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The Law Office of Brett Border
Border Law PLLC specializes in Chapter 7, Chapter 11, and Chapter 13 Bankruptcy
Border Law PLLC specializes in Chapter 7, Chapter 11, and Chapter 13 Bankruptcy

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What is the Role of a Bankruptcy Trustee? | Southfield MI

Bankruptcy is a work no one wants to think about, but it does happen. When it does, it’s helpful to know what you’re getting into. There are different bankruptcy chapters you can file under depending on why you’re filing, your type of business, if you’re filing as a business at all, and several other factors. Filing for bankruptcy is a way of maximizing a debtors remaining asset to owed parties and giving the debtor a chance to start again with a clean slate. If you file Chapter 7, you are not obligated to follow a court-assigned repayment plan but you’ll likely lose much of your property. If you’re a larger company and/or want to keep your property in exchange for a longer repayment period, Chapter 13 is the best option.

In various cases of bankruptcy, what is the role of a bankruptcy trustee in the process?

In short, the trustee is appointed by the court to oversee the liquidation and re-purposing of assets.

With any luck, you will never have to deal with a bankruptcy situation. But if you have to file for it, it’s best to go in with as much working knowledge of the process as possible. Remember, the point of filing for bankruptcy is to get yourself out of debt, liquidate assets, and give yourself a chance at starting again. It’s a scary prospect and a complicated process, but it’s intended to help.

Chapter 7

Chapter 7 is designed for consumers with limited income resources to help pay off various debts. Under Chapter 7, all your property will be subject to liquidation in order to pay off debts. While some pieces of property can be exempt from liquidation, chances are most of what you own will be put towards generating revenue towards debts. During this process, a trustee will be appointed by the court to oversee the liquidation process, determine what is and isn’t eligible for liquidation, and be the point person on the recoup of revenue.

Chapter 13

Chapter 13 filing involves a larger company and the installment of a payment plan over a course of several years to pay back assets owed. This is a longer, larger process, and will be monitored for longer. In general, the repayment period is anywhere from 3 to 5 years, during which time the trustee will be involved. In this process, the trustee, in addition to performing general house cleaning duties of providing and ensuring the filing of documents, the trustee will also assess the repayment plans, collect payments, and ensure it is redistributed to the appropriate parties. It’s not too different from their role in Chapter 7 but involves a lot more moving parts and for a longer period.

Related Questions

Is It Better to File Chapter 7 or Chapter 13?

Your personal circumstances will dictate what is right for you. In order to file for Chapter 7 you’ll have to be below a certain ceiling of income as it’s designed for those who don’t have enough income to pay of their debt. If you make below a certain amount, then that might be for you. But if you make too much to qualify for Chapter 7, the benefit of Chapter 13 is that you don’t have to sell your possessions. The tradeoff is, of course, that the process is longer. Ultimately, it will be up to your circumstances.

What is the Threshold for Chapter 7?

Income limits are going to vary by state. Over 95% of debtors who filed for Chapter 7 had their debts paid off, at the expense of their personal belongings of course. When looking at your eligibility for Chapter 7, all income and debt will be taken into consideration when determining eligibility. But generally speaking you must make below the mean income of the state in order to qualify. So, before filing, check the mean income of your state and compare it to your own.

Debt is stress inducing and has ruined lives. Bankruptcy is scary, but it’s designed to help you. It’s not something to be ashamed of and not something to be scared of. Knowing what you’re entitled to and what you’re going to get yourself into is half the battle and can be done before you even file. Don’t go in blind.

How Can I Get Help?

An experienced and knowledgeable bankruptcy attorney can help make the bankruptcy process go smoothly and make it less stressful. The bankruptcy attorneys at Border Law in Southfield, MI are trusted, compassionate and can help you find the right debt solution for your situation.

We are a full-service Bankruptcy Firm that specializes in Chapter 7, Chapter 11, and Chapter 13. Our goal is to use our 15 years of knowledge and expertise to provide a stress free and smooth experience for the individual or business facing bankruptcy. We can pave the way for debt relief and help clients get the fresh start they deserve.
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Key Benefits of Chapter 7 Bankruptcy

When it comes to your finances, leave it to the professionals. If you’re reading this, chances are you are drowning in debt and looking for a fresh start. Contacting a bankruptcy lawyer to file a chapter 7 bankruptcy is the first step. A lawyer will know the ins and outs, keeping your best interests in mind. Knowing how bankruptcy will help you.

What are some benefits of Chapter 7 bankruptcy?

There are several key benefits to a chapter 7 bankruptcy as opposed to a chapter 13 bankruptcy, but it’s important to let a professional get you out with a completely clean slate. Continue reading to learn what the key benefits of a chapter 7 bankruptcy are, and why you should file.

Perhaps the most important reason to file a chapter 7 bankruptcy is it offers a fresh start that no other case can offer. Almost all debts are discharged, less student loans, alimony, and child support to name a few. Discharged means the debtor does not have to follow a repayment plan, their credit score will receive a fresh start as well and begin to rise, and they will qualify for loans again. A complete fresh start also means there is no debt limit. If you are like any of the other thousands of Americans struggling with financial debt, doesn’t that sound like new hope? We thought so.

In addition to getting all your debt discharged, with a chapter 7 bankruptcy, it also happens quickly. Typically, after a debtor files bankruptcy, the court orders a discharge within 60 to 90 days. After this happens, the case is considered closed. Suffering from financial debt can make days seem like years, so a fast process is exactly what you’ll want.

Lastly, a chapter 7 bankruptcy secures your future; future income. Typically, any property gained after filing for a chapter 7 bankruptcy is not acquired by the case. However, there are a few exceptions including inherited property, death benefits, or the proceeds from a life insurance policy.

The benefit of filing a chapter 7 bankruptcy is almost like it happens once and it’s gone forever. Your credit score does take a hit, but one that has the opportunity of improving again. Since there is no repayment plan, once the case is closed, you actually feel debt free as opposed to paying on a repayment plan. If you trust in the right lawyers, the process can also happen quickly. Your new financial freedom is closer than you think.

Seeking counsel from and experienced and knowledgeable bankruptcy attorney is the first step to debt relief. The bankruptcy attorneys at Border Law are your one-stop source for personal or business bankruptcy services. With over 15 years’ experience in all types of bankruptcy cases, Border Law provides comprehensive legal services offering the best financial solutions for your case. The experts at our bankruptcy Law Firm based in Southfield, MI work efficiently and effectively to resolve your debt concerns with professionalism, privacy and confidentiality. Call Border Law today for a Free Case Evaluation!
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Can I Keep my Car in Bankruptcy?

Filing for bankruptcy is, in effect, making a public declaration that you are unable to repay debts. It is legally imposed and opens a door of opportunity for creditors to file a claim on your assets to cover the total cost of the debts incurred by you. If approved, a trustee will be appointed by the court to discharge the service of liquidating non-exempt assets that you may own. One asset that is non-exempt is your car.

Can I keep my car if I file for bankruptcy?

Depending on the state you live in and the type of bankruptcy you file keeping your car may be an option. You will be required by law, once you have filed for bankruptcy, to disclose all assets. Non-exempt items include anything not necessary for you to live and work. These include any investments such as stocks, bonds and policies. Additional properties, jewelry and clothing that can fetch a pretty penny. Your car is typically not exempt from this process. It depends on the model and equity of your vehicle. The trustee appointed to your case is the one that would make the final decision regarding any property you have listed on your disclosure form, including your car. Here are a few options:

1. If you can find a way to come up with the money to cover the cost of your vehicle, you can approach the trustee and offer to buy back your car and use the cash to cover your debt in place of it. It rests solely upon the trustee appointed to decide if they would allow you to utilize this option.

2. You can alternatively broker an exchange where you trade an exempted item or items of equal value for your non-exempt vehicle. In such an instance, the trustee may allow you to keep your car and use the money from the sale of the traded item to repay your debt.

3. If you have equity in your car that does not exceed the state’s limit or if the value of your car is less than what you owe, keeping it is a possibility.

4. If you have not yet filed for bankruptcy, or don’t plan to, it may be a better option to sell your assets yourself to ensure you retain control over your vehicle.

It is possible to keep your car after filing for bankruptcy, but circumstances differ from one case to another. If you are drowning in debt, seeking bankruptcy, and keeping your car is a priority, it is important to speak with an experienced bankruptcy attorney.

The bankruptcy attorneys at Border Law Southfield MI special in Chapter 7, Chapter 11, and Chapter 13 bankruptcy. As a trusted consumer debt law firm with over 15 years’ experience, Border Law has helped their clients get the fresh financial start they deserve. Call us today for a Free Case Evaluation and to learn more about your debt relief options!
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What are the Main Reasons for Bankruptcy?

When in severe financial debt, most legal systems have a provision in place whereby an individual can seek relief. As a last resort, such persons can declare personal bankruptcy. This is a court-imposed status when it is a clear indication that someone is unable to repay debtors and or creditors. Financial debt can happen to anyone quickly and there are a number of factors that can contribute to a person becoming bankrupt.

Below is a list of the 3 most common reasons for bankruptcy and can happen to anyone.

Medical bills, unemployment, and credit card debt are three main reasons that can lead to bankruptcy. Medical Bills As an adult, especially for those who have a family, health insurance is a necessity. Even with this provision in place, a number of persons continue to struggle when it comes to paying their medical bills. Studies have shown that over the years an increasing number of bankruptcy filings have occurred due to a medical emergency that unexpectedly pushed some into a state of personal debt. Statistics show for persons under the age of 65 an alarming 20%, insured or not, will incur medical debt and out of that number at least 60% will file for bankruptcy. This number continues to climb annually.

Unemployment Due to changes in the economy the cost of living continues to rise. Bills continue to increase and opportunities for work continue to decrease. Companies and small business owners have not been exempt from this changing tide. Many businesses have been forced to close their doors and as a result, a great number of persons have lost their jobs due to cuts and layoffs. This has plunged many into a state of personal bankruptcy. Downsizing and pay cuts are also a factor.

Credit Card Debt Credit card debt may seem like a luxury of the spendthrift but with the increase of natural disasters many have utilized this avenue to get their lives back on track and as a result have ranked up a massive amount of credit debt. Credit cards are often used in times of emergency for big ticket items or financial emergencies. Although they can be a quick fix, keeping up on the payments can become a burden, especially if you are not used to making them or adjusting your lifestyle and budget.

Personal bankruptcy is not the end but rather a beginning. It is a clean slate and an opportunity to recover financially. The filing will remain on your credit report for quite some time but with the right action plan and measures put in place it is possible to recover and flourish after enduring a state of bankruptcy.

The bankruptcy attorneys at Border Law Southfield MI can help. With over 15 years’ experience in all debt relief matters, our knowledge and expertise can alleviate the stress individuals face when filing for personal bankruptcy. As a full-service Bankruptcy Firm, we specialize in Chapter 7, Chapter 11, and Chapter 13. We can help you pave the way for a brighter, secure financial future. Call us today for a Free Case Evaluation!
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What is Chapter 13 Bankruptcy and Is it for You?

Chapter 13 Bankruptcy is an adjustment of debt or money owed to creditors through a repayment plan.

This form of bankruptcy is also known as a “wage earner’s plan.” This plan permits a person who has a stable income to come up with a way to feasibly repay their debts. A chapter 13 bankruptcy offers the person in debt to make payments to their creditors over a period of three to five years to pay off balances due.

Seeking sound advice from an experienced and knowledgeable bankruptcy attorney can help you navigate the process and safeguard your interests.
Advantages of a Chapter 13 Bankruptcy
One of the biggest advantages of a Chapter 13 bankruptcy is that it gives debtors the chance to protect their home from any pending foreclosure action. As opposed to the chapter 7 bankruptcy which offers liquidation of all assets. A person can halt any foreclosure actions as well alleviate any past due mortgage payments over a set time.

Another great advantage to the chapter 13 bankruptcy is that any secured debt can be rescheduled and spread out through the course of the chapter 13 plan. (This is secured debt owed other than the mortgage on their main place of residence). Third parties are also protected under a specific stipulation for debtors who are liable to them on any “consumer debts” that are owed.

Who Can file a Chapter 13 Bankruptcy?
Any person who is employed, self-employed, or running an unincorporated business can be eligible to file a chapter 13 plan so long as their total unsecured debt is not more than $394.725 and any secured debt is not more than $1,184,200. Corporations or partnerships are not eligible to file for a chapter 13.

A person is not able to file a chapter 13 (or any chapter of bankruptcy) if there has been a previous bankruptcy petition that was discharged within the prior 180 days for the debtor’s deliberate failure to show up for court, or to conform to the instructions given by the court; or the petition was discharged because the creditors gained relief by recovering the property the debt was owed for because of a lien.

How the Chapter 13 Bankruptcy works?
The first step in filing a chapter 13 is to file the bankruptcy petition within the are the debtor maintains primary residency. It is essential that the debtor lists all the following information on their petition for bankruptcy for the court to be able to make a consideration regarding the petition:

A listing of all assets and liabilities
Their current income and expenses
A current timetable for all executed contracts and any leases that remain in effect
And a current financial statement
A current certificate of credit counseling is also required to be filed along with the chapter 13 petition; as well as any repayment plans that have been set up as a result of the credit counseling sessions.
Verification of any payment made through wage garnishment

All of this must be received at least 60 prior to the date of filing the petition. There will also need to be a statement of the person’s net monthly income; as well as any increases in income—cost of living raises or hourly wage advancements.

Once the court receives a petition for a chapter 13, the debtor then has 14 days to file the repayment plan. This plan is required to be provided to the court in order for the payments to be given court approval. These payments need to be fixed amounts that can be given to the trustee on a weekly, semi-monthly, or monthly basis and the trustee then disperses the payments to the creditors corresponding to the conditions of the repayment plan.

The chapter 13 bankruptcy plan can work well for a debtor as long as they are able to make their payments to the trustee in a timely manner. These payments can be set up through payroll deduction to ensure they are made on time; however, should a payment be missed, the court can discharge the case and move on with the liquidation orders required in a chapter 7 bankruptcy.

If financial debt is making it challenging to manage your expenses personal bankruptcy may be an option for you. The bankruptcy attorneys at Border Law serving Southfield and beyond has the experience and knowledge to help. Our goal is to use our 15 years of knowledge and expertise to provide a stress free and smooth experience for the individual or business facing bankruptcy. We can pave the way for debt relief and help you get the fresh start you deserve.

The Law Offices of Brett Border PLLC provides comprehensive legal services specializing in personal and corporate bankruptcy, and more. Call us today for a Free Case Evaluation!
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Chapter 7 Personal Bankruptcy Considerations

The Basics of Chapter 7 Personal Bankruptcy

Filing for bankruptcy is overwhelming. Although the laws vary from state to state the general process is the same. If you are thinking about filing, obtaining a bankruptcy attorney is always a good idea. The bankruptcy attorneys at Border Law have been helping clients throughout Southfield MI and beyond obtain debt relief with a high level of success for over 15 years.

Personal bankruptcy situations can be complicated and confusing, it is wise to seek advice from an experienced bankruptcy attorney.

When a person is drowning in debt and in severe financial straits, it is important to have an understanding of how a debt solution will work and if its right for your financial situation. Here is a brief explanation as to how the process of Chapter 7 personal bankruptcy works.

The Chapter 7 bankruptcy process takes from four to six months to complete. Depending on where you live and the complexity of your case, the cost varies. Prior to filing for Chapter 7 bankruptcy you must receive credit counseling from an agency that has been approved by the United States Trustee’s Office.

Next, you will be spending most of your time completing and filling out forms. These include a bankruptcy petition, schedules that list financial information, forms that list your income and expenses and you will need to claim your property exemptions. You will then need to file your bankruptcy petition and show that you can pass the Chapter 7 means test.

Once you file your petition, the automatic stay goes into effect. This stops most of your creditors from collecting against you. A bankruptcy trustee is then assigned to administer your case. He will review your paperwork, look for inaccuracies and check for possible fraud.

Then you will have a meeting with the creditors. This meeting is when you have to answer questions about your petition and finances from the trustee and creditors, if they show up. It is usually a short meeting.

After the creditors meeting, there is a 60-day window in which the creditors or trustee can object to a discharge of any particular debt. If they do, they need to file a lawsuit in bankruptcy court. If there is no discharge filed within the 60 days, the court will issue an order to discharge you unsecured debts. There are debts such as taxes, child support and student loans that are non-dischargeable.

When and if your discharged is ordered, you no longer owe unsecured debts and your creditors have no legal right to collect from you. The automatic stay is lifted, and your case will be closed. It’s time to start over and follow a new financial path.

The Law Offices of Brett Border provides comprehensive legal services specializing in personal and corporate bankruptcy. You will find the lawyers at our bankruptcy firm, compassionate and skilled at understanding the realities common to debt relief. Our goal is to provide clear and practical advice so that our clients capture the best the legal system can offer. We look forward to completing the filing process and obtaining the discharge order, so that our clients can get a fresh start in life!
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