Category Archives: Chapter 7 Facts

What are the Basics of a Chapter 7 Bankruptcy?

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When people talk about filing bankruptcy, they usually are referring to Chapter 7 bankruptcy, which allows you to discharge, or wipe out, most debts that you owe. In many cases, filing Chapter 7 bankruptcy is the quickest and easiest way for a person who owes a lot of debt to get a “fresh start” in life. So long as you are eligible for Chapter 7 bankruptcy relief, and depending on your individual situation, you could find yourself free of all dischargeable debts within just a few short months.

How Much Time Does It Take to Complete a Chapter 7 Bankruptcy?

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A Chapter 7 bankruptcy begins upon filing a bankruptcy petition. Once the petition is filed, the court will issue a case number and an automatic stay is invoked. The automatic stay prohibits creditors from collection activity. This affords the Debtor relief from phone calls, foreclosure, repossessions, garnishment or other collection activity. Approximately thirty days after filing the petition, a meeting is scheduled called the First Meeting of creditors. At this meeting, creditors may attend to ask questions about the case. The meeting is conducted by a Trustee who is appointed by the court. The purpose of the Trustee is to review the schedules and collect any nonexempt property or preferences on behalf of the creditors.

Approximately sixty days after the first meeting the court will issue a discharge. During the sixty day waiting period prior to discharge, the creditors can file objections to their claim being discharged. The most common reason for a creditor to file an objection is fraud. If no creditor files an objection which is called an adversary proceeding, all debts are discharged. The Trustee can also file an objection to discharge during the sixty day waiting period. The most common reason for a Trustee to file a complaint to deny discharge is hiding assets or failure to cooperate with the Trustee in providing documents and records. Even if a creditor files an objection to their debt being discharged, the court will still issue a discharge, which will apply to the remaining creditors. Once the discharge is issued creditors are permanently barred from any collection activity. Even after the discharge is entered the Trustee may hold the case open for collection of assets. This usually happens when the Debtor has some asset to collect such as an unexempt tax refund or personal injury action that has not been resolved. The Trustee keeping the case open should have little effect on the Debtor. In general most Chapter 7 bankruptcy cases are completed in approximately ninety days.

Call Firebaugh & Andrews for your Free Consultation 734-722-2999

Bankruptcy Rules For Alimony, Spousal and Child Support

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Divorce often puts tremendous strain on both spouse’s finances. One spouse is suddenly paying alimony, spousal or child support, while the other may be scrambling to find a job after staying home with the kids for years. Both have increased living expenses with the move to two separate residences.

Either of the parties may consider bankruptcy as a way to get rid of some of their debt burden from the marriage and move on. Filing for bankruptcy can free an individual from many of the debts they currently owe and help them start over. But if you’re divorced — especially if you pay alimony or other support — consider carefully whether bankruptcy is the right step for you.

You should be aware that your court-ordered obligations to pay alimony or other forms of support won’t go away in a bankruptcy. Court-ordered support cannot be discharged or eliminated in a bankruptcy.

After the bankruptcy concludes, you will still owe the same alimony or support payments you did previously, just as if the bankruptcy never happened. Other, unsecured debts such as personal loans or credit-card bills can be eliminated in a bankruptcy, possibly putting you in a better position to pay your ongoing support responsibility.

On the other hand, if you are the spouse collecting support payments, know that this money will be considered income in determining whether you can repay any of your debts. This helps determine what type of bankruptcy you will file.

If you have some ability to repay your lenders, you will need to use the Chapter 13 bankruptcy structure. In Chapter 13, you work out a repayment plan to pay off your debts over time. You must stay current in your alimony or support payments to keep your Chapter 13 repayment plan in effect and conclude your case. Property settlements from a divorce may be dischargeable under Chapter 13, though.

If your income is inadequate to pay off even part of your debt over time, Chapter 7 liquidation will be more appropriate. You will be able to resolve many debts in Chapter 7, but your child support or alimony payments will not be affected.

If you’re considering filing for bankruptcy in Michigan, call Firebaugh & Andrews for your free consultation. 734-722-2999.

Do I Have to List All My Credit Cards in my Bankruptcy?

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The Bankruptcy Code requires a debtor to treat all like creditors alike. This means  you cannot chose to list some creditors in a bankruptcy while keeping other creditors out of the bankruptcy. The Bankruptcy Code requires a debtor to list all creditors or people they owe money to in the bankruptcy.

However, if you have a zero balance on a credit card at the time you file the bankruptcy then that particular company is not a current creditor of yours because you do not owe them any money. Therefore, you are not required to list them as a creditor in your bankruptcy.

However, just because you do not list a particular credit card does not necessarily mean you can keep using that account. Credit card agreements almost always have provisions that allow the credit card company to close the account in the event of a bankruptcy or may close or suspend an account for any other reason permissible by law.  So even though you do not list a particular credit card on your bankruptcy if they discover you have filed a bankruptcy (and they do have ways of checking for bankruptcy filings) they may close your account.

Questions call Firebaugh & Andrews for your free consultation 734-722-2999

Two ways to buy a house being after bankruptcy in Michigan.

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Being declared bankruptcy under one of the bankruptcy-protection act prove to be devastating to many. This “many” includes the home owners or buyers. The buyers dream get shattered being declares a bankrupted personal. No banks or mortgage firm will allow him or her to have the house he or she wants to purchase. But there’s a couple of ways which can let them to have their dream home.
1. Be Patient: Wait for one or couple of years before buying a house. In the period one should either pay off the debt completely or in maximum. A retirement plan or 401(k) assets is also helpful in this matter. The individual, also need to remember, should save as much as possible during this period as the down payment will be high and paying that needs a deposit not a loan or credit as it will become added-burden on them.

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The Best Reasons to Use Chapter 7 for Discharging the Debt

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When there’s a bankruptcy, the debtors left between selecting the best chapter for recovering i.e. Chapter 7 and Chapter 13. Firebaugh & Andrews is a Westland Michigan Chapter 7 Bankruptcy Attorney who is helping the debtors to select the best option i.e. Chapter 7 for filing to discharge the debt. They understand that:
1. The chapter provides a fresh start to the debtors. They are allowed to keep a lien after the completion of the case which run for a period of three to six months;
2. The property that the debtor acquires or will after filing is excluded from the bankruptcy estate. But they become part of the estate when the debtor acquires certain property within the 180 days of filing. This happen in the cases of inherited property, property from divorce decree or settlement agreement or proceedings from a life insurance policy;
3. Unlike Chapter 13, the Seven never impose a limit on the debt of the filer might or must have. The Thirteen says that a debtor is ineligible if his or her secured or unsecured debt exceeds the debt limits;
4. The debtor is free from any court-approved repayment plan. They after being discharge of debts by filing Chapter 7 are not bound to or are responsible to repay the debt which completely contradict the Chapter 13 that pass the verdict of repayment of debt even after discharge

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Solve Your Personal Bankruptcy with Chapter 7 In Westland Michigan

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Solve Your Personal Bankruptcy with Chapter 7
Chapter seven of the bankruptcy cases are very popular amongst individuals too who either own a business or run a corporate house. When such enterprises fail, it is then that a Westland Michigan Bankruptcy Lawyer is often hired by an individual to try and save as much of property as can be saved. In fact, these professionals have specialized in chapter seven and know about the pros and cons of such a filing. Also, additionally, the Westland Michigan Chapter 7 Bankruptcy Attorney has fought many such cases and knows the variations which can affect an individual fighting such a case.

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Use Chapter 7 to Save Your Assets

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Use Chapter 7 to Save Your Assets
Chapter seven of the bankruptcy files are the most common types of bankruptcy files that are issued. In fact hundreds of such bankruptcy files are issued every year in the American federal courts.

A Westland Michigan Bankruptcy Lawyer is the best person to give you the details and the pros and cons of this particular chapter. Nevertheless, this chapter is perfectly suited for big industries and corporate houses. In case a corporate house or a big business is not performing very well, and has gone into a lot of debt, the owners or the directors can file a bankruptcy issue with the courts.

Almost immediately a trustee is appointed who takes in charge of the assets of the company. He may sell partial or all of the assets to be able to recover some amount of money and distribute it within the company. This might mean that many people would loose their job as well.
A Westland Michigan Chapter 7 Bankruptcy Attorney is the perfect person to help you with all the proceedings and undertakings of this particular chapter. He is the one through whom the company files a legal suit and can make proper decisions regarding the liquidation of the resources.

Call Firebaugh and Andrews to get your free evaluation. 734-722-2999

Know Chapter 7 Bankruptcy

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Know Chapter 7 of Bankruptcy
Chapter 7 is the most common type of bankruptcy files that are filed against a person. In fact this particular chapter deals mostly with liquidation of private properties. Unlike other chapter like Chapter eleven and chapter thirteen which mostly deals with reorganization of such properties, chapter seven has fixed guidelines regarding how processes should work under it. In fact a Westland Michigan Bankruptcy Lawyer is the best person to approach who can give you more details about the various clauses of this chapter. In fact when a person wants to file a bankruptcy case against anyone, one must be aware of all the clauses under each chapter so that one can take the right decisions of filing a case against somebody.
There are specialized Westland Michigan Chapter 7 Bankruptcy Attorney who deal specially with the clauses and the types of bankruptcy cases under chapter seven. These are the people whom one should approach to be able to get an in depth understanding for their cases and the clauses under this chapter. In fact it is always advisable to take professional help even if it charges a little extra to be able to get the legal part right for any type of case.  Call Firebaugh and Andrews today to get your free consultation. 734-722-2999

Bankruptcy Primer

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Bankruptcy is the legal means of wiping out debt. It may seem like a simple solution when you get in over your head in debt. Bankruptcy, though, should not be taken lightly. There are many repercussions of filing bankruptcy.

Before you file bankruptcy you should have a good understanding of the process and what to expect after you have competed filing.

Bankruptcy is meant to give a person a fresh start by relieving debt. A person can file bankruptcy for most debts they have incurred. Some debts can not be cleared through bankruptcy, though. It is very important for a person to check each of their debts to see if they can be cleared through filing.

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