If you are behind on your real property taxes and in danger of forfeiting your house or on the brink of foreclosure, filing a Chapter 13 Bankruptcy may be the right solution for you. The Automatic Stay provisions of §362 will stop the foreclosure and the ability to cure any arrearage over the course of…
Archives for November 2012
What Happens to Utility Expenses that You Accrue After You File a Chapter 7 or a Chapter 13 Bankruptcy?
§366 of the Bankruptcy Code governs matters relating to Utility companies, like Consumers, Bay City Power & Light and DTE. Typically, the utility company will close out the Pre-Petition account and all charges that accrued prior to filing your bankruptcy will be included in that account. §366(a) provides the general rule that a utility may…
Chapter 13 Trustee Best Practice For Mortgage Arrearage Claims for Chapter 13 Bankruptcy in Michigan
Mortgage Servicers frequently inflate their pre petition arrearages, including interst and penalty charges, in Chapter 13 proceedings. The Mortgage Committee of the National Association of Chapter Thirteen Trustees (NACTT) recently released a Best Practices guideline for trustees and mortgage servicers. as follows: The NACTT Mortgage Committee is comprised of Chapter 13 trustees, mortgage servicers, mortgagees…
When is a Creditor entitle to a copy of your Income Tax Return when you file Bankruptcy in Michigan?
Under the provisions of Bankruptcy Code amendments of 2005, you are required to provide a copy of your tax return to any creditor who requests it. Section 521(e)(2) provides that you are required to provide any creditor a copy of your income tax return if you file for Bankruptcy in Michigan. But – timing of…
Student Loans: The Shattered Dream of Education in America
The Next Financial Crisis Is Upon Us For many, a college education is one very important part of achieving the American dream. Post-graduate degrees have traditionally lead to higher paying jobs and have allowed many of us to enjoy a higher standard of living. Over the course of the past 30 years, 37 Million Americans…
5th Circuit EXCLUDES Social Security Benefits from Income Calculation
In re Ragos, the Fifth Circuit Court of Appeals held that a Chapter 13 debtor’s Social Security income is not included in the debtor’s projected disposable income. Since Congress excluded Social Security income from “current monthly income” in Code § 101(10A) and “disposable income” in Code § 1325(b)(2), the court reasoned, it made little sense to circumvent that prohibition by…