“MONEY FOCUS”

Bankruptcy Discharge - What it is

A bankruptcy discharge frees the debtor from individual legal responsibility for particular types of debts. In simpler words, debtor is no longer lawfully required to pay off any debts that are discharged. The discharge is a enduring order keeping out the creditors of the debtor from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, mails and personal contacts.

Although a debtor is not personally liable for discharged debts, a valid lien - a charge upon specific property to secure payment of a debt that has not been made unenforceable in the bankruptcy case will remain after the bankruptcy case. Read the rest of this entry »

Consumer Credit Counseling in Michigan

Consumer credit counseling plan is for those of Michigan residents who would rather not file for any type of bankruptcy. Your creditors may be prepared to lower your interest rates and allow cheap payments if you go into a debt repayment plan. Normally, in these plans, you deposit money each month with the credit counseling service.

Your deposits are used to forfeit your creditors according to a disbursement schedule developed by the counselor. As part of the reimbursement plan, you may have to concur not to apply for or use any added credit while you are contributing in the program.

A thriving repayment plan requires you to make usual, well-timed payments, and could take forty eight months or longer to complete. Ask the Michigan Bankruptcy credit counseling service for an approximation of the time it will take to complete the plan. Some credit counseling services charge little or not anything for running the plan; others charge a monthly fee that could add up to a noteworthy charge over time. Some credit counseling services are funded, partly, by donations from creditors.

Meeting of Creditors Read the rest of this entry »

Corporate bankruptcy

You may be wondering what happens when a public company files for protection under the federal bankruptcy laws and who protects the interests of investors. It is for this reason that I hope this information should not only answer the above questions but also help you find out if the old securities have any value when, and if, the company is reorganized.

The Company- what happens to it?

Federal bankruptcy laws rule how companies become liquidated or improve from serious debt. A bankrupt company, the –debtor, might use Chapter 11 of the Bankruptcy Code to restructure its business and attempt to become cost-effective again. Administration continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court. Read the rest of this entry »

The Michigan bankruptcy law process follows a number of steps which are to be known by the residents of Michigan State.

Credit Counseling

Bankruptcy Act makes it mandatory to all individuals’ debtors who file bankruptcy on or after October 17, 2005, to undergo credit counseling within six months before filing for bankruptcy reprieve and to finish a financial management instructional course after filing bankruptcy.

Bankruptcy Act Means Test

For one to qualify to file a both chapter 7 and 13 bankruptcies, a means test must be done to analyze your income and expenses. To apply the means test, the courts will look at your average income for the six months preceding filing and contrast it to the median income for Michigan State. If the income is under the median, then you may choose Chapter 7. If your income exceeds the median, the remaining parts of the means test will be applied to establish if you can file Chapter 7 or if you must file Chapter 13. Read the rest of this entry »