Where Do I Go To File My Petition?
Assuming you’re making plans for personal bankruptcy, you’ve already likely got much to consider. The good thing about bankruptcy is that it gives you a fresh start, and compared to other options, is a really good way of getting one’s money situation under control again. Yet, your bankruptcy petition can eat up a lot of your energy and time. Whether it ’s organizing every one of your written documents, making certain they find themselves in the right hands by certain dates, or coming to the required credit counseling session, you might end up doing a decent amount of running around.
After your counseling session and once you have your personal financial documents ready to go, it isn’t always obvious where to start. Several application sheets and forms are required, all of which are accessible and can be ordered online. You will also want to come with your filing fee available; for Chapter 7, this is $299, and then for Chapter 13, $274. These figures each cover the added administrative fee and are susceptible to change. Based upon your monetary constraints, this might be settled in installments, but make sure you double-check before planning on that to be the case. While it is possible to submit the necessary forms all on your own, it’s helpful to enlist the support of a qualified bankruptcy attorney. Nothing else can happen in your bankruptcy before every required document is filed correctly, and thus it’s crucial to ensure that it’s all in order.
Depending on where you reside, your Chapter 7 or 13 petition can be submitted at one of several courtroom and clerks’ offices. Chapter 7 will require an inventory of valuable assets, and for Chapter 13 you’ll need a payment schedule already planned out. When filing, the usual necessities apply: you should definitely have your valid state ID and Social Security number.
The region in which you file is required to be where you have resided or conducted business for at least 6 months (180 days). If you reside in the Western District, one can find court buildings in Grand Rapids (One Division Avenue, N.); Marquette (202 West Washington St., 3rd floor); Kalamazoo (410 West Michigan); Lansing (315 West Allegan) and Traverse City (Logan Place West, 3249 Racquet Club Drive). Federal government buildings and local trustee’s offices, in which your 341 (or creditor’s) meeting would be held, also are situated nearby in those regions. The office is open between 8:30 AM and 4:00 PM each day, besides the weekends and legal holidays.
If you need to file in the Eastern District, bankruptcy courts can be found in Flint (226 West Second Street), Detroit (211 West Fort Street) and Bay City (111 First Street). 341 meetings for residents from the regions occur in the same office buildings, except for in Bay City where the 341 site is right down the block from the main court building. The clerk’s office is open Mon – Fri., 8:00am to 4:00pm, again excluding Saturdays, Sundays and our annual holidays.
Bankruptcy could be the ideal opportunity to rearrange your credit and money affairs, and could help you correct the habits that could have added to financial problems in the past. Although the information and mass of the paperwork could seem daunting to you, a bankruptcy lawyer will easily comprehend them, and could be a vital resource when it comes to coordinating and processing your bankruptcy. Structure your bankruptcy thoroughly prior to when you file – as long as it’s submitted and carried out competently, it’s your first big step in the right direction of a better financial future.
Do I Really Need Credit Counseling Before Bankruptcy?
Yes.
If you’re thinking about filing for personal bankruptcy, it’s important to know ahead of time what you’ll need to file properly. In 2005, many modifications were made to U.S. bankruptcy guidelines, and some of these may have an effect on how and which Chapter you choose to file. Just one of the biggest differences concentrates on pre-filing obligations, which now call for finishing a credit guidance program.
At some point in the 180 days (six months) leading up to filing, a debtor has to locate a government-approved company offering the right credit counseling program. This needs to be an agency located in your judicial district, the same area in which you will file for bankruptcy. The counseling session typically costs around fifty dollars, depending on the services offered; for people who cannot afford it, one could request a free counseling session from the institution before the counseling session takes place.
Even though this requirement may sound overwhelming, it generally lasts within an hour and a half, and might be accomplished via phone, on the web or at the credit counseling office. The whole course usually consists of a detailed look at your present economic condition, and a discussion about whether or not personal bankruptcy is the best choice for you at this time. It also helps to think of the counseling as a resource, instead of a chore. A reasonable budget can be devised at this time with the help of the credit counselor. This may be convenient later on as the initial outline of your monthly payment program, and help you to stay on track.
What, exactly, will you need to be ready for the counseling course? You might want to have pay stubs, a record or estimate of regular bills and valuable assets, and a recent and comprehensive outline of all (both secured and unsecured) debts owed. Having these documents prepared prior to the appointment will be a big help. You’ll also want to take time when selecting a counseling agency, as they can range in skills, certification status and accessible programs and services.
Once you’ve participated in the course, you need to receive a certificate of completion. This is going to be filed along with your petition; without the inclusion of the certificate, which is provided by the U.S. Trustee, your case will be dismissed. Check with the Trustee’s office or your area bankruptcy clerk’s office to locate an accredited, trustworthy, and supportive consumer credit counseling organization.
Commonly Asked Questions About Bankruptcy In Michigan
What Exactly Is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy, often known as a straight bankruptcy, is a liquidation proceeding. The debtor hands over all non-exempt assets to the bankruptcy trustee who then converts it to cash for distribution to the collectors. The consumer will get a discharge of all dischargeable financial obligations generally within four months. In the majority of cases the consumer has no assets that he would lose so Chapter 7 will provide that him / her a relatively quick “fresh start”.
One of the most important functions of Bankruptcy Law is to allow an individual, who is hopelessly mired with debt, a clean start by wiping out his / her debts.
Men and women who file for chapter 7 bankruptcy must agree to go to credit counseling. After declaring chapter 7 bankruptcy, it may be tough to obtain credit for a few years, and you will not be able to file for personal bankruptcy again for a set period of time.
It has become more challenging to file for chapter 7 bankruptcy in the United states, thanks to laws which substantially tightened the bankruptcy policies in the early 2000s. It is wise to consult a legal professional and an accountant prior to investing in a bankruptcy filing, because even though the professional fees for the assessment may be high, there may be an option that has not been thought about. A professional consultation can also smooth the way to move forward with bankruptcy filings, if a debtor decides to carry on with bankruptcy proceedings.
What Is Chapter 13 Bankruptcy?
Chapter 13 Bankruptcy is commonly recognized as a reorganization bankruptcy. Chapter 13 bankruptcy is filed by individuals who would like to pay off their financial obligations over a period of three to 5 years. This type of bankruptcy appeals to individuals who have non-exempt assets that they want to retain. It is also only an alternative for individuals who have predictable earnings and whose income is sufficient to pay their reasonable expenditures with some sum left over to pay down their financial obligations.
Notice re Chapter 13 Tax Refunds
Prior to January 20, 2010 confirmation orders from the bankruptcy court that required turnover of a debtor’s tax refunds to the Trustee, needed a provision ordering the IRS to pay those refunds directly to the Trustee.
On January 20, 2010, the United States District Court for the Eastern District of Michigan entered an order that prohibited the enforcement of such provisions. United States v. Carroll , __ B.R.__, 2010 WL 338040 (E.D.Mich. 2010).
Notice has been given that in cases in which an order confirming the plan has not yet been entered and in which the debtor’s plan provides for the payment of tax refunds to the trustee, the debtor shall sign, as requested by the trustee, (1) any appropriate IRS forms that authorize the IRS to forward the debtor’s tax refunds directly to the trustee, whether by check or direct deposit, and, (2) any appropriate form that will authorize the trustee to endorse, negotiate and deposit the debtor’s tax refund check for the debtor’s chapter 13 account.
You can read the court’s full notice here.
Ardelean & Dunne Helps Client’s Pay Creditors On Their Terms
Type: Chapter 13 Reorganization
Payment Terms: $400 per month for 36 months
Facts: Client was paying credit cards at $800 per month. It would have taken 10 years to pay off all debt at the rate client was paying. In Chapter 13 bankruptcy, client paid only $400 per month, repaying 25% of total debt, and all amounts not paid off after 3 years were eliminated! Plus, client’s creditors paid our fees in the bankruptcy!
Lesson: We are experienced at using federal law to stop high interest rates and late fees to allow you relief. Call us today to learn more. You do NOT need to scrape by paying creditors slowly. We can get you out of debt quickly and effectively.
Ardelean & Dunne, PLLC Saves Family Home
Type: Chapter 13 Reorganization
Payment Terms: $1700 per month for 60 months
Facts: Client fell behind on his mortgage due to loss of income. When his job returned to normal hours we were able to file a Chapter 13 to repay his mortgage arrears just days before his house was to be foreclosed on. We saved the family’s home!
Lesson: We can stop foreclosures and repossessions using federal law. If you have a foreclosure or repossession pending, give us a call. We have proven results and will work for you!
Ardelean & Dunne Help Ch. 13 Client Repay Credit Cards At 0% Interest!
Type: Chapter 13 Reorganization
Payment Terms: $800 per month for 48 months
Facts: Client was paying credit cards $800 per month and getting no where. It would have taken our client 20 years to pay the debt in full with credit card interest. In a simple Chapter 13 filing, we shut off the interest and let our client pay back 100% of the credit card debt in just 4 years!!
Lesson: We use federal law to stop credit card interest and late fees. If you are interested in repaying your debts on your own terms, give us a call. We have proven results and will work for you!
Chapter 13 (Reorganization)
In a chapter 13 case you file a “plan” showing how you will pay off some of your past-due and current debts over three to five years. The most important thing about a chapter 13 case is that it will allow you to keep valuable property–especially your home and car–which might otherwise be lost, if you can make the payments which the bankruptcy law requires to be made to your creditors. In most cases, these payments will be at least as much as your regular monthly payments on your mortgage or car loan, with some extra payment to get caught up on the amount you have fallen behind.
You should consider filing a Chapter 13 Plan if you:
• Own your home and are in danger of losing it because of money problems;
• Are behind on debt payments, but can catch up if given some time;
• Have valuable property which is not exempt, but you can afford to pay creditors from your income over time.
You will need to have enough income during your chapter 13 case to pay for your necessities and to keep up with the required payments as they come due.