Livonia Michigan Bankruptcy - Michigan Bankruptcy Blog

Livonia Michigan Bankruptcy

Michigan Bankruptcy Blog

Archive for August, 2012

Beware of the Sheriff Sale Realtors after you have filed Bankruptcy!

Posted by Peter Behrmann, Esq. On August 28th

Beware of the Sheriff Sale Realtors after you have filed Bankruptcy!

 

This is becoming more and more of an issue, so I am writing to share this issue with you.  If you have filed for Bankruptcy, specifically Chapter 7 Bankruptcy in Metro Detroit and made the decision to “Surrender Your Home” you need to continue reading.

 

When you filed Chapter 7 Bankruptcy all of your property including your surrendered home became property of the bankruptcy estate.  This means that the home you no longer want is property of your Chapter 7 Bankruptcy estate.  Property of your bankruptcy estate is controlled by your Chapter 7 Bankruptcy Trustee.  For 99% of my clients this is not an issue, they can simply stay in the home until the bank forecloses by way of a Sheriff Sale.  Then they still remain in the home for the 6 months redemption period following the Sheriff Sale. 

 

At the Sheriff Sale the bank has two options, they can either bid the amount you owe on the home or they can bid fair market value.  If the bank bids what you owe on the home, you will most likely be left alone from the Sheriff Sale Realtors due to the bank bidding more than your home is worth.  In this scenario you should be able to remain in your home for the remaining 6 months and then leave your property.

 

Now there is the bidding fair market value approach.  In this scenario, the bank bids what they think is fair market value; however what the Bankruptcy Trustees and realtors have been learning is that the bank has a bad habit at severely undervaluing their properties.  I have seen banks bid anywhere from $20,000 to $150,000 less then what your property is worth.  If this happens to you, you will know.  Sheriff Sale Realtors will begin showing up at your home 24/7 trying to convince you to list your home for sale with them.  I have seen realtors pay people to leave their home and turn over the keys to them.  All of these realtors will promise you thousands of dollars and you may think that this is too good to be true. 

 

Well it is too good to be true.  Remember you filed Chapter 7 Bankruptcy and all of your property (including your home you are surrendering) is property of the bankruptcy estate.  You do not have the right to sell, transfer, or cut a deal with any Sheriff Sale Realtor.  You need to meet with your bankruptcy attorney to discuss your options.  The good news is you most likely have exemptions available to help protect the new equity now in your home.  I have had clients in this very situation receive a check for over $10,000 for working with their Bankruptcy Trustee.     

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.

Police Officer Bankruptcy

Posted by Peter Behrmann, Esq. On August 16th

Police Officer Bankruptcy

 

It has been all over the news, from Detroit to Northville cites in metro Detroit are having a tough time balancing their budgets.  In most municipalities, the police department is one of, if not the largest single budget items, and everyone’s budget is being cut.     In the past several months, I have personally seen more police officers coming through my doors than ever before. 

 

Some cites, such of Inkster, have cut their number of police officers in half.  Some cites, such of Pontiac, have completely eliminated their police department.  Almost all cites are requiring their officers to pay more into their health care and are limiting the availability of overtime to their officers.  In Detroit, all of their police officers are now being subjected to a 10% pay cut.

 

For many police officers, they were just making their bills before these changes took effect.  Now with decreased overtime, more expensive healthcare, and in some cases lower pay there is simply not enough money to pay their bills.  If you are a police officer in a same or similar situation that I just described please give me a call. I have helped dozens of police officers over the years in same or similar situations.  I will work with you to develop a plan to get you out of debt, back in control of your finances in the quickest easiest way possible. 

 

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.

Photo Credit: Freefotouk

“Z” is for Zone – Bankruptcy Court Zones

Posted by Peter Behrmann, Esq. On August 8th

“Z” if for Zone – Bankruptcy Court Zones

 

After I file a bankruptcy for someone I spend a few moments answering any last questions they have and then let my clients know about their upcoming Section 341 Court Hearing.  Their next question is usually, why do I have to go to Detroit, Flint, etc.?  Well here is your answer.

 

Your bankruptcy is filed in the Federal Bankruptcy Court for the Eastern District of Michigan.  The Bankruptcy Court for the Eastern District of Michigan has four locations for Section 341 Court Hearings.

  • The Detroit Bankruptcy Court has its meetings at 211 West Fort Street, Suite 315 Detroit, Michigan 48226:

 

    • The Detroit location covers all cases filed in Jackson*, Lenawee*, Macomb, Monroe*, Oakland, St. Clair, Sanilac, Washtenaw*, and Wayne counties.

 

  • * The Ann Arbor Hearing Room has meetings at the U.S. District Court of Ann Arbor 200 E. Liberty Street Ann Arbor, MI 48108:

 

    • The Ann Arbor Hearing Room covers Chapter 7 Hearings only for Parts of Jackson, Lenawee, Monroe and Washtenaw counties.  All other hearings or 341 hearings for Chapter 13 cases are held in Detroit. 

 

  • The Flint Bankruptcy Court has its meetings at 600 Church Street Room G-19 Flint, Michigan 48502:

 

    • The Flint location covers all cases filed in Genesee, Lapeer, Livingston, and Shiawassee counties. 

 

  • The Bay City Bankruptcy Court has its meetings at 101 First Street Bay City, Suite 103 Michigan 48708:

 

    • The Bay City location Coverers all cases filed in Alcona, Alpena, Arenac, Bay, Cheboygan, Clare, Crawford, Gladwin, Gratiot, Huron, Iosco, Isabella, Midland, Montmorency, Ogemaw, Oscoda, Otsego, Presque Isle, Roscommon, Saginaw, and Tuscola counties. 

 

There you have it.  Where your Bankruptcy hearing is held is determined by what county you live in.  Also, in the Ann Arbor and Jackson area what Chapter of Bankruptcy you are filing also helps make the decision where your hearing will be held.

 

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.

Photo Credit: Myrone Delacruz’s

Other Bankruptcy Attorneys Blogging on the Letter “Z”:

  • Zero – Jacksonville Bankruptcy Attorney, J. Dinkins G. Grange, Esquire
  • Zillion – Bay Area Bankruptcy Lawyer Cathy Moran
  • Zany – Wisconsin Bankruptcy Lawyer, Bret Nason
  • Zero – Neighbor Island Bankruptcy Attorney, Stuart Ing
  • Zero Percent Plan – Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell
  • Zero Plan Payment – Cleveland Bankruptcy Attorney Bill Balena
  • Zombie – New York City bankruptcy attorney Jay S. Fleischman
  • ZZZZZZZZ – Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein

“Y” is for Years between Bankruptcy Filings

Posted by Peter Behrmann, Esq. On August 6th

“Y” is for Years between Bankruptcy Filings

First things first, 90% of our clients have never filed bankruptcy before.  However, if you have filed bankruptcy in the past it is very important that you understand the years required between Chapter 7 and Chapter 13 bankruptcies.

The first issue to understand is the reason there are limits on the number of times you can file bankruptcy and receive a discharge. The most basic reason is to prevent people from taking advantage of the bankruptcy process.  Bankruptcy is a powerful tool that has helped countless people in times of financial stress, but it is not to be taken advantage of and having time limits in place prevent abuse of the bankruptcy process.

If you have previously filed a Chapter 7 Bankruptcy and wish to file a second Chapter 7 Bankruptcy there must be 8 years between the date you filed your first Chapter 7 to the date of your second filing.   One of the most common misconceptions is that the time frame is 6 or 7 years.  The time frame was extended to 8 years with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. 

If you have previously filed a Chapter 7 Bankruptcy and wish to file a second Chapter 13 Bankruptcy there must be 4 years between the date you filed your first Chapter 7 to the date of your second filing.  

If you have previously filed a Chapter 13 Bankruptcy and wish to file a second Chapter 13 Bankruptcy there must be 2 years between the date you filed your first Chapter 13 to the date of your second filing.   In theory, this time frame will almost never be a factor because most Chapter 13s take longer than 2 years to complete.

If you have previously filed a Chapter 13 Bankruptcy and wish to file a second Chapter 7 Bankruptcy there must be 6 years between the date you filed your first Chapter 7 to the date of your second filing under most circumstances. 

 

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.

Photo Credit: Leo Reynolds

 

Other Bankruptcy Attorneys Blogging on the Letter “Y”: