The Bankruptcy Petition Coversheet 

In the Eastern District of Michigan Local Bankruptcy Rule 1002-1(B) provides that a petition filed for bankruptcy shall be accompanied by a completed “Bankruptcy Petition Coversheet” available on the courts website. 

BK Coversheet

This Bankruptcy coversheet has to be signed by both you and your attorney and it has you list all companion cases that you have.  A companion case is any prior bankruptcies that you, your spouse or your business partner have been involved in.  The number one reason for the court having you complete this coversheets is the in the Eastern District of Michigan they have a policy of assigning your case to the same judge, or the preceding judge that handled your prior case.  The concept is that if the prior judge is familiar with your prior preceding, he or she might be best suited to handle your next bankruptcy matter.

The Bankruptcy Petition Coversheet also has you check several boxes and fill out several blanks if your bankruptcy you are filing is a Chapter 13.  These blanks involve you disclosing what your prior Chapter 13 Attorneys fees were, and also involve you certifying if you are eligible to receive a discharge in your Chapter 13 matter, or if you are filing your Chapter 13 bankruptcy to just reorganize with our requesting a discharge of your debts. 

Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy.

The Bankruptcy Petition in Detroit

So you have decided to file bankruptcy.  You have decided to hire an attorney to fill out the “Bankruptcy Petition” for you and represent you throughout the bankruptcy process. Your attorney should fill out every form that is necessary for your file for the bankruptcy petition; however, below is the most common forms that need to be filled out in each bankruptcy case.  Together, they are the “Bankruptcy Petition” that is filed with the court.

The Bankruptcy Petition Includes:

• The Bankruptcy Petition Cover Sheet
• The Bankruptcy Petition (B1 Official Form 1 with Exhibits A – D.)
  • Exhibit A
  • Exhibit B
  • Exhibit C
  • Exhibit D
• Schedule A – Real Property
• Schedule B – Personal Property
• Schedule C – Property Claimed as Exempt
• Schedule D – Creditors Holding Secured Claims
• Schedule E – Creditors Holding Unsecured Priority Claims
• Schedule F – Creditors Holding Unsecured Nonpriority Caims
• Schedule G – Executory Contracts and Unexpired Leases
• Schedule H – Codebtors
• Schedule I – Current Income of Individuals Debtors
• Schedule J – Current Expenditures of Individual Debtors
• Summary of Schedules
• Statistical Summary of Certain Liabilities and Related Data
• Declaration Concerning Debtor’s Schedules
• Statement of Financial Affairs
• Certification of Notice to Consumer Debtors Under Section 342(b) of the Bankruptcy Code
• Statement of Attorney for Debtor(s) Pursuant to F.R.Bankr.P.2016(b)
• Verification of Creditors Matrix
• Means Test (Form 22A or 22C)
• Statement of Social Security Number
• Chapter 13 Plan (In Chapter 13 cases only)
• Form 23

The most important rule when filling out any of these forms with your attorney is to fill the forms out completely and truthfully.  As you can see there are a lot of forms and when they are all complete the “Bankruptcy Petition” is a picture of your entire financial situation.  Your petition is how you prove to the bankruptcy court that you truly are in need of the financial relief of a bankruptcy discharge.

Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy.

Giving to church and filing Chapter 13 Bankruptcy

Happy Easter!  On this religious day I figured I would post about religious giving in bankruptcy.  Specifically, about giving to your local church and filing Chapter 13 Bankruptcy in Detroit.  I can not count the number of people who have came into my office that their number one concern about filing bankruptcy is whether or not they are going to be able to continue to tithe each week.  In short answer, yes.

In a Chapter 13 bankruptcy, we have to make a budget of your average monthly income and average monthly expenses that are reasonable and necessary for you and your family.  In Detroit, the Chapter 13 Trustee’s and the Chapter 13 Judges have consistently let families continue to tithe at the rate they have been giving in the past.  We are able to budget this monthly tithing in your budget and it will in turn decrease the amount of your Chapter 13 payment is each month to your creditors.

Now this does not mean that you can suddenly decide to start giving, or suddenly decide to increase your giving level prior to filing bankruptcy.  The bankruptcy process of allowing you to contribute to your church is an option if have been giving in the past. 

I have budgeted up to 10 percent for a family that had the records to prove they have been giving 10 percent for their entire life.  We simply provided the bankruptcy trustee with a print out from my clients church showing her contributions over the past two years and the Trustee approved the expense.

In short, if you’re having issues making your normal living expenses a lot of people immediately stop giving to church.  However, sometimes the best answer is to meet with me and stop paying your credit cards so you can continue to contribute to your house of worship.

Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy.

Median Income for Michigan Changing April 1, 2013

Come April 1, 2013, the Median Income for Michigan used for bankruptcy eligibility will be changing once again.  The Median Income last changed November 1, 2012. The Median income figures are used in figuring out the first part of the “Means Test” that is required when figuring out if you are eligible for Chapter 7 Bankruptcy, or for figuring out in Chapter 13 Bankruptcy if you will be required to commit to a 36, or a 60 month repayment plan.

Michigan Median Income Figures:

Family Size

*Plus 8,100 for each person over 4

Chapter 7 – Median Income

In a Chapter 7 Bankruptcy, the Median Income figure is used to see if you pass the first part of the Means Test.  For example, a single guy making $60,000 per year would not pass the Median Income portion of the Means Test and would most likely have to file a Chapter 13 Bankruptcy.  Whereas, a family of four people making $60,000 per year would most likely pass the Means Test and be eligible for a Chapter 7 Bankruptcy.

Chapter 13 – Median Income

In a Chapter 13 Bankruptcy, the Median Income figure is used to determine your commitment period to the bankruptcy.  For example, a single guy making $60,000 per year would have a commitment period of 60 months if he was to file a Chapter 13 Bankruptcy.  Whereas, a family of four people making $60,000 per year would have a commitment period of 36 months if they were to file a Chapter 13 Bankruptcy.

Impact of the New Median Income Figures

The impact of the new Median Income figures is that less people will now be eligible to file Chapter 7 bankruptcy then prior to April 1, 2013. For people looking to do a Chapter 13 Bankruptcy, less people will be eligible for a shorter 36 month, over the longer 60 month commitment period.  The biggest change is the Median Income for a family of three which is increasing to $61,725, a $1,251 increase.  What this means is that individuals in Michigan are making slightly more money than they were six months ago.

Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy.

Repaying debts and not filing bankruptcy

Bankruptcy is not for everyone.  Yes, you heard me, I am a bankruptcy attorney and I am telling you that not everyone needs to file for bankruptcy.  Each week I meet with at least one person where I will flat out tell them that bankruptcy is not for them, or perhaps there are other options available to them.

So let’s say you’re not going to file bankruptcy?  How can you yourself repay you debts?  Here is my advice:

• Mortgage, rent, car payments all need to be made first.  These are the most important financial obligations you have.  I know if you are one day late on your visa payment they are going to be calling you and your mortgage company will give you 30 days before they call.  It does not matter, pay your mortgage first!
• Next, stay current on your tax obligations, utilities, and essential financial obligations.  It’s not going to do you any good to get your electric service turned off in order to pay a credit card, stay current on these obligations to avoid late fees and other penalties that you cannot afford.
• Now that your house, car, taxes, and utilities are all current, you can start paying your other unsecured debts, credit cards, student loans, and medical bills.  You will see that this group of debt is last on my list because is needs to be last on your list to pay as well.  I see so many people that are current on everything except their first mortgage because their mortgage payment is their highest payment. When in theory this should be the first bill you are paying. 

Now obviously this advice only will work if you can afford to make all of you financial obligations.  This very well may be advice that I give to someone who may have fallen behind on some bills due to a job loss and now is back to working and I feel that they are going to be able to catch everything up without my help.  If you curious about your situation I offer a no obligation consultation where I will review you financial situation to see what path I think is best for you.  Sometimes that path is bankruptcy; sometimes that path is listed right above, you taking care of your own financial matters on your own. 

Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy.

Phoenix Law to sponsor Livonia Chamber event with new US Congressman to be held at School Craft College on March 27.

Congressman Kerry Bentivolio was newly sworn in as a member of the U.S. House of Representatives on Jan. 3, 2013. Bentivolio says his top priority is to fight for common-sense solutions in Washington and provide superb constituent services to the people of Southeast Michigan.

Bentivolio, a Michigan native, background includes military service, business, automotive design, real estate, political activism, education, and community involvement. After high school, Kerry enlisted into the U.S. Army, serving as an infantry rifleman in Vietnam. Upon his honorable discharge, he attended Oakland Community College. He then transferred from OCC to Michigan State University and later earned a Bachelor of Arts from St. Mary’s College and a Master of Education from Marygrove College.

For more than 20 years, Bentivolio proudly served with the Michigan Army National Guard where he worked to protect and defend the U.S. He served with the military police on the home front during Desert Storm and in Iraq in 2007, at age 56, with an Artillery Unit in an administrative capacity. Kerry was medically evacuated from Iraq after suffering a neck injury and retired.

At the Livonia Chamber’s Wake-Up Livonia program on March 27, Bentivolio will talk about his initiatives to support small business and answer your questions on other issues.  

Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy, and Foreclosure Prevention.

Yesterday, I was sitting at a Bankruptcy 341 meeting with my clients in Detroit watching a hearing prior to our case being called.  We got a real show, an individual that obviously was not prepared by his attorney on how the bankruptcy and 341 process goes.   This individual sat down at the table, his face was red and he was obviously mad that he was even there.  Now don’t get me wrong, no one wants to be at bankruptcy court; however, your bankruptcy hearing which is usually a quick five minute hearing is basically the last step you have to take in becoming debt free.

As the hearing with this individual progressed, it was obvious that he was simply not listening to the questions the Trustee was asking him.  The Trustee who was beginning to also become flustered with this individual finally asked what seemed like a simple yes or no question.  “Have you destroyed any of the books and papers of your business?”  The individual continuing his uncooperative nature answered that question “I have the last seven years of books and papers for the business.”  The Trustee then again asked the individual to listen to his question, and again asked “Have you destroyed any books and papers of the business?”  Again, the individual responded “I have the last seven years.”   The Trustee and the individual then went back in forth for several moments before the individual disclosed that he has recently discarded all paperwork that was over seven years old.

As the hearing progressed further the combativeness continued and the Trustee eventually pointed out on the record that the individual was not listening to the questions, not providing him with correct answers, and “not scoring any points with the way he was acting.”  To even my surprise, the individual responded to the Trustee that he did not realize that this was a game that he was trying to score points for.

Now, thankfully I have never had a client act this rude at a hearing before.  Perhaps it is because I sit down with each of my clients prior to the hearing and go over with them what is going to happen:

• The first thing that is going to happen is both you and me are going to sit down at the table, you will be sworn in where you will promise that you will tell the truth.
• Next, I put my appearance on the record and I will ask you to verify your bankruptcy petition signatures where you will testify that you read and reviewed the bankruptcy paperwork prior to it being filed with the court and the information contained in your bankruptcy paperwork is truthful and accurate. 
• Finally, the Trustee and any of your creditors will have the opportunity to ask you questions regarding the information that is in your bankruptcy paperwork.  You have a duty to cooperate with the Trustee and answer the questions truthfully.

Now simply by following this most of my bankruptcy hearings last less than five minutes.  Whereas the hearing for the above individual went over twenty minuets and will mostly be drawn out in a further hearing under section 2004 of the Bankruptcy Code.  Worse, if this individual continues his combative nature he may not even receive his bankruptcy discharge, the entire purpose for him even being there in the first place.    You see Section 521 (a) (3) of the bankruptcy code require debtors to “cooperate with the trustee as necessary to enable the trustee to perform the trustee’s duties under this title.” If you as a debtor do not cooperate with the Trustee, the trustee may ask the bankruptcy court to deny the relief you are seeking, specifically to deny your bankruptcy discharge.  Simply put bankruptcy is not a game, and if you treat it as such you will come out on the losing end. 

Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy

Image Credit to: garlandcannon

So you have filed bankruptcy.  Here is a list of Most Common Questions After Filing Your Case:

What happens next in my case?

1)  You will receive a notice from the court and our office regarding your 341 Meeting of Creditors and/or Confirmation Hearing (Confirmation Hearing is for Chapter 13’s only.)

2)  Complete your Debtor’s Education Course, before the 341 meeting, one week prior to your 341 Meeting.  Instructions to take this course will be with the 341 notice mailed to you next week.

3)  Attend your 341 Meeting of Creditors and/or Confirmation Hearing and make sure you:

• Arrive on time. (15 min early at the latest!)
• Bring your Social Security card.
• Bring your state identification card.

I am keeping my home or car.  What do I need to do?

If you filed Chapter 7, you will have to handle payment directly with your lender; do not fall behind if you’re planning on keeping a car or your home.  If you filed a Chapter 13 you will need to continue the payments that are listed as “Direct by debtor” in your plan, again, do not fall behind!

• Lenders will not allow you to continue paying online or by telephone while you’re in Bankruptcy.  Make sure your have the address to send your monthly payments during bankruptcy, make sure you mail your payment with enough time for them to arrive timely!
• In a Chapter 7, most lenders will require you to “reaffirm” your vehicle in order to keep it.  They will provide a reaffirmation agreement/contract for you to sign.

I do not understand the Trustee’s questions.  What was the purpose of them?

The 341 Meeting (Meeting of the Creditors) is the Trustee’s chance to examine the petition you filed with the Court and compare it to your oral answers on the record.

Why am I getting all of this paperwork in the mail?

Do not worry about any mail you receive from the Court, trustees, or creditors.

• If we need any information from you, we will contact you.
• If there is anything you need to do, we will contact you.

You do not need to inform us of documents you receive from the Trustee or the Court.  We receive a copy of all correspondence from the Trustee, the Court, and all of your creditors related to your case.  We want to do an excellent job for you, but please keep in mind that numerous phone calls actually slow us down from helping you.

Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy.

2012 FEDERAL TAX REFUNDS 

It’s tax time and time to remind you of the number one reason most Chapter 13 cases are dismissed without discharge.  The number one reason is because of the failure to submit Federal Tax Returns and Federal Refunds to the Chapter 13 Trustee.  Per your Chapter 13 Plan, you are required to submit your Federal Tax Return and any Federal Refund you receive to your Chapter 13 Trustee.  Even if you do not receive a Federal Refund, you must submit your Federal Tax Return to the Chapter 13 Trustee.   

Please see below for the addresses of the Chapter 13 Trustees that service the Detroit area.  If you have any questions or do not remember who your Chapter 13 Trustee is please contact our office.   Our goal is to make sure all of our cases get to discharge, including yours!

IF YOUR TRUSTEE IS KRISPEN S. CARROLL

Please mail a copy of your Federal Tax Return to:

      Krispen S. Carroll

      719 Griswold

      1100 Chrysler House

      Detroit, MI 48226

 Please mail your Federal refund to:

      Krispen S. Carroll

      PO Box 2018

      Memphis, TN 38108-2018

Make your payment payable to Krispen S. Carroll.  Make sure to write your Case No. and 2012 Federal Tax Refund on your payment.

IF YOUR TRUSTEE IS DAVID WM RUSKIN

Please mail a copy of your Federal Tax Return to:

      David Wm Ruskin

      1100 Travelers Tower

      26555 Evergreen Road

      Southfield, MI 48076-4251

 Please mail your Federal refund to:

      David Wm Ruskin

      1593 Reliable Parkway

      Chicago, Illinois 60686-0015

Make your payment payable to David Wm Ruskin.  Make sure to write your Case No. and 2012 Federal Tax Refund on your payment.

IF YOUR TRUSTEE IS TAMMY L. TERRY

Please mail a copy of your Federal Tax Return to:

      Chapter 13 Trustee-TLT

      535 Griswold

      Suite 2100

      Southfield, Mi 48076

 Please mail your Federal refund to:

      Chapter 13 Trustee-TLT

      PO Box 2039

      Memphis, Tennessee 38101-2039

Make your payment payable to Chapter 13 Trustee-TLT.  Make sure to write your Case No. and 2012 Federal Tax Refund on your payment.

IF YOUR TRUSTEE IS CARL L. BEKOFSKE

Please mail a copy of your Federal Tax Return to:

      Chapter 13 Trustee – Flint

      400 N. Saginaw Street, Suite 331

      Flint, MI 48502

Please mail your Federal refund to:

      Chapter 13 Trustee – Flint

      PO Box 2175

      Memphis, TN 38101-2175

Make your payment payable to Chapter 13 Trustee – Flint.  Make sure to write your Case No. and 2012 Federal Tax Refund on your payment.

 Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy.