What Are The Benefits of Bankruptcy?

What Are The Benefits of Bankruptcy?

There are four primary benefits to filing for bankruptcy. They include: Automatic Stay Once you file for bankruptcy, your creditors are barred from taking any further collection action against you, including phone calls, letters, lawsuits, repossessions or mortgage foreclosures. Debt Discharge Once your bankruptcy is complete, most or all of your debts will be resolved. Even if you have ineligible debts left over, you will likely be in a better position to address them than you were before bankruptcy. Catching Up On Past Due Payments If you file for Chapter 13, you will…Read more

Can I Discharge Michigan Driver’s Responsibility Fees with Bankruptcy?

Yes You Can Michigan driver’s responsibility fees are generally dischargeable in Chapter 7 bankruptcy. Criminal penalties are not dischargeable in bankruptcy. However, Michigan driver’s responsibility fees are not “criminal penalties.” They are administrative fines levied by the Secretary of State’s office, not as a sentencing judgment or criminal statutory penalty by a criminal court conviction. Therefore, they should not fall under the “criminal penalty” non-dischargeability exception to the list of debts dischargeable under the US Bankruptcy Code as traffic tickets, parking tickets, and other fines may. Thus, the filing of a Chapter 7…Read more

Can I keep my 401(k) if I File for Bankruptcy?

Can I keep my 401(k) if I file for bankruptcy? Yes When you file for bankruptcy you are given exemptions that you may use to protect your property. Some exemptions are limited, such as those used to protect your automobile and household goods, and some are unlimited, such as the exemptions you receive to protect any qualified retirement. 401(k)’s, 403(b)’s, pensions and the vast majority of IRA’s are considered to be qualified retirement plans.Read more

How Much Time Does It Take to Complete a Chapter 7 Bankruptcy?

A Chapter 7 bankruptcy begins upon filing a bankruptcy petition. Once the petition is filed, the court will issue a case number and an automatic stay is invoked. The automatic stay prohibits creditors from collection activity. This affords the Debtor relief from phone calls, foreclosure, repossessions, garnishment or other collection activity. Approximately thirty days after filing the petition, a meeting is scheduled called the First Meeting of creditors. At this meeting, creditors may attend to ask questions about the case. The meeting is conducted by a Trustee who is appointed by the court.…Read more

Qualifications to file Chapter 7 Bankruptcy

How is my income calculated?  The bankruptcy court looks at your last six months worth of income from al courts plus the income received from other household members including your spouse as long as are your not living separately, even if you are not filing for bankruptcy together.  Those numbers are added up and divided by six to get an average monthly income.  This is called current monthly income.  Money you or your household members receive or have received during the past six months from Social Security and certain other sources do not…Read more


Bankruptcy questions? Step One: Schedule a no-cost, no-obligation consultation. Your first consultation is free, and you will meet with the attorney personally. The attorney will help you determine your best option available and answer all your questions. Bankruptcy Step two: Complete your online credit counseling course and submit your documents. After your first meeting with Watt Law Firm, you will be provided with a questionnaire and a list of required documents. Bankruptcy Step Three: Attend the meeting of creditors. Shortly after your case is filed, Watt Law Firm will accompany you to the 341 hearing, also known…Read more

Grand Rapids Attorney Warning!

Grand Rapids Attorney is warning about chapter seven bankruptcies this time of year as the 2013 tax refund will not be issued until the Spring of 2014.  If you are filing chapter seven bankruptcy between now and until the time you file for your tax return, this is not an asset you have in your hand and that you can count as an asset. It is something that is allowable in the future.  However, bankruptcy laws state that it is an asset that you currently hold and are vested in and if you…Read more
When Obtaining An Attorney

When Obtaining An Attorney

When an attorney is admitted to the State Bar of Michigan, that allows the attorney to practice anywhere in Michigan.  In the United States everything is based on states law and states licensing and regulation.  Obviously, there are certain federal things but those are different.  The majority of divorces, law suits, everything that occurs within a certain state are authorized by that state. So, once an attorney is admitted to the State Bar of Michigan, the attorney can practice anywhere in Michigan.  Geographically and economically, sometimes it doesn’t make sense to travel to…Read more