DO’S AND DON’TS OF MICHIGAN BANKRUPTCY - Firebaugh & Andrews

Before filing for bankruptcy in Michigan, it is important to know how bankruptcy works. Whether you plan to file for Chapter 7 or Chapter 13, here are some do’s and don’t to remember when filing in the state of Michigan.

BEFORE YOU FILE CHAPTER 7 OR CHAPTER 13

If and when you decide that filing for bankruptcy is the best option, here are some information to keep in mind before filing in the state of Michigan:

• DO – Continue making payments on vehicles you intend to keep. (Do this after you have filed for bankruptcy as well.)
• DON’T – Borrow or withdraw from your 401K, IRA, or ERISA qualified savings and retirement plans to pay bills. If you do, you may be liable for penalties and taxes that are not protected by the bankruptcy filing.
• DO – Give “friendly” creditors a security interest in non-exempt property. If you have to borrow money from a friend or relative you could give that creditor a security interest in the property which you own. This will possibly make it less likely that a trustee will take the property.
• DON’T – Borrow money on your home to pay unsecured bills, such as credit card, utility, or medical bills.
• DO – Reduce the amount withheld from your pay for taxes.
• DON’T – Pay $600 or more back to relatives or business associates from whom you have borrowed money.
• DON’T – Put property you own into someone else’s name to avoid it being taken by creditors or the trustee. This is considered fraud.

AFTER YOU HAVE FILED CHAPTER 7 OR 13

Once you have filed for either Chapter 7 or Chapter 13 bankruptcy, keep these tips in mind:

• DO – Continue making payments on vehicles that you intend to keep. (Do this before filing bankruptcy as well.)
• DON’T – Sell or transfer assets without contacting our office first to discuss the matter.
• DO – Call our office when you get your Notice of Meeting of Creditors.
• DON’T – Be concerned if a few Creditors still attempt to contact you or send you bills or collection letters after filing.

GET MORE HELP WITH BANKRUPTCY IN MICHIGAN

If you need additional help with bankruptcy in Michigan, Moran Law Firm can help you get back on track. Call Firebaugh & Andrews Contact us for a free no-obligation consultation. 734-722-2999