Bankruptcy

Typically in our first meeting, I will explain to you the process steps, the costs of filing and try to give you some idea if you will qualify for bankruptcy.  You will receive a bankruptcy questionnaire along with a list of documents that you will need to bring to your second meeting.  We will make the second appointment.  I suggest that you take a week to answer the questionnaire thoroughly and to collect all of the documents.  This makes for fewer calls and trips back to the office.

For the second meeting, you will bring back the thoroughly filled out questionnaire, all of the documents and the first payment toward the bankruptcy (typically $500).  We will go through the questionnaire, the documents and clarify any questions that you may have about your situation or the bankruptcy process.  We will then set up a third meeting.  Before you come to the third meeting, you will need to complete credit counseling online.  We will explain to you how to do that.

At the third meeting, you will pay the remaining balance on the bankruptcy.  We will go through the petition with you, making any corrections that are needed.  You will sign your petition.  Then we will file the petition with the bankruptcy court.

The court will provide us with a date for your Meeting of Creditors (hearing), which will be about 30 to 45 days after the filing date.  I will go to the meeting with you.  If there are no adjustments required by the Trustee, then the discharge will be received in about 2 months.  Sometimes there are minor adjustments or additional documents that the Trustee will require.  In that case, we will supply what is needed and then the discharge will happen in about 2 months.

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

I have now sat through plenty of hearings (Meeting of Creditors) and I have a short list of what NOT to do in the hearing and some good first steps to making your hearing go well.

1. While waiting for a hearing with my clients I watched a pair of debtors (husband and wife) go through a hearing while both wearing Rolex watches they had not listed on their petition.

Note to Self – Don’t wear jewelry other than your wedding bands.

2. I witnessed another hearing where the debtors (who were not my clients) had not listed the fact that they had a condo in Hawaii.

Note to Self – List all the property you have because the trustee, who is running the hearing, can see nearly all real estate transactions electronically.

3. You need to actually go to your hearing even if you have “changed your mind.”

4. Don’t argue at the hearing and blame your spouse for the boat that was bought or the bills that didn’t get paid.

5. Don’t transfer anything to a family member to avoid the power of the trustees – they can see most transfers and attack you both civilly and criminally.  They can also sue your family member to get the item back.

6. Don’t fight with your spouse OR your attorney.

7. Don’t lie to the Trustee.

8. Make sure you bring your ID and your Social Security card.  Get there early.

9. If you don’t understand the question then say, “I don’t understand the question.”

10. Make sure you are polite,  honest and answer each question directly.

If you are in need of bankruptcy help, please call my office and set up a free consultation.  We will help you through your hearing!

Todd Courser 810-245-0813

You cannot give preference to your family over the other creditors that are waiting to be paid back. If you attempt to do this, the Trustee can, and will many times, go after and try to collect from the family member that was paid the money. There is a look back period, where the Trustee looks to see what you’ve done with your money.  If the payback happened far in advance of the bankruptcy then it can be outside the scope of the Trustee and will at times be allowed.  If you are uncertain about your situation, come talk to me.

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

The first rule for keeping your house is to keep current on the payments. If you are not current then the lender will begin to take steps to foreclose on the property. In a bankruptcy, the court will slow the process for a foreclosure but they will eventually allow the lender the latitude to foreclose on the home.

If you decide to let your house go back to the lender then the normal rules apply for a foreclosure.  The owner can stay in the home through the required steps the lender has to take to complete the foreclosure. In Michigan, with the way the rules for foreclosure work and how slow the system moves, it is not unusual for a owner to stay in the home for a year or more. In one case, I had a client stay in their home for nearly 3 years due to the failure of the mortgage company to do the proper steps of foreclosure (Note: This is not typical – the typical time is 1 to 1.5 years from the time of your last payment).  Many bankruptcy clients who wish to give the house back to the lender, will stay through the redemption period and simply wait for the lender to give them notice that it is time to move out.

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

Many people don’t want to be placed in a Chapter 13 Bankruptcy but you may not have a choice. If you have the ability to repay some portion of your debt and maintain an income above the limit for the number of people in your household, then you will be forced to do a Chapter 13 Bankruptcy. In general this form of bankruptcy involves a repayment schedule that will last 60 months and you will pay back a portion of the debt you owe to the creditors. I have seen plans in these types of bankruptcies where the debtor repays 5-100% of the debt owed. If you have disposable income above your allowable household expenses, then there is a good chance you will be forced to file a Chapter 13 Bankruptcy when you attempt to ask the court to relieve you of your debt. Stop wondering if you would be a Chapter 13 or 7.  Call my office to set up your consultation today!   Todd Courser 810-245-0813

Many clients going through bankruptcy want to keep their homes and just eliminate unsecured debts, such as credit card, medical and other similar debt. I always tell clients that if they can afford the home, are current on the payments and remain current on making the payments, then they can keep the home. The house is listed as a asset and a debt in the bankruptcy but the debtors are generally allowed to keep their homes if they choose to do so.

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

The use of a Chapter 13 bankruptcy can be a very useful tool if the person qualifies for this chapter and has a 2nd mortgage on a home, which has a value that is less than the value of the 1st mortgage. So if the home is valued at $1 less than the first mortgage then the 2nd mortgage is considered to be completely unsecured and therefore it can be treated as an unsecured debt under the Chapter 13 bankruptcy.  Upon completion of the payments on the Chapter 13 bankruptcy the 2nd mortgage can be considered to be extinguished. We have used this chapter for many clients to give them a much lower debt load post bankruptcy and to put them back on track to financial health.  To consider this option you need to retain counsel that is well equipped and versed in the bankruptcy code. Only about 1 out of 10 of our clients are appropriately situated for a Chapter 13 and only some of those have a house that is valued correctly to use the code to discharge the 2nd mortgage. So please retain competent counsel if you are seeking and considering relief under the bankruptcy code.   Call today 810-245-0813