Can I Discharge My Medical Bills in Bankruptcy?
This seems an obvious question, but, as an article in today’s New York Times discusses, medical bills are a primary reason that many Americans file for bankruptcy. It is certainly the case among most, if not all, of my clients in the Detroit, Michigan area, that medical bills comprise a huge portion of the debt that I see. Amongst those that I meet who are roughly age 35 or under, nearly all are seeking bankruptcy as a solution entirely due to huge medical bills. Younger people in this country, as a statistical group, are significantl

What Happens If I Declare Bankruptcy and am Listed as a Joint Account-Holder on Someone Else’s Ban
Several times in recent weeks, individuals I’ve counseled wishing to declare bankruptcy have revealed to me that, in addition to their personal bank accounts, they are also listed as “joint holders” on someone else’s bank accounts, such as an elderly relative, sibling, or friend. (For the sake of clarity, I am not discussing joint bank accounts between married individuals in this post.) Particularly in the case of elderly parents, this is often for convenience or estate-planning purposes, as the parent anticipates the possibility that, at some point, they may be physically unable to gain access to their needed funds. In such cases, the

What Assets Should I Disclose to My Bankruptcy Attorney?
As a bankruptcy attorney, I’m constantly surprised by the number of clients or potential clients I speak to who believe that, to file Chapter 7 or Chapter 13, they need to move, hide, or sell off assets in order to succeed in their filing. Worse, people often admit that they have been counseled by friends or relatives to hide assets from me, their retained attorney. Fortunately, none of my clients have actually done anything like that, but the fact that so many believe that they should at least consider failing to disclose or hiding their assets suggests that there is a great deal of misinformation about the bankruptcy process at large in the me

How Much Non-Consumer Debt Can I Discharge in a Chapter 7 Bankruptcy?
To file a personal Chapter 7 bankruptcy, your total debt-load must be “primarily” consumer debt according to the Bankruptcy Code. That is, if you have a larger proportion of of “non-consumer” (business) debt than “consumer” (personal) debt, you are ineligible to file a Chapter 7  bankruptcy. This sounds rather cut-and-dry, but, in reality, it is often unclear how much of one and how much of the other a filing debtor has. Many of my bankruptcy clients in the Detroit, Michigan area have some percentage of business debt alongside their personal, consumer debt. As the job-market has soured here in Michigan, many people h

What Happens if My Creditors Keep Calling after I File my Bankruptcy Petition?
In Detroit, Michigan, where I practice bankruptcy law on behalf of consumers, and every other jurisdiction in the United States, it is true that, once you file a petition for either Chapter 7 or Chapter 13 bankruptcy, all collection attempts against you must cease. The reason for this is that, as I’ve discussed in many of my posts on this blog, upon the filing of the bankruptcy petition, an “automatic stay” goes into effect against all of your creditors’ collection attempts. This automatic stay, which originates in Section 362(a) of the US Bankruptcy Code, prevents creditors from calling, sending bills or letters, garnishing your wages