Federal bankruptcy law prohibits a utility, from “altering, refusing, or discontinuing service to, or discriminating against, a trustee or a debtor solely on the grounds that the debtor had not paid its prepetition debts when due” after a customer has filed a petition for bankruptcy. Be aware – this prohibition only applies for a limited time. Further, it only applies to delinquencies accrued before the bankruptcy filing. This bar from cutting off services applies to any and all of the following service providers: water, electricity, gas, and phones – those services necessary to meet minimum standards of living. The prohibition against cutting off utility services in Section 366(a) of the Bankruptcy Code is conditioned on Section 366(b), which requires that the trustee or debtor furnish…
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Do both spouses need to file Chapter 7 or Chapter 13 Bankruptcy together?
There is no requirement that both spouses file jointly in either CHAPTER 7 or CHAPTER 13 BANKRUPTCY. Economically, it makes sense because the couple only has to file one case and pay one filing fee ($306 in CHAPTER 7 and $281 in CHAPTER 13). It all has to be evaluated on a case by case basis. That’s why it is so important to get good counsel. All of the bad debt may be in one spouses name – so we would file that spouse so that they could both benefit from the other’s good credit. I ran across a real strange situation recently where a client violated 2 of the 3 big no no’s in filing for bankruptcy. No no number 1 is to not…
Can I File Chapter 13 for my Corporation or LLC?
Unfortunately – you cannot. Only individuals can file for Chapter 13 Bankruptcy in Michigan. Corporations and LLC’s are considered separate legal entities and can’t use the bankruptcy laws that are designed for individuals. There are alternatives to filing for bankruptcy – call us and we will help you find a solution to your financial situation. Our State of the Art Computer system allows us to serve all of the Counties and Cities in the North East Michigan including: Saginaw (Saginaw, Frankenmuth, Chesaning, St. Charles, Hemlock, Shields, Freeland, Carrollton ); Bay (Bay City, Essexville, Auburn, Kawkawlin, Linwood, Pinconning, Standish); Midland (Midland, Sanford, Edenville, Wixom Lake); Gratiot (Ithaca, Alma, St. Louis, Breckenridge); . Isabella (Mount Pleasant, Shepherd, Coleman); Gladwin (Gladwin, Beaverton, Rhodes); .Clare (Clare, Farwell, Harrison); Roscommon…
Is Bankruptcy Confidential? Who will find out about my bankruptcy? I get this question a lot. My answer is that most people in your day to day life won’t know that you filed for bankruptcy unless you tell them. The only people that get notice of your bankruptcy filing are your creditors. If you don’t owe anybody money – they won’t get notice of your filing. And, most creditors are nationally based banks like Citicorp, Bank of America and HSBC. These big companies aren’t going to broadcast your situation – they don’t even send a repre
I get this question a lot. My answer is that most people in your day to day life won’t know that you filed for bankruptcy unless you tell them. The only people that get notice of your bankruptcy filing are your creditors. If you don’t owe anybody money – they won’t get notice of your filing. And, most creditors are nationally based banks like Citicorp, Bank of America and HSBC. These big companies aren’t going to broadcast your situation – they don’t even send a representative to your 341 hearing. When I get this question, I always ask clients if they have ever heard of PACER. Every one says no. PACER is the federal website where your bankruptcy filing will be listed – but nobody…
Do I have to pay rent during the redemption period on my foreclosed house?
No. There is no requirement for you to pay rent to you mortgage lender during the redemption period. You live rent free. So, in making budgeting for the future – set aside the money that would otherwise be used to pay your mortgage and build up a “next egg” so that you have money to money. Once the redemption period expires, your rights in your former house are terminated and you can be evicted. Any anticipated problems can be eliminated with simple budgeting and planning ahead. Our State of the Art Computer system allows us to serve all of the Counties and Cities in the North East Michigan including: Saginaw (Saginaw, Frankenmuth, Chesaning, St. Charles, Hemlock, Shields, Freeland, Carrollton ); Bay (Bay City, Essexville,…
How You Pick the Right Bankruptcy Lawyer for You?
Even as a lawyer, I have had the opportunity to hire lawyers. Some experiences were good – others were horrid. The first thing I check out is response time to returning my phone call or responding to an email or a text. Here’s where my 24 hour rule comes in to play – if I don’t get a response within 24 hours – that lawyer isn’t going to work for me. Watch out for the slickster that plays good until he or she gets their retainer. I had one big shooter out of Farmington Hills that was great until he got his hands on my $5,000 retainer – then he disappeared. I would have to call him, email him, fax him and then put up…
Shopping interest rates in making a car purchase in a Chapter 13.
It pays to work these car dealers over to get a good interest rate. The Chapter 13 Trustee will allow you to buy a new car but will not allow the dealer to screw you on the interest rate. Recently, a client got approval to buy a new car but the dealer insisted on 20% interest. We backed the dealer down to 6% – payments went from almost $600 down to $450 a month.