Redmond, Redmond & Yokom
Attorneys at Law
480 West Lovell
Kalamazoo, Michigan 49007
Toll Free: 888 573-0114
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Debt Relief (Bankruptcy)
What is Chapter 7 Bankruptcy?
Chapter 7 releases a debtor from all of his or her dischargeable debts and orders the creditors not to attempt to collect money from the debtor.
What is Chapter 7 Bankruptcy?
What is Chapter 13 Bankruptcy?
Chapter 13 cases give the debtor 3 to 5 years to re-pay all or part of their debt. While the debtor is in Chapter 13, no attempt can be made to collect from the debtor. Chapter 13 also allows the debtor to catch up past due house or car payments over 3 to 5 years and stops foreclosures and repossessions.
Will Chapter 7 Ruin My Credit Rating?
Remember, there is a difference between your credit and your finances. By eliminating your old debt, bankruptcy can repair your finances. And if you have good finances, good credit will follow. If you are considering Chapter 7, your credit rating is most likely very poor. Some financial institutions solicit business from people who recently filed Chapter 7, most likely because it will be at least eight years before they can file bankruptcy again. If there are reasons, such as medical problems, illness or injury, some credit rating agencies may take this into account in rating the debtors credit after a bankruptcy filing.
What debts are dischargeable and non-dischargeable in Chapter 7 Bankruptcy?
Most consumer debt including medical bills, credit cards, or debts that have gone to collection or court judgment are dischargeable. Non-dischargeable debts include debts such as tax liability, child support, debts for fraud or embezzlement, student loans, debts for alimony, maintenance or support and debts for certain fines and penalties.
Are the names of persons who file Chapter 7 published?
When a Chapter 7 case is filed, it becomes public record. However, newspapers do not publish names of people who file bankruptcy under Chapter 7 or Chapter 13.
Should we file Chapter 7 or 13?
Chapter 13 is usually better for debtors who want to:
- Pay back all or part of their debt.
- Have property which would be lost in a Chapter 7.
- They are not eligible for a Chapter 7 either because their income is too high.
- They have previously filed for Chapter 7.
- Have a pending foreclosure and want time to catch up on house payments.
Should I be embarrassed about filing bankruptcy?
That answer is no. Bankruptcy has been designed as a safety net to protect you and your family. The United States Supreme Court some years ago said that one of the primary functions of the Bankruptcy Act is to relieve the honest debtor from the weight of his indebtedness and permit him to start afresh. Bankruptcy is not designed for the individual's interest but rather in the interest of society as a whole.
How do I choose an attorney to represent me in bankruptcy?
Debtors should select an attorney whose practice is primarily bankruptcy. To avoid additional fees, debtors should select an attorney whose office is located close to the bankruptcy court. When calling for an appointment with the bankruptcy attorney, debtors should ask whether they will be meeting with an attorney or with a staff member. It is important that the debtor meets with an attorney to discuss bankruptcy.
Does a person lose all of his/her property by filing bankruptcy?
Usually not. In most cases, debtors can keep all of their property. In Chapter 7, the house and car payments must be current if the debtor wishes to keep the property. In Chapter 13, the house and cars and other secured debts need not be current in order to keep the property.
Does bankruptcy stop all collection activity?
Filing of the bankruptcy case virtually stops all collection activity including garnishments, lawsuits, and any state court proceeding. At the time of filing a bankruptcy, a protective order goes into effect. Any effort made to collect a debt after your bankruptcy filing, is a violation of this order. Any creditor who intentionally violates the automatic stay order may be held in contempt of court and may be liable to the debtor for damages.
Do I have to go to court?
The debtor usually attends one hearing called a Meeting of Creditors. This hearing usually takes place about a month after your case is filed. At this hearing, the debtor is put under oath and questioned about his or her debts and assets by the trustee. In most bankruptcy cases, no creditors appear at the hearing.
What is a trustee and what is the debtors responsibility to the trustee?
The trustee is an officer of the court appointed to examine the debtor at the time of the hearing and to collect any non-exempt property, pay expenses of the estate and claims of creditors. The law requires the debtor to cooperate fully with the trustee. This includes providing any documents requested by the trustee. If the debtor fails to cooperate with the trustee, the trustee may then request that the debtor's chapter 7 or 13 be dismissed.
Please contact our offices for any other questions you may have.
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