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February 2015 Archives

One in 5 consumer credit reports affected by medical debts

As many Michigan residents are aware, in today's world, it can be difficult to avoid debt. With credit cards that offer ease of use and medical bills that can be impossibly expensive, debt is a reality that many Michigan residents have to face. Once mired in debt, it might seem like escape is all but impossible. However, for those stuck in a seemingly endless cycle of debt, there are options.

The Final Report of the ABI National Ethics Task Force Creating Second Class Legal Professionals

The formulation of local bankruptcy rules is rarely, if ever, a democratic process where the consumer bankruptcy attorney has a voice in its composition. Indeed, it is solely within the province of the local bankruptcy bench with the approval of the District Court that the rules become effective. Much credit must be given to the judges of the Bankruptcy Court of the Eastern District of Michigan who have opened up the process of changing the local bankruptcy rules to local practitioners. Under the guidance of the court they have formed subcommittees to recommend changes. Among these subcommittees has been the formulation of an Ethics Subcommittee. The local Ethics Subcommittee's preliminary recommendations have been highly influenced by the FINAL REPORT OF THE AMERICAN BANKRUPTCY INSTITUTE NATIONAL ETHICS TASK FORCE as it appears to be written whole cloth from the report. The report sets forth a particular bias against consumer bankruptcy attorney fueling the view inspired by BAPCPA that most consumer bankruptcy attorneys are more ethically challenged than other bankruptcy attorneys. It, therefore, fuels the view that consumer bankruptcy attorneys are second class legal professionals in need of particular attention, scrutiny and monitoring. The bias appears to stem from the limitation of the rule as it applies to only those attorneys who file Chapter 7 cases on behalf of individual debtors, whose debts are primarily consumer debts and thereby engage in limited representation. The Final Report of the ABI National Ethics Task Force creates the same limitation under the heading: Best Practices for Limited Services Representation in Consumer Bankruptcy Cases on page 49. The heading is misleading as it goes much further than a recommendation for best practices. It provides for a local rule to be drafted that would compel the local consumer bankruptcy attorney to provide a client a single contract for limited representation services (the Agreement and Consent to Limited Representation in Consumer Bankruptcy), and file the same with the court. The local Ethics Subcommittee emphasizes that the failure to follow any local rule will result in 9011 sanctions.

Retaining Your Income Tax Refund in a Chapter 13 Bankruptcy

The tax season is upon us when most Americans can expect a personal income tax refund. If you are presently in a chapter 13 bankruptcy, you may not be rejoicing at the expectation of receiving an income tax refund because your chapter 13 plan requires that you pay the income tax refund to your chapter 13 Trustee for payment to your creditors. If you are represented by the law firm of Charles J. Schneider, P.C., you would have been advised that the payment of the income tax refund would not necessarily reduce the length of your chapter 13 plan. Most chapter 13 plans propose to pay less than a 100% dividend to unsecured creditors, therefore, the payment would only increase the dividend to your unsecured creditors and not reduce the length of your plan. You are committed to pay both the sum confirmed as well as the sum paid for the length of the plan "whichever is greater". If you are a client of the law firm of Charles J. Schneider, P.C. you almost certainly were advised that a chapter 13 plan is modifiable. The payment of the income tax refund is one of the terms which may be and is quite often modified for extraordinary purposes.

Retail giant RadioShack files for Chapter 11

As some business owners can likely attest to, staying afloat can be challenging, especially in today's uncertain economy. In order to survive, companies must always be turning a profit. One bad business deal or mismanagement of finances can cause a company's profits to crash. When this happens, business bankruptcy may be the best option.

How do Chapter 7 and Chapter 13 bankruptcy differ?

Many Michigan residents likely have some idea of what bankruptcy entails. Most understand that bankruptcy is an option for those who need escape from a desperate financial situation. However, that is often where a person's understanding of bankruptcy ends. Sometimes, the many details involved in filing for bankruptcy can prove to be a mystery. One facet of bankruptcy that some Michigan residents may not be aware of is the difference between Chapter 7 and Chapter 13 bankruptcy.

Airline magazine file for bankruptcy protection

In order to be successful, businesses need to turn a profit. In some cases, businesses are profitable because they fill a void in a specific niche market. For these businesses, they thrive because they are doing something that no other businesses has been capable of doing. However, when other businesses move into the niche, it can be harder for the original business to compete.

  • rating

    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

  • rating

    Posted by ClientOctober 26, 2010

    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

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    Posted by MarleneJanuary 8, 2014

    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

  • Avvo Rating 10.0 superb | Top Attorney Bankruptcy
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  • Avvo Ratting 10.0 superb Top attorney chapter 7
  • Avvo clients' choice 2014 | chapter 7
  • ICLE CONTRIBUTOR
  • American board of certification | certified consumer bankruptcy specialist
  • AV lexisNexis Martindale-Hubbell Peer Review Rated for ethical standards and legal ability
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