Here is a sample letter. You will find the proper address on the back of your mortgage statement. This letter is written from a lawyer’s perspective and would require an authorization and release. If you send it yourself, you would not not need a separate authorization and release. You (and your co-borrower – typically your…
All posts by Mike Shovan
How can a property settlement agreement in a divorce affect your Bankruptcy in Michigan?
Although domestic support obligations and property settlements are non-dischargeable in Chapter 7, property settlement debts are dischargeable in Chapter 13. Settlement agreement language can help determine how a judgment or property settlement will be viewed by a bankruptcy court. Settlement agreements should include a provision contemplating potential bankruptcy by either party. Support provisions and integration…
Is the Till interest rate universally applicable to all Chapter 13 Bankruptcies in Michigan?
In Horny (E.D. Mich 2011), Judge Ludington ruled that not all contract interest rates can be crammed down to the Till rate. Ludington held that the Till rate of cramming or reducing interest in a secured obligation is not a universal rule. Ludington followed the Till holding – maintaining that an interest rate may be…
Assets acquired before you file for Bankruptcy in Michigan do not have to be included in a Chapter 13 Plan.
In Mobley (Bank. E.D. Mich. 2011), the court held that a fully exempted pre-petition personal injury award cannot be included as part of the disposable monthly income (DMI) calculation. The Mobley court maintained that a Chapter 13 repayment plan is exclusively related to paying creditors out of future income or earnings. A Chapter 13 proceeding…
Uncertain or unliquidated personal injury awards do not have to be included as disposable monthly income (DMI) in a Chapter 13 bankruptcy proceeding in Michigan?
The Court in Connor (E.D. Mich. 2012) recently addressed the issue and concluded that prospective amounts do not have to be included in a DMI analysis in filing a bankruptcy in Michigan. Typically, disposable monthly income (DMI) includes all the know or certain income as of the date of confirmation of a Chapter 13 plan….
Important Bankruptcy Cases before the US Supreme Court
Here is a summary of the important Bankruptcy Cases before the US Supreme Court: In re Puffer, No. 11-1831 (1st Cir.) Issue: Whether chapter 13 fee-only plan is necessarily bad faith under 1325(a)(3) & (7) Argued: January 10, 2012 Jed Berliner had the opportunity to present his argument to Justice Souter who was on the…
What happens if you get a Form 1099 A or 1099 C from your mortgage lender?
The Mortgage Forgiveness Debt Relief Act of 2007 has been extended through 2012. This Act allows homeowners to exclude income from the discharge of debt on their principal residence. Despite this Act, your lender may still send you a Form 1099 A or a Form 1099 C. This form must be addressed – otherwise the…