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Wayne County Bankruptcy Law Blog

What can be exempted in a Chapter 7 bankruptcy?

Though the Great Recession may have come and gone, many Americans, including those in Michigan, still find themselves struggling with debt. Those who struggle with debt may have trouble sleeping at night and focusing at work and family functions because of the stress caused by financial strain. Though it may seem scary, these individuals should take comfort knowing that they may be able to find debt relief in the form of Chapter 7 bankruptcy.

This type of bankruptcy is also known as liquidation bankruptcy because an individual liquidates, or sells, his or her assets in order to satisfy his or her debts. This might conjure images of an individual left without a shirt on his or her back, but federal bankruptcy laws allow individuals to exempt certain types of property under Chapter 7 bankruptcy, allowing them the opportunity to carry on after bankruptcy and find the stability they need.

Chapter 13 bankruptcy applicants may seek legal help

In today's age, it is not uncommon for Wayne County residents to face financial difficulties. However, those burdened with significant amounts of debt should take comfort knowing that they are not alone. Many Americans struggle with unforeseen medical expenses, the sudden loss of a job and reliance on credit cards. Regardless of how an individual becomes indebted, he or she should be sure to check out all the legal options available to him or her so that he or she can work towards claiming a fresh financial start.

Last week we discussed Chapter 13 bankruptcy and how it can be beneficial for those from Michigan. Though the bankruptcy process may sound relatively simple, it is actually complicated by a plethora of legal issues. Exemptions and filing requirements can be difficult to keep track of, but a seemingly minor slip-up in one of these areas could render you unable to file for bankruptcy, or it could wind up costing you significant amounts of money.

What are some of the requirements to file for Chapter 13?

Chapter 13 bankruptcy can be an option for Wayne County consumers who are looking to stop creditor harassment and prevent foreclosure. Under Chapter 13, consumers who qualify are allowed to make manageable payments over a period of three to five years. After the period is ended, all qualifying debts are discharged if the plan has been complied with in full.

Michigan woman files for bankruptcy after getting conned

There are any number of unexpected life changes that can spell financial trouble for Michigan consumers. Unemployment and medical expenses are two very common situations that can result in financial distress, but there are many more. One can be a little embarrassing, but it affects lots of people.

Sometimes people will loan money to friends or relatives as a favor, but are left in a tight spot if the borrower fails to repay the money. Occasionally, a friend or relative will tell lies in order to separate someone from their money. This unfortunate scenario played out in Michigan recently. 19 people were swindled by an unscrupulous ex-con.

Proactive homeowners may be able to prevent foreclosure

Although many economists say that the worst of the recession is behind us, financial challenges may still be dogging a lot of good people in Wayne, Michigan. When a person is facing medical debt, credit card debt and big mortgage payments each month despite a stagnant or lowered income, things can get out of hand quickly.

If a consumer falls behind on their mortgage payments, they may get scary letters from the mortgage lender. It is important that these communications not be simply ignored. There is a very real danger that a homeowner may end up losing their home.

Christian book store creditors to vote on Chapter 11 bankruptcy

Michigan residents may be aware that Family Christian Stores, a Christian gift and book store, is currently working through the Chapter 11 bankruptcy process. In this newest step, the company's creditors will elect on August 7 whether to approve a proposed Chapter 11 bankruptcy plan. This election would let Family Christian Stores' creditors vote on a plan, which must be approved by 51 percent of those voting in the election and 67 percent of the amount of money represented by each vote.

Navigating the process of Chapter 7 Bankruptcy

There is an undeniable level of stress that comes with a seemingly never-ending mountain of debt. Those who find themselves in such situations can often get overwhelmed by the debt in question and this can sometimes make the decision process of deciding how to escape the debt much more difficult. However, there are options that allow individuals to have a fresh financial start. One of these is Chapter 7 bankruptcy.

When an individual becomes buried under medical bills, credit card debt or various types of loans, Chapter 7 bankruptcy provides an immediate discharge of one's debts. These types of debts are known as "unsecured debts." Unsecured debts are not tied to any kind of psychical property such as a home or car. There are, however, some types of unsecured debts that may not be dischargeable under Chapter 7, including child support, taxes, student loans and others.

Learn about the means test for Chapter 7 bankruptcy

One of the more popular options for Michigan consumers seeking a fresh financial start is Chapter 7 bankruptcy. You may have heard that consumers wishing to file for Chapter 7 bankruptcy must pass a means test. What is the means test? This blog post provides some basic information on what the means test is and how it could affect your filing for Chapter 7.

The means test consists of two steps. The first step is a comparison of the consumer's income with the median income in the consumer's state. Specifically, the bankruptcy court computes the consumer's average monthly income during the six-month period before the Chapter 7 bankruptcy petition was filed. This figure is then compared with the median family income for the consumer's state of residence. If the median family income in Michigan is greater than or equal to the consumer's income, the consumer will be allowed to proceed to the second step of the means test.

What are the steps in a Chapter 13 bankruptcy?

Perhaps you are a Wayne County consumer who is struggling with debt and looking for possible solutions to your problem. Maybe you've read some of our blog posts and have decided that Chapter 13 bankruptcy might be a good option. How does a consumer file for Chapter 13 bankruptcy?

According to the U.S. Bankruptcy Code, the first thing a consumer must do is attend credit counseling. The idea is to determine whether a consumer will be able to repay their debts without filing for bankruptcy. With credit counseling, a consumer will provide their income, debt and expense information to an approved credit counseling agency. The agency will then propose a repayment plan.

How should you repay debt?

The economy has been rough on many Michigan residents for the past several years. Since the Great Recession began in 2008, many people have had to learn to live on less. For many, this has meant to during to credit cards to pay medical debt and everyday expenses. In some cases, this debt has become overwhelming leading to late payments, high interest and penalties. Some may be experiencing frequent, embarrassing or harassing calls from creditors trying to collect on these past-due bills.

If you are in this situation, you may be wondering -- how should I repay my debt? While this blog post cannot provide specific advice for a particular situation, people should know that debt relief options are often available to help people regain a handle on their debt.

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