Bankruptcy
At Christenson & Fiederlein, PC we represent individuals who are in need of bankruptcy protection or need a "fresh start" from their creditors. This can be accomplished by the filing of a Chapter 7 (Liquidation) or 13 (Re-payment Plan). The issues regarding whether you should file a Chapter 7, 13 or no bankruptcy at all will be discussed with you after we have had the opportunity to review your financial information.
“We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”
Chapter 7 Debtors
Also known as "Fresh Start" or "Straight" bankruptcy, Chapter 7 bankruptcy allows a person to eliminate most or all of his debt while being allowed to keep whatever property he may have. In many cases, a person may keep their home or car (secured debt), provided that they continue to make current payments and are up to date on the loan.
Chapter 7 eliminates:
- Credit Card debts
- Medical debts
- Personal loan debts
- Lawsuit debts
- Judgments - Unless fraud or criminal related
- Deficiency debts on repoed autos and foreclosures
- Some IRS Debts - many income tax debts are dischargeable.
- Personal Injury Debts - except driving while intoxicated and criminal injury.
Chapter 7 is the most commonly filed bankruptcy and can allow for a new start. More and more Americans find themselves struggling with debt they cannot control. Chapter 7 bankruptcy allows for their debt to be discharged and lets them get a hold of their financial situation with a fresh start. Chapter 7 does not eliminate student loans except extreme hardship cases, debts from certain types of taxes, alimony maintenance or support payments, fines, penalties and criminal restitutions, or debts from personal injuries caused by driving while intoxicated.
Chapter 13 Debtors
Chapter 13 bankruptcy allows a person to consolidate the debt while making convenient monthly payments to a trustee. A payment plan is proposed which repays the debt over a three to five year period. The amount of the monthly payment and the length of the repayment plan is based upon the following factors:
- Monthly income of the person
- Monthly expenses of the person
- Amount and nature of the debt
The most common uses of Chapter 13 involve:
- Repayment of mortgage arrears (back amounts owed) home
- Restructuring of auto loans to save a vehicle
Creditors
Secured debts are paid 100% on the dollar, while unsecured debts may be paid less than 100% on the dollar. A person receives a discharge under Chapter 13 once the payment plan is completed.
At Christenson & Fiederlein, PC, attorneys represent creditors in protecting their debts and loan obligations. This can be accomplished through many different legal maneuvers, including the filing of proofs of claim, objections to a debtor’s exemptions, and/or the determination of dischargeability of certain debts.
This can be accomplished by filing motions to lift the automatic stay to proceed with collection remedies in state court or to pursue on a security, and/or by filing of an adversary case proceeding requesting that certain debts be declared non-dischargeable from the bankruptcy.
Examples of Creditors Claims:
- Michigan Builder Trust Fund Defense: The Michigan Builders Trust Fund Act MLA 570.151 et. seq. imposes a trust on sums paid to a building contractor for the benefit of laborers, subcontractors, and material suppliers engaged to work on a construction project. You may have a claim that your debt is non-dischargeable for the builder's violation of this trust fund act.
- Real Estate owners may want to collect lease rentals and/or property.
- Object to the exemptions claimed by the debtor.
- Objecting to the debtor's general discharge.
- Objection to discharge of debt because of false representations, actual fraud and/or misrepresentation.
Note: This list is not meant to be exclusive and many defenses exist in the law.