Bankruptcy

Bankruptcy – What can’t it do?

Although Bankruptcy eliminates most of your financial debt, there are some exceptions.  Bankruptcy does not eliminate the rights of your secured creditors.  Secured creditors are those that have taken a mortgage or lien on your property as collateral for a loan, such as your home mortgage or vehicle loans.  These creditors may need to take payments over time or may eliminate your obligation to pay additional money, if your property is taken.  However, if you intend to keep your property, you must continue to pay the creditors.

Bankruptcy does not discharge, or free you of, certain types of debts.  These debts are those such as child support, alimony, most student loans, court restitution orders, criminal fines, and most taxes.

Bankruptcy does not protect your cosigners on your debts.  The cosigner on your loan, in most cases, will still need to repay all of the loan.

So, what can Bankruptcy do or not do?  It can be complicated.  We’ve handled many Bankruptcies and can help you with your specific needs.  We know what you can and can’t do, to give you the best outcome.

Call us for a consultation today!

Todd Courser 810-245-0813

Bankruptcy- What does it do?

If Bankruptcy is a good fit for you, it will relieve your stress.  It is designed to give you a fresh start, a clean financial slate.  It will eliminate your legal obligation to pay back most, or sometimes all of your debts.

Bankruptcy can stop foreclosure on your house and give you a chance to make up missed payments.  It can prevent repossession of your vehicles.  However, it cannot eliminate your mortgage or vehicle loan agreement and you must continue to make payments.

Bankruptcy can stop wage garnishment.  It can stop collection agencies from hounding you.  It can also prevent termination of utilities.

After Bankruptcy, you will be discharged or free of most of your debts.  If you’re tired of the stress from your current financial situation, let us help.

Call Todd Courser today.  810-245-0813

In the Bankruptcy Process, when do the Creditors stop calling?

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As soon as your creditors become aware that you filed for bankruptcy, they must stop all collection efforts immediately.  When a bankruptcy is filed through the court, the court then mails notices to all of your creditors listed on your bankruptcy schedules.  This may take a couple weeks.  Creditors must stop calling if you inform them that you have filed a bankruptcy and supply them with your case number.  If the creditors continue to call after they have been told of your bankruptcy, they may be liable for court sanctions and attorney fees for this conduct.  Will a bankruptcy help you get rid of the creditors?  Do you need some guidance?  We can help!

Call today!   Todd Courser   810-245-0813

Chapter 13 Bankruptcy – Needing Money to Borrow a Car

When you are in a Chapter 13 Bankruptcy the court has control over your finances under the plan you and your attorney agreed to and the creditors accepted. So in that plan you have agreed to pay the creditors a certain amount to settle the debts you have. When you have such an agreement, the amount is basically your net income after all allowable expenses are deducted. So, when you then decide to get a car and need to borrrow to get it, there are some steps you must take to get approval with the court. There is a motion before the court to modify the plan and enable you, the debtor to borrow the funds needed to get the car. If the motion is approved by the court and there are no objections, then you can proceed to borrow. Many times this will either create less paid out to the creditors because there is now a new debt that has to be serviced.  Sometimes though, the new car is purchased because there is an increase in income and so the other creditors are treated the same. If the creditors are treated the same in the plan, there is little likelihood that they will object to the new borrowing. If the creditors receive less after the new borrowing, then there is a good chance that the creditors will object to the change.

If you find yourself in such a situation, please work with an attorney who is well versed in such issues. There are very few attorneys who have experience dealing with Chapter 13 bankruptcies and far fewer yet who have any idea how to modify a plan to allow for a new car loan.  Call us for help.

Todd Courser 810-245-0813

I am now in a lawsuit – what can I expect in the course of litigation?

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One of the most stress filled moments of a person’s life is when they are involved in a lawsuit. There will generally be many steps before and after the lawsuit but the main steps are listed here for an overall understanding.  First, if you are suing someone you will begin the lawsuit by filing a summons and complaint against that person and “serving” them with a copy of the documents. Second, the person being sued will have to answer the complaint. If the person fails to answer the complaint, then the most likely scenario is that a default judgement will be entered against the person being sued. In the vast majority of my cases either the parties settle their dispute by this point or the default ends the suit with the judgment.

In cases where there is a summons and complaint and the person being sued answers the complaint, then there is a hearing set up and in many cases settlement happens at this hearing or shortly after. If the parties are unable to come to an agreement, then the hearing is usually used to set dates for trial progression or another hearing is set for more time to continue negotiating towards settlement.

If the hearing is conducted as a pretrial then dates will be set on the court calendar, allowing for discovery of issues, for motions (added legal steps) to be taken, and then for a trial date to be set.  In most trials,  the judge decides the outcome and this is called a bench trial, but in some cases, a jury trial is chosen. In small cases, the expected time to go through the entire process can be 4-9 months or longer. In larger cases, with more issues in question, cases can go on for years.

If you have been served with a summons and complaint or if you have an issue that might need to be litigated, please seek counsel that is well versed in litigating cases.  We can help!

Todd Courser   810-245-0813

Getting a loan while in bankruptcy or after….

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When a person is in the middle of a bankruptcy, most tend to think that a loan is impossible, but to the contrary, many people are able to get a car loan or other type of loan while in the middle of  or immediately following the bankruptcy. They are able to get a loan, but the rate is normally very high and the terms are usually hard to stomach. Many lenders are more than willing to lend to people who have troubled credit. If you are in that spot, it’s best to shop around. I have had plenty of clients receive offers for new credit cards within 6 months of being out of their bankruptcy.

In the case of home loans, typically a person, who has made it through the bankruptcy and has kept some form of installment loan (such as a car), is able to receive a new home loan within 3 years after filing the bankruptcy. I have had clients who got a new home loan within 6 months of being done with the bankruptcy, but that is an exception not the rule.  Most people are able to borrow for a home again, 24 – 36 months after the bankruptcy.

If you are considering a bankruptcy to deal with exploding debt, but also need to borrow money for a vehicle or a home, then find good counsel and plan your steps wisely, before you proceed.

We can help! Call Todd Courser 810-245-0813.

200k Plus of IRS Debt Eliminated in Bankruptcy

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I have had many cases where clients have used bankruptcy filing to eliminate IRS debts that totalled hundreds of thousands of dollars.  At times working with the IRS becomes impossible and I suggest that the client consider filing bankruptcy to stop the IRS from attacking.  The IRS has payment plans and reductions in debt owed, but sometimes it makes more sense for the client who qualifies, to discharge their debts in bankruptcy.  The IRS debt must meet some specific tests, must be income tax from a return previously filed or assessed, and also meet some other tests.  Some cases are just easier and wiser to settle with a bankruptcy than through the IRS system.  If you find yourself owing the IRS, my advice is to seek out good counsel who actively practices in both areas of tax and bankruptcy to find out the best path to get your life back on track.

Call my office to set up your consultation today.   Todd Courser 810-245-0813

Attempting to Settle an Unsecured Debt with Chase Bank

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I had a client who had two lines of credit with Chase Bank. The lines of credit had a balance in the hundreds of thousands of dollars and related to the client’s business. The client had never been late on the lines of credit and had paid on time for several years. The type of loan the client had with the bank was commercial.  There was a personal guarantee attached and Chase Bank had the ability to accelerate or call the loan.  Chase Bank chose to do so. The client asked for several extensions and modifications but the Bank kept attempting to call the loan and eventually demanded payment for the balance. The client had nearly a 800 credit score and was forced to default on the loan. The Bank went through the process of attempting to collect with ever increasing letters and calls to the client. I had thought the case would either end in bankruptcy or some sort of settlement with Chase Bank. The client had little to fear from the bankrupcty court but wanted to pay the bank what he could and so I kept attempting to settle the account. Eventually Chase Bank sent the account to a law firm that specializes in collecting and settling.  The client made numerous offers.  I was able to eventually settle the account for 25% of the loan balance and the client did not have to file for bankruptcy. The client was pleased to finally be through with the issue and said, “I just wanted them to let me keep paying on the account but they refused and said I had to pay in full.”

The actions of banks don’t always make sense.  This client ended up paying the creditor by negotiating the account but the client preferred that route to filing for bankruptcy.

Call my office to set up your consultation today.   Todd Courser 810-245-0813

Converting a Chapter 13 bankruptcy to a Chapter 7

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A Chapter 13 bankruptcy is a repayment plan, where the repayment is normally the net amount of excess income beyond the allowable expenses.  This net amount is paid out for 60 months and is divided among the unsecured creditors.  If, during the repayment, the debtor’s net income changes because of loss of income or some other change in the debtor’s life, it may be wise to request for a conversion from a Chapter 13 to a Chapter 7, where the debts will be discharged, not repaid.  If you find yourself in this situation and need guidance, please give me a call to set up a consultation.

Todd Courser – 810-245-0813

Student Loans and Bankruptcy

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For the most part, bankruptcy will discharge most debts.  However, that is not the case when it comes to student loans.  The vast majority of time, student loans are not dischargeable in bankruptcy.  They will simply ride through and you will still owe the money.  There is now a small exception that has been established, that has caused some to re-look the issue.  In some rare cases judges have discharged student loans, but only in some pretty extreme cases.  Judges are not quick to do this often, or at all, but they have done it.  If you think you may have such an extreme situation, then retain a good bankruptcy attorney who is able to research the case law and apply the judge made decisions to your situation, to see if you have a case that fits with past decisions.  If you need to consider such issues, please give my office a call for a consultation.

Todd Courser 810-245-0813

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Todd Courser
Todd Courser & Associates
frontdesk@toddcourser.com

455 South Main Street
Lapeer, MI 48446
USA

810-245-0813