh start is making sure that an individual doesn't lose everything to Trustee liquidation. Elimination or discharging all of your debt is an incredible relief; however, it wouldn't mean much if you also lost your home, car, bank account funds, clothing, furniture, appliances, etc. To ensure a fresh start, the Bankruptcy Codes allows for certain exemptions.
Cash in a bank account is protected or exempted with an exemption referred to as "wildcard." Currently, the wildcard exemption has a limit of $12,725.00. However, your ability to exempt the bank account funds may be limited by the other assets you have an ownership in. If you have other assets that require exemption and the wild card is the only way to protect them, there may be a liquidation issue.
If you are considering filing bankruptcy, consulting with an experienced bankruptcy attorney is a must. I, like many bankruptcy attorneys, offer free consultations. When I consult with potential clients I always discuss in detail their assets and the available exemptions so that they know what to expect in Chapter 7 or Chapter 13.
Visit Law Offices of Ryan F. Beach
This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
The Bankruptcy Code was designed so that individuals could get a "fresh start." Part of that fresh start is making sure that an individual doesn't lose everything to Trustee liquidation. Elimination or discharging all of your debt is an incredible relief; however, it wouldn't mean much if you also lost your home, car, bank account funds, clothing, furniture, appliances, etc. To ensure a fresh start, the Bankruptcy Codes allows for certain exemptions.
Cash in a bank account is protected or exempted with an exemption referred to as "wildcard." Currently, the wildcard exemption has a limit of $12,725.00. However, your ability to exempt the bank account funds may be limited by the other assets you have an ownership in. If you have other assets that require exemption and the wild card is the only way to protect them, there may be a liquidation issue.
If you are considering filing bankruptcy, consulting with an experienced bankruptcy attorney is a must. I, like many bankruptcy attorneys, offer free consultations. When I consult with potential clients I always discuss in detail their assets and the available exemptions so that they know what to expect in Chapter 7 or Chapter 13.
Visit Law Offices of Ryan F. Beach
This website is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
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