The answer is no. If you use your credit card(s) to purchase Christmas presents or other holiday gifts you risk not being able to discharge that debt. If the credit card company finds out that you used the card without intending to repay the debt, the credit card company can object to the discharge of that debt. The credit card company will argue that you defrauded them and that the debt should not be discharged. If you have any questions about Bankruptcy in Michigan, call the law office of Michael J Shovan PLC (“Bay Area Bankruptcy Clinic”) right now at (877) 233-9389 and speak to an attorney who can answer your questions. Michael J Shovan PLC is a debt relief agency and we help people…
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What happens to my credit rating if I file for bankruptcy in Michigan?
If you are thinking about filing for bankruptcy in Michigan, there is a good chance that your credit rating is already bad and getting worse. The only way to stop the slide from bad to worse is to file for bankruptcy. Once you file for bankruptcy, your credit report is wiped clean and reset. And even though your bankruptcy is reported for 10 years, late payments, unpaid debts and high balances are removed. Instead of the derogatory remarks, these accounts will show “included in Chapter 7 bankruptcy” or “included in Chapter 13 wage earner plan.” This notation is not as harmful as the derogatory comments. In addition to getting a clean slate, your debt-to-income ratio is reduced and your credit score will increase. Within 3…
Can I exclude a “credit card” from my creditor schedule when I file for bankruptcy in Michigan?
Under the bankruptcy law, you are required under penalty of perjury to list all of your debts. If you fail to list all of your creditors and the related debts, your case can get dismissed. Here is the solution: If you owe less than $600 on the card, you are allowed to pay it off prior to your filing and avoid listing the debt or the creditor – you don’t owe them any money so you don’t have to list them. But, once you file chances are good that the credit card company will cancel the account anyway. With this in mind, it doesn’t make a lot of sense to use your scarce money to pay off that card. In any event, after your case…
If I file for bankruptcy in Michigan, do I have to appear in Court?
If you file for bankruptcy in Michigan, you probably will never enter a court room. The overwhelming majority of bankruptcy filers never enter the court room. Your bankruptcy case is filed with the US Bankruptcy Court but the case is reviewed by a Trustee that is assigned to your case. You will have to appear for what is know as a 341 hearing or the first meeting of your creditors. The Trustee conducts this hearing and it is tape recorded. You are sworn in and then asked some really basic questions: name, address, birthdate, last 4 number of your SSN. Then the Trustee reviews your petitition and schedules and asks you if the information that you provided is complete and accurate. If one of your…
Do I have to give up my house and all of my other property and assets if I file for Bankruptcy in Michigan?
The short answer is NO! The Bankruptcy law provides that a debtor filing for bankruptcy can keep certain assets for a “fresh start” by exempting property from the bankruptcy estate. See my related post titled “What are the bankruptcy exemptions.” If you have any questions about Bankruptcy in Michigan, call the law office of Michael J Shovan PLC right now at (877) 233-9389 and speak to an attorney who can answer your questions. Michael J Shovan PLC is a debt relief agency and we help people file for bankruptcy under the laws of the United States Constitution, Article 1, Section 8. This post is for informational purposes only and is not intended to constitute legal advice. Any relationship with this firm will be established by a…
What is a “no asset” Chapter 7 bankruptcy in Michigan?
The vast majority of bankruptcy cases are “no asset” cases. In this type of case, you don’t have any property above and beyond that property or other assets that is considered exempt. See my article on exemptions which tells you exactly what property you get to keep for your new life. If you have any questions about Bankruptcy in Michigan, call the law office of Michael J Shovan PLC right now at (877) 233-9389 and speak to an attorney who can answer your questions. Michael J Shovan PLC is a debt relief agency and we help people file for bankruptcy under the laws of the United States Constitution, Article 1, Section 8. This post is for informational purposes only and is not intended to constitute…
What are the bankruptcy exemptions?
The bankruptcy law exempts certain property and other assets from your creditors. In other words, you are allowed to keep certain things to provide for your “fresh start.” Here is the list of exemptions: Homestead: Real property, including mobile homes and co-ops, or burial plots up to $20,200. Unused portion of homestead, up to $10,125, may be used for other property. Personal Property: Motor vehicle up to $3,225. Animals, crops, clothing, appliances and furnishings, books, household goods, and musical instruments up to $525 per item, and up to $10,775 total. Jewelry up to $1,350. $1,075 of any property, and unused portion of homestead up to $10,125. Health aids. Wrongful death recovery for person you depended upon. Personal injury recovery up to $20,200 except for pain…