The primary difference between Chapter 7 bankruptcy and Chapter 13 is that under Chapter 13, the debtor(s) is required to make payments for the benefit of unsecured creditors during the term of the plan. The term of a plan or “applicable commitment period” ranges in time from 3 to 5 years. One factor in determining…
Bullock Court Clarifies the term: “Defalcation” in the Bankruptcy Context
In Bullok v Bankchampaign NA, the US Supreme Court clarified the term “defalcation” as that term is used in 11 USC 523(a)(4) which provides that a debt is not discharged “for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny.” Resolving a conflict among the Circuit Courts, the Bullock Court held that the…
US Bankruptcy Judge Opening
The Sixth Circuit Judicial Council is soliciting applications from persons interested in appointment as United States Bankruptcy Judge for the Eastern District of Michigan at Detroit. This position will become vacant upon the retirement of United States Bankruptcy Judge Steven W. Rhodes effective December 31, 2013.
New Median Income Data will be used beginning April 1, 2013
Effective April 1, 2013, new median income data will be used for Chapter 7 Bankruptcy and Chapter 13 Bankruptcy proceedings. Remember that means testing is based on household size. In Michigan, here is the new data: 1 – $45,029; 2 – $52,621; 3 – $61,715; 4 – $73,864* *For cases filed on or after April…
Michigan Periodic (Wage) Garishments are Extended to 182 Days!
The Michigan legislature changed the law on wage garnishments. Effective September 2012, a writ of garnishment for wages, salary, commissions or other earnings remains in effect for 182 days. Keep in mind that the Automatic Stay provision of both Chapter 7 and Chapter 13 Bankrtuptcy law, stops garnishments immediately upon filing the petition. And under…
What is a “Transfer” and how does it affect your “Chapter 7 Bankruptcy”?
With every initial consultation, I always ask about whether you transferred any interest in any property. What I am really trying to find out is whether or not your engaged in what is known as a “fraudulent transfer.” Under §548 of the Bankruptcy Code, a transfer is defined as any of the following: 1. The…
Must a Motion requesting an Order of Abandonment under Code § 554(b) be served on all creditors and will the Order be Revoked is Propert Service was not Given?
Yes. When a creditor or other interested party seeks an order from the court abandoning property from the bankruptcy estate under Code § 554(b), Bankruptcy Rule 6007(b) supplies the mechanism for the party to obtain that order. The rule provides that the party’s objective can be accomplished only by “fil[ing] and serv[ing] a motion requiring…