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Timestamp: 2019-04-18 12:56:35+00:00

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WE HAVE WATCHED WALL STREET, BIG BANK AND BIG BUSINESS GET BAILED OUT. WHAT ABOUT YOU? The Bankruptcy code was written for you and can be your own personal bail out. Flint BankruptcyAttorney Terry Bankert presents on Flint D ivorce and Flint Bankruptcy 810-235-1970.
Chapter 7—Liquidation: In a Chapter 7 the debtor turns over all non-exempt property to the Chapter 7 Trustee: this Trustee sells or liquidates the property and distributes the proceeds to creditors according to the priority scheme set forth in the bankruptcy code, and usually in a small one-time payment. The debtor will be released (discharged) from the unpaid portion of many types of debt unless a creditor objects to the debtor’s discharge, or unless a creditor objects to the dischargeability of its particular claim. The Chapter 7 Trustee is always appointed by the United States Trustee and is usually a member of a panel of Trustees.
Chapter 11—Reorganization: The purpose of Chapter 11 is to allow the debtor a breathing spell from creditors, thereby enabling the debtor to reorganize its financial affairs. This is the most expensive and complicated type of bankruptcy and can last for years. If successful, a plan of reorganization would be proposed which is subject to the vote of creditors.
Chapter 12—Family Farmer Bankruptcy: Chapter 12 can only be filed by a family farmer with regular annual income. This proceeding is similar to a Chapter 13, described below.
PERSONAL BAILOUT OR Discharge: The main reason why any individual files bankruptcy is to try to get a discharge from debts which are owing to creditors. 11 U.S.C. § 727 says that all individual debtors are eligible to receive a discharge unless he or she committed one of the “bad acts” described in 11 U.S.C. § 727.
III. WHAT IN BANKRUPTCY IS A DOMESTIC SUPPORT OBLIGATION.
Nondischargeability of Domestic Support Obligations: 11 U.S.C. § 523(a)(5) provides that a DSO cannot be discharged in Bankruptcy.
Before the Bankruptcy Reform Act, 11 U.S.C. § 523(a)(15) provided that property settlement debts were nondischargeable unless the debtor lacked the ability to pay it according to the criteria described in the statute, or unless discharging the property settlement would result in a benefit to the debtor that outweighed the detriment to the non-debtor spouse, former spouse or child. The old law also required that the non-debtor spouse commence an adversary proceeding in bankruptcy court to determine the nondischargeability of the property settlement and, pursuant to 11 U.S.C. § 523(c) the complaint in that adversary proceeding was required to be filed within 60 days after the first date set for the meeting of creditors pursuant to 11 U.S.C. § 341. If a nondischargeability complaint was not timely filed, the property settlement was automatically discharged under 11 U.S.C. § 727. 11 U.S.C. § 523(c) often resulted in non-debtor spouses having to spend limited funds in order to “protect” their property settlements.
Thus, under the Bankruptcy Reform Act, even if a debtor’s obligation in a divorce decree does not come within the definition of “domestic support obligation” so as to be nondischargeable under § 523(a)(5), it is still nondischargeable under § 523(a)(15) if it is a property settlement debt to a spouse, former spouse or child.
In applying the Bankruptcy Reform Act, bankruptcy judges are now more likely to view any obligation in a divorce decree as being nondischargeable by a party to that divorce who later winds up in bankruptcy.
Also, the Reform Act amends 11 U.S.C. § 523(c) so that the non-debtor spouse is not required to file an adversary proceeding in order to preserve the nondischargeability of the debtor’s obligations that fall within the scope of 11 U.S.C. § 523(a)(15). This is an important change in the law, designed to protect non-debtor spouses and children by eliminating the need for them to spend precious resources trying to “protect” the property settlement by commencing an adversary proceeding in the bankruptcy court.
Taken together, the Reform Act’s changes to 11 U.S.C. § 523(a)(5) and (15) operate to exempt from discharge all alimony, maintenance, support, property settlements, hold-harmless obligations, etc. to a spouse, former spouse or child so long as they are incurred in the course of a divorce or separation, or in connection with the divorce decree, separation agreement or other order.
A debt which is nondischargeable under 11 U.S.C. § 523(a)(15) (e.g., a property settlement that is not in the nature of alimony, maintenance or support) is dischargeable in a Chapter 13 under the Reform Act if the debtor makes all payments under the Chapter 13 plan. However, a domestic support obligation which is nondischargeable under 11 U.S.C. § 523(a)(5) is nondischargeable even under Chapter 13, even if the debtor makes all of its payments due under the plan and receives a super-discharge. See 11 U.S.C. § 1328(a).
In Chapter 13 cases, domestic support obligations get better treatment than do property settlements. For example, the failure of a Chapter 13 debtor’s failure to pay a domestic support obligation post-petition is grounds for denial of confirmation of the Chapter 13 plan (11 U.S.C. § 1325(a)(8)), and if the failure occurs post-confirmation, it is a ground for dismissal or conversion of the Chapter 13 case (see 11 U.S.C. § 1307(c)(11)). Debts for property settlement are not given similar protection. Furthermore, the debtor’s plan is required to cure all domestic support obligation arrearages during the life of the Chapter 13 plan, unless the recipient agrees to a different treatment.
Bankruptcy’s automatic stay is a comprehensive injunction that stays actions against the debtor, property of the debtor and/or property of the bankruptcy estate. The automatic stay is embodied in 11 U.S.C. §362(a), but there are 28 statutory exceptions to the automatic stay: those exceptions are set forth in 11 U.S.C. §362(b)(1)–(28).
(G) of the enforcement of a medical obligation, as specified under title IV of the Social Security Act.
In addition to criminal proceedings, a wide variety of civil actions can proceed against a person who files bankruptcy including civil actions regarding paternity, civil actions to establish or modify domestic support obligations, civil actions regarding custody or visitation, civil actions regarding domestic violence, and civil actions to dissolve a marriage (but actions concerning property of the debtor’s estate are stayed).
Income/wage withholding orders can still proceed, even if they target the debtor’s property or property of the estate.
Suspension of driver’s license or professional license to the extent that state law provides for such a suspension, reporting of overdue support, can proceed.
VII. Can Property Settlements in Divorce Judgments Be Challenged as Fraudulent Transfers?
In and out of bankruptcy, there are various laws that generally enable creditors to avoid (i.e. undo) transfers made or obligations incurred that have the effect of improperly putting a debtor’s assets beyond the reach of his or her creditors. Generally, transfers made (or obligations incurred) are considered to be a “fraud on creditors” when they are “actually fraudulent” (e.g. with actual intent to hinder, delay or defraud a creditor: See MCL 566.34(a)) or “constructively fraudulent” (e.g. transfers made (or obligations incurred) in exchange for less than reasonably equivalent value and by one who is either: (i) insolvent or rendered insolvent by the transfer made or obligation incurred (See MCL 566.35(1)), or (ii) engaged (or about to engage) in a business or transaction with unreasonably small assets (See MCL 566.34(b)(i)) or (iii) who intends or reasonably should have known that he or she is about to incur debt that is beyond his or her ability to pay when the debt becomes due. (See MCL 566.34(b)(ii)). Outside of bankruptcy, creditors can use MCL 566.31, et seq., which is Michigan’s version of the Uniform Fraudulent Transfer Act (“UFTA”) to avoid and recover fraudulent transfers. In bankruptcy, the debtor or trustee can use 11 USC §§ 544 and 548 to recover fraudulent transfers (11 U.S.C. § 544 “incorporates” applicable non-bankruptcy law, including UFTA).
WHAT DO YOU HAVE IN COMMON WITH WALL STREET, BIG BUSINESS OR BIG BANKS? YOU ALL CAN GET A BAILOUT, YOURS IS CALLED A CHAPTER SEVEN BANKRUPTCY.
People , individual and small business owners, have a right to several types of Bankruptcy Chapters to pick from. Just like Wall Street, Big Business and Big Banks they are a personal type of Bail out.
Most common in use by the individual or couples is a Chapter Seven Bankruptcy.This is commonly referred to as a full liquidation chapter. In Chapter 7 you must fully disclose your income, property and debts. The law requires that you disclose all of your financial activities over the last several years. Afer your case is filed you will go to a meeting with a bankruptcy trustee and your creditors may attend. If all goes well and it most ofter does you will receive your bankruptcy discharge 3 months later.
At the end you will receive a discharge or elimination of your listed debt. Most people get to keep all of their possessions. The most common exceptions are luxury items and investment real estate.
A chapter eleven helps business to stay afloat. A chapter 12 is a reorganization for farmers.
A chapter thirteen is a reorganization plan to help you pay in full certain debt and discharge the remainder. It involves a 3 or 5 yr payment plan.
I will focus my information on chapter seven. Nationally 10% of the people who file under chapter 7 will be found to have too high of an income. and will have to file a chapter 13.
There is a credit counseling requirement . It is two onilne classes. One before you file and another after you file. They cost about $60.00 dollars. Your filing fee is $306.00 a credit report is $45 and the attorney fees range from $1,000.00 to $1,500.00. My firm charges $1,000.00.
After your petition for bankruptcy is filed your creditor must stop harrassing you. You creditors will be violating Federal Law if they attempt to collect a debt while you have an open bankruptcy petition.
This powerful shield is called an automatic stay.If your creditor contacts you after a bankruptcy filing just give them your filing number.
There are exceptions to the automatic stay . They are collection of child support, spousal support (alimony) and certain enforcement actions by the IRS. Generally you will get 100% relief.
Downtown Flint Office. Contact us today or a free appointment.
have kids, no place to turn when unpaid bills face me at the end of the month. How do I get out of this debt?
CHAPTER SEVEN BANKRUPTCY is a way. The process is you have to income qualify. You disclose all your assets, income and your debt. In your Bankruptcy papers all your financial activities for the past several years are disclosed.Three months later you receive a discharge (cancellation) of most types of debts and emerge with all or most of your property except things like luxury items and real estate investments.
Are you suffering from loss of income, garnishment, creditor harassment, repossession, foreclosure, lawsuit, medical bills or loss of governmental support ? Following is how you stop creditors from harassing you on the phone.
Once you file a bankruptcy which takes usually a week or more after our first meeting you have a powerful protection its called an automatic stay. This stay stops any efforts by your creditors to collect debts from you. When they call just give them your bankruptcy filing number, the name of the court, and the date of filing. They will back off . If they do not they are violating Federal Law.
Everything aimed at you, except taxes, student loans , child support and spousal support, will stop. This includes garnishment of wages, repossess cars and foreclosure of your home will stop.
It is our logo but It’s no joke being broke. We know it. This is Michigan in a depression in the beginning of an era that will later be called the de-industrialization of America. Our government is bailing out Wall Street, big business and Big Banks. A personal bankruptcy will bailout you out.
You qualify for a Chapter 7 Bankruptcy if you make less than $42,562 in a one person household, $50,738 in a two person household.
Most pensions and retirements are exempt from bankruptcy. The rest of your property becomes part of your Bankruptcy estate and is under the control of a bankruptcy trustee.
Problems may arise if you have unloaded property at less than market value in the previous two years. All of your property is included even marital property. The trustee will look at all your property, its value and the categorical exemptions to see if there is property to sell and give the proceeds to creditors after keeping 8% for the trustee.
The trustee will have no interest in your property that is protected by exemptions ( dollar amounts of vale) or that will not have a net profit after sale and payment of liens and trustee costs. Most people in bankruptcy keep their personal belongings. If you owe more on your house than what it is worth the trustee in bankruptcy will have no interest in it.
Yes in the following circumstances .
You have to be current on your mortgage and car note. You have no significant non exempt value in your house or car. Exempt values, $21,000 plus change in your house and $3,400 plus change in your car. Example. You car is paid off and if you sold it today you could get $3,000 for it. You get to keep your car. Make a no fee appointment with me and I will explain the exemptions to you.
You cannot repair your credit by paying your bills slowly. It is your right to get rid of your bills and have a fresh start. The Bankruptcy Laws will allow you to keep most of your personal possessions.
Downtown Flint Office. Contact for a free appointment.

References: § 727
 § 727
 § 523
 § 523
 § 523
 § 341
 § 727
 § 523
 § 523
 § 523
 § 523
 § 523
 § 523
 § 523
 § 523
 § 1328
 § 1325
 § 1307
 §362
 §362
 § 544