Statistics reveal that in 2017 more than 700,000 individuals filed for bankruptcy. Unfortunately, bankruptcy can remain on your credit report for up to 10 years, depending on the type of bankruptcy you file.

Sign up for a Secured Credit Card

After your bankruptcy is discharged, take out a secured credit card, if possible one that does not require an annual fee. With a secured credit card, you must provide a deposit and your credit limit will then be assigned based on the amount deposited. During the first year that you declare bankruptcy, make certain to place at least one charge a month on your card and make sure this charge is not more than 20% of your available credit.

Sign Up for a Credit Monitoring Service

After declaring bankruptcy, enroll in a free credit reporting service like CreditKarma. With these services, you can monitor your credit report to make certain that you do not end up the victim of identity theft. Many people discover that after their credit score reaches 700, they begin to receive mainstream offers from major credit institutions. After obtaining a standard credit card, you should make sure to keep your finances in order and still avoid irresponsible credit behavior.

Learn Your Lesson From Filing for Bankruptcy

To avoid having to declare bankruptcy in the future, it is important to understand why you declared bankruptcy in the first place and to avoid these mistakes in the future. For some individuals, bankruptcy was the result of unexpected events like the sudden loss of a job or steep medical bills. For other people, overspending or financially risk behavior is the cause of credit problems. Responsible behavior is often promptly rewarded with a good credit score that helps you continue to build a good financial future and obtain lower insurance premiums.

Speak with an Experienced Bankruptcy Lawyer Today

The bankruptcy process is particularly complicated and it is natural to have a ton of questions. One of the best ways to make certain that your bankruptcy process resolves in the best possible manner is to obtain the assistance of an experienced bankruptcy attorney. Contact Resnick Law today to schedule an initial free consultation.

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There are a number of myths out there about the bankruptcy process. While some of these myths contain an element of truth, most have no basis in reality and were likely created to scare people. If you are navigating the bankruptcy process, it is a wise idea to contact an experienced bankruptcy attorney who can help you navigate this complicated legal world and help you distinguish myth from reality.

Myth #1: You Will Lose All Your Property Through Bankruptcy

In reality, many people who file for bankruptcy do not lose any of their property unless they choose to surrender items. As part of Chapter 7 bankruptcy, you have the option to keep property like your home and car while you continue to make monthly payments. If you are unable to qualify for Chapter 7 bankruptcy, you can still file for Chapter 13 bankruptcy, which will allow you to retain your property.

Myth #2: Your Spouse Must Also File for Bankruptcy

Spouses may file for bankruptcy jointly, but spouses can also file separately if the other spouse does not want to pursue bankruptcy. The origin of this myth is likely the fear that both spouses’ credit will be ruined if only one spouse files for bankruptcy. Simply not the case.

Myth #3: Tax Debt can Not be Discharged in Bankruptcy

While it is true that tax debts are often non-dischargeable, in some situations, they are. To determine if your tax debts are capable of being discharged in bankruptcy, ask a seasoned bankruptcy lawyer who can evaluate your particular situation.

Myth #4: You can Not Rebuild Your Credit After Bankruptcy

After declaring bankruptcy, you often must wait some time to rebuild your credit. In many cases, however, people who navigate the bankruptcy process discover that they are sent credit card applications shortly thereafter. In many cases, individuals who have learned how to handle their credit wisely are able to quickly rebuild their credit score.

Myth #5: Everyone Will Know About Your Bankruptcy

It is true that bankruptcy filings are a matter of public record. To find your bankruptcy, however, a person would need to know how to search for your particular bankruptcy filing and pay a fee to use the court’s filing program. Bankruptcies, however, are not published in newspapers, so your co-workers, employers, and friends often will not know that you filed for bankruptcy.

Contact an Experienced Bankruptcy Attorney Today

While it is possible to navigate the bankruptcy process on your own, if you make one mistake, there is a possibility that you will end up with all your original debt. For this reason, it is a wise idea to obtain the assistance of an experienced Michigan bankruptcy lawyer to help you navigate the bankruptcy process. Contact Resnick Law today to schedule an initial free consultation.

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Because filing for bankruptcy is often seen as an acknowledgement of financial failure, many people resist initiating the bankruptcy process. In reality, waiting to file bankruptcy often makes it more difficult for a person to recover from the bankruptcy process. The following will review some of the reasons why you should not delay in speaking with an experienced bankruptcy lawyer.

How Waiting to File can Cause Problems

There are some practical reasons why individuals who are interested in bankruptcy should not delay the process. The longer that a person waits to file bankruptcy, the more likely an individual is to encounter one of several obstacles, which include:

• The longer that a person waits, the more likely that a person is to experience a reduction of his or her assets. With a decreased number of assets, it will be more difficult to rebuild one’s credit rating after declaring bankruptcy.
• The debt-to-income ratio is often increased for individuals who wait to file bankruptcy. As a result, by waiting to declare bankruptcy, you will likely end up facing more and larger debts that require discharge.
• Individuals who wait to file bankruptcy are more likely to end up facing debt collection lawsuits. This can creat additional complications associated with rebuilding your credit history.

Because of these numerous complications, individuals who wait to file bankruptcy often experience a more challenging time obtaining a fresh start at rebuilding their credit.

Signs You Should File for Bankruptcy

One of the most challenging parts about beginning the bankruptcy process is that it can be difficult to determine if you an appropriate candidate for bankruptcy. Some of the signs that you should consider filing for bankruptcy include:

• You have debts that are greater than 40% of your income. A debt to income ratio of this degree suggests that you will likely experience financial distress and that your debts are too high to pay off without help.
• Credit is being used to pay to pay off other debts. This financial pattern suggests that a person is falling further into debt. It can be particularly difficult to recover from such financial difficulty.
• You have debts that can be erased by declaring bankruptcy. This includes debts related to unsecured credit cards, medical bills, and personal loans. Some other types of debts, including student loans, can only be discharged through bankruptcy in a limited number of situations.
• You have been forced to give up essentials to pay off debts. This might include forgoing medical care or food.

Speak with an Experienced Bankruptcy Lawyer

Once you decide that bankruptcy is an appropriate step, you should then determine whether to file Chapter 7 or Chapter 13 bankruptcy. You should not hesitate to contact an experienced bankruptcy lawyer at Resnick Law if you are considering pursuing the bankruptcy process. We have helped many people regain their financial footing, and we know what it takes to make sure that you have the opportunity to rebuild your credit.

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While most couples do file bankruptcy together, there are some circumstances in which married couples might decide to file bankruptcy separately. In rare cases, such as newlyweds, for example, one spouse might file bankruptcy alone, which helps to preserve the non-filing spouse’s credit standing. However, certain aspects of the marriage will still be examined, so you should consult with an experienced

The “Means Test”

Even if only one spouse is filing bankruptcy, the entire income of the household must be calculated for the “means test” that determines whether or not you are eligible for Chapter 13 or if you should file for Chapter 7. While bankruptcy laws require that the household’s total income be calculated, the codes also allow for household members who are not filing to include their expenses for deductions, as well. The means test for bankruptcy is quite complicated.

Do You Have to be Legally Married?

The short answer is, yes. You cannot be in a common law marriage, and even if you have been living together and referring to each other as wife and husband for 20 years, you can only file a joint bankruptcy if you are legally married. Common law marriages are not recognized in Michigan, but even if they were, federal bankruptcy codes require a legal marriage for joint bankruptcy petitions.

Will Filing an Individual Bankruptcy Affect Your Spouse?

There are times when only one of the spouses carries the load of debt. Married individuals have the choice of filing bankruptcy jointly or individually, so if only one spouse has the majority of debt, it would make sense for only that spouse to file bankruptcy. If only one spouse files bankruptcy, only his or her personal information, such as a name and social security number, will show up on the petition, so the credit report of the non-filing spouse will not contain any mention of the bankruptcy. This is typically rare, however, in married couples.

Are There Benefits for Married Couples Filing Bankruptcy?

It costs a little over $300 for an individual to file either Chapter 7 or Chapter 13 bankruptcy. Married couples only need to pay this filing fee once, which essentially means that both people get to file bankruptcy for all of their debts for one fee, rather than two. This is typically true for legal fees, as well – married couples’ debts are consolidated into one case.

Are You Considering Filing Bankruptcy?

If you live in Michigan, are married, and you are considering filing Chapter 13 or Chapter 7 bankruptcy, you should contact a Michigan bankruptcy attorney who focuses on helping married couples and individuals deal with their consumer debts. Contact an experienced attorney at Resnick Law P.C.for a free phone consultation at (248) 642-5400. If you are in the Detroit area, you can call (313) 423-8320, and if you are in the Bloomfield Hills, call (248) 642-5400. We will evaluate your specific case meticulously and help you make informed decisions based on your unique financial circumstances.    

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Today the idea of doing it yourself has infiltrated all aspects of our lives. Not only are we advised to tackle home repairs without the assistance of a specialist, we are encouraged to handle legal matters on our own, as well. While it is possible to file the forms associated with certain legal issues with little or no assistance, that does not always mean you should do so. Certain matters such as bankruptcy can quickly become complicated, and without a lawyer to represent you it is easy to

No Representation at Hearings

Once the creation of new filing forms made it easier for a person to initiate bankruptcy proceedings without an attorney, many people rushed to complete bankruptcy petitions on their own. What many forgot or did not realize is that bankruptcy requires a debtor to attend many hearings. Without a bankruptcy attorney, you have no one to represent you during your meeting with your creditors or when your case goes before a judge. In fact, while many debtors are able to skip hearings after the meeting with creditors because their attorneys can attend on their behalf, you will be required to go to all hearings alone, often placing you in a room filled with experienced attorneys.

Errors Lead to Dismissal

Filing a bankruptcy petition and receiving an automatic stay does not mean that you will have indefinite protection from the court. If you make an error in your filing such as forgetting to submit an affidavit or not providing documentation to your trustee or the court, your bankruptcy case could be dismissed. While it is possible to refile, once your case is dismissed, your creditors can resume collection activities and may be even more aggressive than before. Having your bankruptcy case dismissed also means that you will need to repay filing fees and other expenses at a time when money is in short supply.

In many cases, a qualified bankruptcy attorney can take over your case and correct any mistake that you have made. Unfortunately, there are times when a person’s errors are so extreme that a bankruptcy attorney cannot provide that person with the help he or she needs. If your bankruptcy judge dismissed your case with prejudice and bars you from re-filing for several months, an attorney might not be able to get the court to reconsider their decision.

Discuss Your Situation

No matter what your bankruptcy status or financial situation is, the bankruptcy attorneys at Resnick Law are here to help. Our attorneys have helped individuals and businesses throughout Southeast Michigan get relief from their creditors through bankruptcy. We can also help you explore alternative debt relief methods such as debt settlements and negotiations with your creditor. If you are currently struggling with debt, contact our firm today at (248) 642-5400 to discuss your options and get the help that you need.

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There are many consumers who look forward to getting substantial tax refunds each year. These funds may be used as savings, to pay for various expenses, or to pay off existing debt. Consumers who have made plans to spend their tax refunds may be concerned about the ability of existing creditors to garnish those tax refunds.

Generally, private creditors – creditors who are not government creditors – cannot garnish a person’s federal tax refund. Federal tax refund garnishment is usually restricted to garnishment by government agencies that are owed money by the taxpayer. In Michigan, however, a private creditor can have a state tax refund garnished by first petitioning a court for a judgement.

With a judgement in hand, the private creditor can seek a writ of garnishment from the Michigan Department of Treasury to intercept a debtor’s tax refund. The writ can apply to garnish or intercept a debtor’s refund once to settle a debt owed to the judgment creditor. There is a fee for garnishment, and the creditor can make one payment when filing for several garnishments.

When a creditor has initiated a garnishment with the Michigan Department of Treasury, the debtor who owes the debt, and the court that permitted the garnishment, are notified of the impending garnishment. If the debtor does not wish to have his or her tax refund intercepted, he can make arrangements to pay the debt in advance and avoid the garnishment.

The debtor may try to avoid losing the tax refund by negotiating with the creditor to set up a payment plan to pay off the debt gradually instead of all at once. Once the creditor has already received a final judgment on the debt, and has taken steps to start garnishment, the creditor may not be willing to negotiate with the debtor. If the debtor has not been successful in keeping to a payment plan in the past, he is not likely to keep up with a plan unless the debtor’s financial circumstances have changed. The creditor has to consider issues such as how much of a refund a particular debtor may receive in deciding whether or not to allow the debtor to pay off the debt in installments.

In addition to seeking to garnish a debtor’s tax refund, a creditor can seek garnishment of a person’s wages as well as lottery winnings. Creditors can also choose to sell a debt that is considered uncollectible to a collections agency or firm, often for pennies on the dollar. If the debtor has filed for bankruptcy before the creditor has been fully repaid, the creditor may still have an opportunity to collect on the debt if the debt is recorded and secured.

Contact an Experienced Creditor’s Attorney

For more information on how you can best collect a debt with minimal costs to your organization and how to deal with debtor bankruptcy, you need to consult an experienced creditor’s rights attorney. Contact us at Resnick Law, P.C., in Bloomfield Hills and Detroit, Michigan to schedule a consultation.

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A person may decide to file for bankruptcy for various reasons, such as overwhelming debt, as a way to restructure a business, or because of unemployment. Federal bankruptcy laws provide different options for debt discharge depending on the goal of the person filing. In return, the law requires the person to provide accurate information on all aspects of the filing, especially assets and income, or be subject to criminal charges for bankruptcy fraud.

Bankruptcy fraud occurs in several different ways. A person may commit bankruptcy fraud by: intentionally lying on the forms required as part of the bankruptcy filing; hiding assets to avoid losing them in the bankruptcy; attempting to bribe the trustee appointed to handle the bankruptcy; or by filing multiple bankruptcy petitions in various jurisdictions using false information. Of these, the hiding of assets is the most common form of bankruptcy fraud.

Since bankruptcy law is federal, a person who commits bankruptcy fraud is charged under federal law. A person who commits more than one form of bankruptcy fraud can also be charged multiple times and faces a prison sentence on each charge of up to five years in prison. Additionally, the person may be required to pay fines and fees associated with the prosecution.

There are also potential civil repercussions for committing bankruptcy fraud. The court may refuse to grant a discharge of the debt that caused the person to file for bankruptcy in the first place. When this happens, the creditors can sue to recover the money owed or move for foreclosure and repossession of assets. In addition, the appointed bankruptcy trustee can ask for civil fines to be levied. These kinds of actions can have longer term impact; for example, if a creditor gets a judgement against a person, the creditor can seek to have the person’s wages garnished in order to collect on the judgment. This would make it difficult to get a fresh start, especially after serving a prison term for a fraud conviction.

Some people who may fail to list assets because they are afraid to lose them in the bankruptcy should not take the risk of being charged with a federal offense. A person who is filing for personal bankruptcy should always remember that there are some types of property that he or she will be allowed to keep even after that bankruptcy. There are also ways to affirm debt obligations for a mortgage or a car and keep making payments after other debts have been discharged. Before filing any petitions or forms to initiate a bankruptcy proceeding, it is important to speak with a bankruptcy attorney.

Contact Us for More Information

If you are experiencing financial troubles and considering filing for bankruptcy, you need to speak with an experienced bankruptcy attorney. Our experienced attorneys can discuss the legal issues that will arise in a bankruptcy, and how they will affect you. We can also help you consider other options that may help you avoid bankruptcy. For more information, call us at Resnick Law, P.C., in Bloomfield Hills and Detroit, Michigan.

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