Utility services—Public utilities, such as electric company, cannot refuse or cut off service because you have filed for bankruptcy.  However, the utility can require a deposit for future service and you do have to pay bills that arise after bankruptcy is filed.

Discrimination—An employer or government agency cannot discriminate against you because you have filed for bankruptcy. A side note, while Section 525 of the U.S. Bankruptcy Code prohibits discrimination against anyone solely on the basis of insolvency, employers have a right to selectively screen individuals before hiring them, and it is difficult to prove discrimination.

Driver’s license—If you lost your license solely because you couldn’t pay court-ordered damages caused in an accident, bankruptcy may allow you to get your license back.

If you are contemplating bankruptcy, contact us for more information and the expertise you need.

Federal law makes your Social Security benefits exempt from levy, garnishment, assignment by regular creditors, and from the trustee in bankruptcy.

(The federal government can withhold some part of Social Security payments for taxes, student loans, or support, however.)

That means that even a creditor with a judgment cannot intercept your Social Security payments nor can they take the money from you after it has been paid to you.  Once you file bankruptcy, you may still recieve Social Security payments. 

Other exemptions
In addition to the federal exemption for Social Security benefits, each state has law protecting certain assets from the individual’s creditors.  Most retirement plans, pensions, and 401(k) plans are also exempt from collection.  To find out which assest are exempt in your personal case, please call us at 877.334.3922 today.

The short answer to a court hearing is no. Bankruptcy does not affect any court hearing regarding child support in family court: setting it, collecting it, or enforcing an order about it.

If you are sued, with a request that you be held in contempt of court for failing to pay child support, the court may go forward with the hearing even if you file bankruptcy. Child support is considered to be a special obligation and not merely a debt. In contrast, any other litigation regarding settlement or collection of debts are stopped cold by bankruptcy.

The Bankruptcy Code attempts to protect the rights of children and former spouses to collect support.

Any support, whether it is called family support, alimony, or child support, is made non-dischargeable in bankruptcy by the Bankruptcy Code. The spouse who receives the support does not have to file any type of proofs of claims or objections to the Bankruptcy Court to enforce her (or his) rights to continue to receive support.

In most cases, once a debtor files for bankruptcy, all creditors must stop all actions to collect their debts. This block is called an “automatic stay.”  The automatic stay does not apply to the enforcement of the collection of child support or alimony.

These types of obligations have a super priority under the Bankruptcy Code.

With 2010 quickly approaching, many of you are resolving to do things differently in the new year. It’s always a good thing to examine our lives, evaluate our strengths and weaknesses, and set specific, measurable and realistic goals for the future.

If you are struggling with debt problems and would like to know more about how filing bankruptcy may be able to help, Chimko & Associates would be happy to offer you a FREE consultation.

FIrst,we’ll listen to you as you tell us about your current situation. Then we’ll ask you some simple questions regarding your income, expenses, assets and debts so that we can recommend the best option for your specific situation.

To schedule a FREE consultation, simply fill out the Contact Form, click on the “Submit” button, and we’ll get back with you as quickly as we can.

We also recommend that you click on this “Sample Bankruptcy Plan“  link and read the information there to give you an idea of how a bankruptcy may work for you. ]]> http://chimkolaw.com/blog/2009/12/new-years-resolutions-and-bankruptcy.html/feed 0 http://chimkolaw.com/blog/2009/11/michigan-senior-citizens-filing-bankruptcy.html http://chimkolaw.com/blog/2009/11/michigan-senior-citizens-filing-bankruptcy.html#comments Sat, 07 Nov 2009 16:34:35 +0000 admin http://chimkolaw.com/blog/?p=55 The economy in Michigan, increased healthcare costs and reduced medical benefits from a declining automotive industry, and the threat of foreclosure may cause senior citizens to consider Bankruptcy during their retirement years. Many senior citizens do not want to lean on thier children during these tough economic times – because their children are having financial problems too, in many cases.

Retired Michiganders on a fixed income may not want to take money from a retirement account to pay off large amounts of medical or credit card debt. Doing so can have long term effects as your nest egg will dwindle down and the money that you withdrawal will be taxed as income.

For seniors with pressing medical bills and credit card debt, it may make more sense to file for Bankruptcy in Michigan.  Bankruptcy has helped many people by giving them a fresh start to their new lives without the burden of overwhelming debt. Senior citizens may even be able to keep their homes during a bankruptcy filing.

Up to one million dollars in assets in IRAs and other qualified retirement accounts are exempt property when filing for bankruptcy. Exemptions or exempt property are part of what creditors are not entitled to take from you to satisfy a debt. Seniors can discharge their debts through bankruptcy while keeping their retirement income for basic living expenses.

This is increasingly important as the number of people who retire is increasing (automotive and non-automotive) and there is a concern that social security payments will  be reduced.

Many Michigan senior citizens have rapidly increasing credit card debt that has spiraled upwards in the last few years. Bankruptcy is available to seniors  and can not be overlooked for those about to retire or for improving the quality of life for those already in retirement.

Many people filing for bankruptcy have experienced unexpected  financial shock, such as that caused by sudden events such as job loss, business failure, death, divorce or illness.

Filing for bankruptcy can be the right answer. If you are facing serious financial challenges, it is very important to seek the counsel of an experienced bankruptcy attorney.

Credit Counseling Requirement in Bankruptcy
In 2005, Congress passed and the president signed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), a bankruptcy reform law. One of the new requirements BAPCPA imposes on a new bankruptcy debtor is to receive credit counseling from an approved credit counseling agency before the bankruptcy filing. Chimko  and Associates are attorneys experienced in consumer credit and bankruptcy law and we can help educate debtors about these new counseling requirements.

 Please call us today and get started on that “Fresh Start” – whether it is filing for bankruptcy or taking the steps to get your credit in order.

For homeowners with second mortgages, if the value of your home has declined to less than the total value of your first mortgage, the second mortgage has, in effect, become an unsecured loan.

When filing a Michigan Chapter 13 bankruptcy, which is a repayment plan, the bankruptcy filers usually pay 100% of secured mortgage debts only. If the second mortgage is entirely unsecured, it can be “stripped” of its lien on the property and pay only the same percentage amount as all other unsecured debts, which is usually a smaller percentage than a secured debt.

Treatment of unsecured debts varies from individual Chapter 13 bankruptcy plan depending upon the bankruptcy filer’s income, debts and allowable expenses. 

However, unsecured debts may be paid even as little as 10% or even just 1% under the right circumstances. Which is based of the bankruptcy filer’s income throughout the course of a Chapter 13 bankruptcy plan, and discharged of remaining liability upon completion of the plan of debt reorganization.

How a second mortgage is stripped varies from the Eastern and Western District of Michigan, and from courtroom to courtroom in procedure, but not in the end result. Some judges will allow the second mortgage to be stripped in the Chapter 13 bankruptcy plan itself. Some require the value of home to be proved or disproved at an adversary proceeding. The most important determining factor remains, however, what the value of your home is at the time of filing for a Michigan Chapter 13 bankruptcy.

Sometimes, however, bankruptcy is not the answer. The best solution may be to have your bankruptcy attorney negotiate directly with your creditors, for a reduced amount, a debt consolidation or repayment plan you can live with.

Call Chimko and Associates today to find out more on how this affects you.

It’s tough to talk about – but there are many professional bankruptcy consultants and lawyers that will not judge you, will understand your difficulties and suggest the right plan for you and your family.

You need guidance to make sure that whatever financial choices you make are right for you, your kids and your spouse, and that the choices you decide on are made with accurate, impartial and balanced advice from a bankruptcy attorney or consultant.

Why would you consider hiring a lawyer and not doing this yourself? Because it is difficult to get through the slew of information out there and determine is bull and what is true.

When you pick a bankruptcy or credit lawyer, you want someone whose law practice has a high enough concentration of bankruptcy cases to be knowledgeable about the changes in the laws in Michigan. Only a bankruptcy attorney who is licensed in Michigan can give you the correct legal advice.

An experienced consumer bankruptcy attorney has a lot developed a tremendous amount of resources and knowledge over the years. Many options are available to a consumer that is considering bankruptcy and it is essential that you are presented those options in a clear and definitive manner by an experienced lawyer.

Way too often, credit professionals and counselors who offer “debt management programs” are focused on paying debts, but that is not necessarily the right or best option for you, the client. You need a lawyer that will meet with you in person and study the specifics of your case in order to recommend a solid plan for your particular situation. That recommendation may not always be bankruptcy.

If it is bankruptcy, then the next step is to make sure that you get the correct advice during bankruptcy process so it goes as smoothly as possible and there are no surprises. It is also important to note that the bankruptcy lawyer that you are dealing with needs to explain to you WHY he or she is recommending a particular plan of action!

You should speak to an attorney who is licensed in Michigan to practice law, and is experienced with bankruptcy – CLICK HERE to fill out a short information form.

Top Ten Reasons to call Chimko & Associates to help you with tough choices:

1. Creditors are calling you day and night.
2. You are tired of unwanted telephone calls and harassing mail.
3. You have frozen bank accounts.
4. Your car is being repossessed.
5. Bad credit is haunting you.
6. You are facing eviction, lawsuits or repossession of your property.
7. You have a sub 500 FICO score.
8. You are behind in your house payments.
9. You are currently in foreclosure.
10. Your property is in probate.

We can help you!

Never satisfied to follow the traditional rules of legal practice, our bankruptcy law firm is guided by the principle that each legal matter calls for the right combination of creativity, innovation, and commitment. It is the belief in this concept, coupled with an equally strong respect for integrity and professionalism, which has guided the attorneys at
Chimko & Associates in the practice of law.

Chimko & Associates prides itself on delivering large firm expertise and experience with the personal touch and service that is characteristic of a smaller, more efficient firm. The reputation our attorneys have developed as effective litigators is unsurpassed, and the firm focuses on providing practical solutions tailored to each client’s needs.