Dec 21

Filing Bankruptcy on your own

I spend most of my day answering different Bankruptcy questions for individuals. On given days I may speak to as many as fifty or sixty people. When I am speaking to people they often ask if they can file bankruptcy on their own. Now I am sure in your daily life you have heard people say that they can do all sorts of things that they would never be able to do. I love those Holiday Inn commercials where there is a character doing all sorts of strange things like flying an Airplane. When the character is asked “are you a pilot” he answers “no but I did stay at a Holiday Inn”. Bankruptcy is very technical. If you miss one detail you may not be able to discharge some debt. You can get barred from court for a period of time if you file to many times or if it is done incorrectly.

At the end of the day Bankruptcy is Cheap
My office rarely charges more than $900.00 as an attorney fee to get rid off anything under $100,000.00 in debt. This is for unsecured debt only. If you don’t know the difference between the two call me and we can talk about it. If you don’t know the difference between the two this is just one more reason to hire an attorney for your filings. If you have had problems with attorneys before, and who hasn’t, then find someone who is straight forward and is willing to explain all the possible options to you.

Only a Bankruptcy Attorney
When you find an attorney make sure it is a Bankruptcy Attorney. You wouldn’t go to a dermatologist to have Heart Surgery. I have six attorney’s who work behind me in both Michigan and Illinois and without those attorney’s I could never sit on the phone and have the opportunity to help so many people. They all practice bankruptcy. Bottom line “can you file a bankruptcy on your own?” not if you want it done right.
Dec 14

Chapter 13 Bankruptcy was designed to enable individual debtors the option of applying a percentage of their future earnings to a portion of their current debts over an extended period of time. Chapter 13 authorizes the wage earner to keep the property (like your home and
car) while consolidating and reorganizing debt, allowing the debtor a reasonable opportunity to arrange installment-payments of what is owed out of future income. The debtor is protected from creditors by an “automatic stay” (an injunction against the continuance of any action by any creditor against the debtor or the debtor’s property) while the plan for repayment is developed and carried out. Debtors who file for Chapter 13 Bankruptcy agree to pay some portion of their debts over a three to five year period.

In order to qualify certain documentation and information must be provided to the attorneys at Second Start before the filing of your case.

• Copies of your state and federal tax returns for the past two years.
• Copies of the last six months of pay stubs, proof of income, or profit and loss statement for both filing and non-filing spouse.
• Copies of all leases.
• Copies of all rental agreements with tenants.
Affidavits from anyone providing monthly support payments.
• Copies of any divorce judgments or documents providing for domestic support or child support obligations.

Dec 7

In a January 25, 2007 Detroit Free Press article by reporter Frank Witsil, the economic crunch facing the metro Detroit area — and similar Midwest areas — is reaching all time highs, particularly in the area of home foreclosures. While home foreclosures do not automatically equate to individuals filing more personal bankruptcies — it is, indeed, possible to save your home from foreclosure by qualifying and filing a Chapter 13 Bankruptcy.

The figures Witsil used for his piece were provided by RealtyTrac, a company that follows mortgage rates across the country.

The Freep’s article also stated: “RealtyTrac noted that nationwide, foreclosure filings were up — by 42% — but that increase was dwarfed by the Michigan numbers, which showed 127% more filings in 2006 than in 2005.”

Home foreclosures are indeed a national epidemic. But Chapter 13 Bankruptcy filing will indeed stop an individual from losing their home. You will get to continue living in your house while you work out a payment plan to catch up on your arrearages.

If your house payments are more than a month behind, your lender has probably already started foreclosure proceedings. As time passes, thousands of dollars in penalties and legal fees can be added to the balance you owe. And every single day extra interest is added!

There are programs to help stop foreclosure regardless of your situation. With the right help, virtually any foreclosure situation can be successfully resolved. When facing foreclosure, time is of the essence. You must ACT fast to protect your rights.

We have helped hundreds of homeowners to stop foreclosure — and we can help you, too.

Dec 7

Filing for bankruptcy in Michigan or Illinois or anywhere else in the United States for that matter, requires one to realize that they are really involved in a big game of Monopoly. If you don’t believe this let me tell you that the game goes on whether you think it is occurring or not.

When you are playing a game, you know it. If you don’t think that your mortgage company is in on the game you are wrong. They penalize you when you are not timely and they even chastise you by having someone call to ask where the payment is.

“How do I know I am winning or losing?”

The answer is very basic. Just check your credit score. The reality is that most people are taking this whole event so personally that they are unable to see the game being played in front of them and that is what the biggest player in the game the credit card companies want you to do. If you understood how important debt is to your credit score you might appreciate this more fully. The debt to equity ratio is one of the key components of a credit score. By reducing your debt you actually increase your score. The easiest way to reduce it is to file bankruptcy and not only limit your debt but eliminate it all together. You might file bankruptcy if you were in Detroit or Chicago or anywhere else you are in the United States.

Nov 30

In a January 25, 2007 Detroit Free Press article by reporter Frank Witsil, the economic crunch facing the metro Detroit area — and similar Midwest areas — is reaching all time highs, particularly in the area of home foreclosures. While home foreclosures do not automatically equate to individuals filing more personal bankruptcies — it is, indeed, possible to save your home from foreclosure by qualifying and filing a Chapter 13 Bankruptcy.

The figures Witsil used for his piece were provided by RealtyTrac, a company that follows mortgage rates across the country.

According to the Freep and RealtyTrac:

• “In Macomb County, the number of foreclosure filings nearly tripled, from 2,755 in 2005 to 8,192 last year, translating to one home for every 39 in the county.

• In Oakland County, Michigan’s wealthiest county, the number jumped from 3,754 in 2005 to 7,282, meaning one of every 68 homes.

• In Wayne County, the number of filings more than doubled, from 18,176 to 40,220, translating to one of every 21 homes.

That, RealtyTrac said, is higher than any county in any of the nation’s largest metropolitan areas.”

The numbers are indeed shockingly high. It is no secret how bad the Michigan economy is — particularly in the metro Detroit area that is based around the auto industry that is reshaping and restructuring to compete in the global marketplace — and that relief isn’t going to just occur overnight.

Nov 23

Certainly the overwhelming daily headlines of job loss, home foreclosures and the growing numbers of personal bankruptcy — both Chapter 7 and Chapter 13 — are a national problem, not just here in the state of Michigan.

And while the auto industry restructuring rocks the economy of Michigan, the state’s governor Jennifer Granholm did mention bankruptcy (though in the context of business more than personal) in her fifth State of the State address from Lansing Feb. 6.

The democratic leader offered up a passionate plea for change: “My proposals will include a mix of solutions — cuts, reforms and revenues,” she said. And while her proposed budget — which will be released Thursday, Feb. 8 — will include more significant details on the direction the state will be directed in over the next few years, it is clear that Michigan’s economy and job loss issues are clearly on everyone’s minds.

“You know the new reality. Our auto industry — the anchor of our [Michigan’s] economy — has been battered as never before. Jobs have been outsourced by the tens of thousands to low wage countries,” Granholm said. “Trade agreements go un-enforced. Industrial giants and small manufacturers have declared bankruptcy — shedding workers and slashing wages.”

Certainly the context of the governor’s comments were broad — referring to businesses who file Chapter 11 bankruptcy but, without a doubt, the growing number of business bankruptcies have an overwhelming effect on those former employees — individual people in the tens of thousands — who are now out of work with no income coming in.

“So this is the heart of our challenge: Will we invest in our people so they and their children can compete and win in the new world economy? Will we invest in our people so they can build great lives here in Michigan?” she said. “Will we? Or will we fail them? Tonight I say we must choose success for our people.”

Although Gov. Granholm offered optimistic hope for a better future, the short term effects of the stagnant — if not dying — Michigan economy doesn’t provide many options for those who are unemployed and have no prospects of turning their futures around now.

Time will tell how the government and economy bounces back from the out-of-control financial issues facing individuals and businesses throughout the state of Michigan, the Midwest and across the nation. Bankruptcy — both Chapter 7 and Chapter 13 — is a very real option, in some cases maybe the only hope, for turning your life around, and providing you a second start.

Nov 16

If you’re an individual and feel that there is no way out of your debt troubles — filing bankruptcy may be your best option. Individuals file personal bankruptcy because they need financial relief and seek a second start: A Chapter 7 bankruptcy or a Chapter 13 Bankruptcy can help you overcome problems if:

• You are facing home foreclosure and fear losing your house

• There has been wage garnishment assigned to your pay checks

• You have been laid off or face other job problems

• There has been a medical crisis to you or one of your family members

• There are pending lawsuits

• You have recently been divorced

• You want to stop creditor harassment

When these problems are regular occurrences, you’ll want to learn more about what filing a Bankruptcy can do to help you. There are Bankruptcy Laws in the states of Michigan, Illinois and all over the nation designed to help you. There is life after bankruptcy: Seeking professional advice from bankruptcy attorneys and bankruptcy lawyers will help.

Nov 9

In 2005, Congress passed and President George W. Bush signed the new bankruptcy reform, making this the most significant overhaul to bankruptcy laws and filings since the original bankruptcy code was enacted in 1978. The new bankruptcy law and provisions adds further stipulations and can be complicated, making an individual seeking relief through a Chapter 7 or Chapter 13 bankruptcy filing more difficult. However, if filing bankruptcy is the only option for you, there are ways to still qualify for either a Chapter 7 or Chapter 13 bankruptcy — and you can soon begin your fresh, second start on life.

In “BAPCA: Part I” information regarding the new credit counseling requirements was offered up: basically stating that there are now Credit Counseling Programs that are mandatory before anyone is eligible to qualify for filing a Chapter 7 or Chapter 13 bankruptcy.

In “BAPCA: Part II” information was provided regarding the new limits to Chapter 7 Bankruptcy eligibility including the “Means Test” and how the Bankruptcy Court determines who can file for a Chapter 7 or whether or not they will have to move over to a Chapter 13 Bankruptcy.

There are many other significant changes to Bankruptcy law from the BAPCA reform. Here is a break down of those new changes.

Some of the significant new provisions to the Bankruptcy Prevention and Consumer Protection Act of 2005:

• Debtors must pursue Credit Counseling before filing for bankruptcy.
• Debtors must also undergo additional counseling, both for budgeting and debt management.
• Debtors with incomes above a certain level may not be able to file for Chapter 7 bankruptcies; they may be required to repay portions of their debts through filing a Chapter 13 Bankruptcy.
• Chapter 7 Bankruptcies have an extended waiting period between six and eight years.
• In a Chapter 13 Bankruptcy Filing, if your income is above the state’s median income, the filer must pay back debts within a five-year plan.
• Attorneys are subject to new Bankruptcy Law requirements, which may make it more difficult (and more expensive) for filers to find lawyers to handle their cases.

Nov 2

You probably have spent some time researching different bankruptcy attorneys and their informational websites — and you probably keep coming across information about this new Bankruptcy reform: the Bankruptcy Abuse Prevention and Consumer Protection (BAPCA).

In 2005, Congress passed and President George W. Bush signed the reform, making this the most significant overhaul to bankruptcy laws and filings since the original bankruptcy code was enacted in 1978. The new law and provisions adds further stipulations and can be complicated, making an individual seeking relief through a Chapter 7 or Chapter 13 bankruptcy filing more difficult. However, if filing bankruptcy is the only option for you, there are ways to still qualify for either a Chapter 7 or Chapter 13 bankruptcy — and you can soon begin your fresh, second start on life.

In “BAPCA: Part I” information regarding the new credit counseling requirements was offered up: basically stating that there are now Credit Counseling Programs that are mandatory before anyone is eligible to qualify for filing a Chapter 7 or Chapter 13 bankruptcy. This update explores the:

New Limits to Chapter 7 Bankruptcy Eligibility

Under the new BAPCA reforms, there are certain limitations to who can or cannot file a Chapter 7 Bankruptcy (“liquidation”). There is a now a certain level of income that may prohibit eligibility from filing a Chapter 7 Bankruptcy.

The Bankruptcy Court looks at the debtor’s current monthly income (usually looking at the prior six months) against the state’s median for a family of similar size to the debtor’s. Usually, if the filer is below the median, a Chapter 7 Bankruptcy can be filed.

If the income is above the median for the state they reside, the debtor may need to pass a “means test” for the court or switch to a Chapter 13 Bankruptcy. The Means Test further explores your financial situation, history and current

Oct 26

You probably have spent some time researching different bankruptcy attorneys and their informational websites — and you probably keep coming across information about this new Bankruptcy reform: the Bankruptcy Abuse Prevention and Consumer Protection (BAPCA).

In 2005, Congress passed and President George W. Bush signed the reform, making this the most significant overhaul to bankruptcy laws and filings since the original bankruptcy code was enacted in 1978. The new law and provisions adds further stipulations and can be complicated, making an individual seeking relief through a Chapter 7 or Chapter 13 bankruptcy filing more difficult. However, if filing bankruptcy is the only option for you, there are ways to still qualify for either a Chapter 7 or Chapter 13 bankruptcy — and you can soon begin your fresh, second start on life.

New Credit Counseling requirements before filing Chapter 7 or Chapter 13 Bankruptcies

Both Chapter 7 and Chapter 13 Bankruptcy filings now requires the debtor to complete a Credit Counseling Program with an agency approved by the U.S. Trustee’s offices. The primary goal of these sessions is to determine if it’s really necessary for the individual to pursue filing for Bankruptcy in the first place.

While the filer must attend counseling, it is not necessary to follow the counselor’s advice or proposed plans. Before filing, however, any proposed payment plan must be submitted to the court, along with a certificate that the counseling has been completed.

Upon completion of the bankruptcy filing, the debtor must attend an additional counseling session in personal finance management before the court discharges the debts.

BAPCA Parts II and III will be posted shortly …

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