Category: <span>News</span>

Many people ask if filing bankruptcy will discharge future debt incurred after their bankruptcy petition is filed. The answer is NO. A bankruptcy discharges debt that was incurred PRIOR to the date the petition is filed, not any new debt incurred after filing.

If you file a bankruptcy petition on April 1, 2013, all dischargable debt you incurred prior to April 1, 2013 will be discharged in the bankruptcy. It doesn’t matter how old the debt is, it will be discharged. However, if you acquire new debt after filing the petition on April 2, 2013, that new debt WILL NOT be discharged in your bankruptcy.

As an example, let’s say Henry files a Chapter 7 bankruptcy on April 1, 2013 but has to undergo emergency surgery April 2, 2013. The new debt from the medical emergency will not be discharged and Henry will need to wait 8 years to before he can file another Chapter 7 bankruptcy to discharge that medical debt. Until then, if Henry fails to pay the medical bill, he can be sued, judgments entered against him, his wages garnished and his state tax refunds intercepted.

If you are considering filing bankruptcy it is important to understand this reality. Call Church and Korhonen, PC for a free bankruptcy consultation today if you live in any of the Upper Peninsula locales (800) 758-5611 or local in Marquette, MI (906) 226-0001.

If a creditor sues you and gets a judgment against you they may garnish your paycheck, tax refund and bank accounts.

When your paycheck, refund or account is garnished, the creditor takes your money and you no longer have access to it.

If there is a judgment against you, you may want to wait to file your tax return so the creditor can’t take your refund. If you have money in accounts you may want to take the money out for safekeeping.

If this is happening to you, there is some good news.

If you file for bankruptcy protection in Michigan and if more than $600 has been taken by a single creditor within 90 days of filing, you may be able to get that money back.

Filing bankruptcy could mean your garnished wages, tax refunds and bank account funds could be paid pack IF the creditor took more than $600 within the 3 months before you filed your petition.

If you are being garnished, it would be wise to speak to a bankruptcy lawyer to see if you can have your hard-earned money returned to you.

If you live anywhere in the Upper Peninsula, including any of these counties, call today for a free bankruptcy consultation with an attorney. Alger, Baraga, Chippewa, Delta, Dickinson, Gogebic, Houghton, Iron, Keweenaw, Luce, Mackinac, Marquette, Menominee, Ontonagon, and Schoolcraft.

Church and Korhonen attorneys will help you receive every penny you are entitled to under the law.

If you owe money to a creditor, like a credit card company, a bank or hospital, the creditor has a right to sue you for the money if you fail to pay them back. It is not enough to simply file a law suit against you, the creditor must obtain a judgement from a court having jurisdiction over you stating that you do, in fact, owe the money.

Once a creditor has a valid judgment in hand, they may ask for an order to garnish your wages, your bank accounts and/or your tax refunds. An order for garnishment allows the creditor to seize your money from savings and/or checking accounts, paychecks and tax refunds until the amount owed is paid in full.

If this is happening to you, you can do a few things to protect your assets.

First and foremost, you can file a bankruptcy petition in the state where you live. There is a U.S. Bankruptcy Court representing every geographic area in the country. For instance, if you live in the Upper Peninsula of Michigan, you would file your petition with the U.S. Bankruptcy Court of the Western District of Michigan. The court is physically located in Marquette, MI. Filing a bankruptcy petition creates an automatic stay stopping all attempts to enforce judgments such as garnishments, lawsuits and property seizures.

If you intend to file bankruptcy, you may want to hold off on filing your state tax return until after the petition is filed. Most garnished tax refunds are from state taxes. If you delay filing your state return until after you file your bankruptcy petition, the automatic bankruptcy stay will protect your state refund from permanent seizure.

Another option is not to keep funds in any bank account that could be subject to garnishment. A creditor can only seize the money that’s in the account. If there is no money in the account, there is nothing to seize.

If your wages are being garnished, filing bankruptcy will stop the garnishment.

If you live in the Upper Peninsula of Michigan and are facing garnishment, you are not alone. The attorneys at Church and Korhonen are available to discuss your situation and advise you if you qualify for bankruptcy. Call today and stop the garnishments.

You do not need to hire an attorney to file bankruptcy. Some people choose to represent themselves in a bankruptcy case.

That being said, bankruptcy proceedings can be complex and lengthy. If done incorrectly, the results can be catastrophic. For example you could lose your home or other valuables.

Before you decide to represent yourself in a bankruptcy case, call an attorney who focuses on bankruptcy law in your geographic area.

An knowledgeable attorney should be able to interview you and determine whether you qualify for bankruptcy (not everyone does), whether your specific circumstances warrant bankruptcy (perhaps debt negotiation would be a quicker, less expensive way to help you out of debt), which chapter of bankruptcy

would be right for you (generally, consumers file either Chapter 7 or Chapter 13 bankruptcy. The overwhelming majority of people file for relief under Chapter 7. You need to know the difference and which chapter is right for you) and whether you will be able to keep all your belongings, including your

vehicles and home, should you file.

Church and Korhonen, PC was founded by lawyers Cathy Church and Cara Korhonen in 2010 specifically to help people file bankruptcy.

The office is physically located in Marquette, MI because the US Bankruptcy Court is located in Marquette. Anyone who resides in the Upper Peninsula of Michigan whether in the Soo , Marquette, Menominee, Calumet or beyond must file their bankruptcy in Marquette.

We are set up to conduct 99% of our business over the phone, through the mail or over the Internet. You do not need to travel to Marquette to be interviewed or retain our firm. We work with people all over the UP and most folks come to Marquette only one time during their bankruptcy case.

The one time you must travel to Marquette is 6 weeks after your bankruptcy petition is filed. There is a mandatory meeting called the 341 meeting and all people who file for bankruptcy must attend this one meeting. Aside from that one meeting, there is generally no need to travel to Marquette.

If you are in financial stress and would like to know whether you qualify for bankruptcy, call Church and Korhonen, PC today at 906.758.5611. A knowledgeable attorney will interview you over the phone, at no charge, and advise you about your options.

If you live anywhere in the Upper Peninsula of Michigan call Church and Korhonen, PC today!

Do you live in Ahmeek, Atlantic Mine, Autrain, Baraga, Bergland, Big Bay, Big Bay De Noc, Brevort Lake, Brimley, Calumet, Cedar River, Channing, Chassell, Christmas, Copper Harbor, Crystal Falls, Curtis, Deerton, Dollar Bay, DeTour, Eagle Harbor, Epoufette, Escanaba, Felch, Gaastra, Garden, Germfask,

Could City, Grand Marais, Gulliver, Gwinn, Hancock, Houghton, Hulbert, Iron Mountain, Iron River, Ironwood, Ishpeming, Keweenaw, Lake Linden, L’Anse, Mackinac Island, Manistique, Marenesco, Marquette, Mass City, Menominee, Michigamme, Mohawk, Munising, Naubinway, Newberry, Norway, Ontonagon,

Rapid River, Republic, Sault Ste. Marie, Seney, Shelter Bay, Silver City, St. Ignace, Stephenson, Tapiola, Trout Creek, Trout Lake, Twin Lakes, Watersmeet, or White Pine? Call Church and Korhonen, PC today! 800.758-5611

This is a very good question, and a bit tricky depending on the circumstances.

First, you need to know if your debts were discharged under Chapter 7 or 13 . The rules are different for each.

Secondly, it depends on which Chapter you want to file this time.

Here are the general rules:

Filing Under the Same Bankruptcy Chapter: Chapter 7 v. Chapter 13

If you are filing under the same bankruptcy chapter, the time frames are different depending on whether you are filing for successive Chapter 7 or Chapter 13 cases.

Successive Chapter 7 Cases

If you received your first discharge under a Chapter 7, you cannot receive a second discharge in any Chapter 7 case that is 􀂆led within eight years from the date that the first case was filed.

Successive Chapter 13 Cases

If you received your first discharge under Chapter 13, you cannot receive a second discharge in any Chapter 13 case that is filed within two years from the date that the first case was filed.

This can get tricky if you file your second Chapter 13 case between two and six years from the first Chapter 13 and the court refuses to confirm your Chapter 13 plan in the second case. Normally, if your plan is not confirmed you could convert to a Chapter 7 case. But in this situation, the rules for receiving a Chapter 7 discharge after a Chapter 13 discharge would kick in (see below) and prevent you from getting a discharge in the converted case.

Filing Under Different Chapters: The Order Matters

If the second bankruptcy case you want to file is under a chapter that is different from the chapter you received your first discharge under, the order determines the time frame.

Chapter 13, Then Chapter 7

If your first discharge was granted under Chapter 13, you cannot receive a discharge under any Chapter 7 case that is filed within six years from the date that the Chapter 13 was filed. The only exceptions to the six-year waiting period are:

if you paid all unsecured creditors in full in the Chapter 13, or if you paid at least 70% of the claims in the Chapter 13 and the plan was proposed in good faith and was your best effort.

Chapter 7, Then Chapter 13

If your first discharge was granted under Chapter 7, you cannot receive a discharge under any Chapter 13 case that is filed within four years from the date that the Chapter 7 was filed.

This can get tricky if you file your second case (the Chapter 13) between four and eight years after the Chapter 7 case and the court does not confirm your Chapter 13 plan. Normally, if your Chapter 13 plan is not confirmed, you could convert the case to a Chapter 7 bankruptcy. However, in this situation, the rules for successive Chapter 7 discharges would kick in, preventing you from getting a discharge in the converted case. In this case, it might make sense to simply dismiss the Chapter 13 case.

Confused?

Call and speak to a Church and Korhonen, PC bankruptcy lawyer, (800)758-5611 today if you live in the Upper Peninsula.

As an Upper Peninsula Bankruptcy lawyer, I speak to many people every day about the benefits of bankruptcy.

Most people I speak to have two things in common:

1. They did not want to call a bankruptcy lawyer at all and only did so as a matter of last resort and desperation, and

2. After speaking with me about their financial situation and options, they felt hopeful for the first time in years.

Every day I marvel about the people who call me for help. Generally, they are good, hardworking people who have suffered unexpected and catastrophic circumstances like job loss, significant illness, divorce or a combination of these terrifying situations.

These folks try everything they can conceive to climb out of the debt.

They work multiple jobs, take out payday loans, borrow money from friends, family members and banks in an attempt to consolidate their debt.

Sometimes, they contract with out of state debt consolidation companies only to learn their money was squandered and their creditors are suing for non-payment.

Despite their best efforts, everything fails and they are pushed  further and further into  financial quicksand. They feel they are slowly being strangled and their peace of mind is destroyed.

Often, many of these hardworking people have to choose between paying their credit card minimums, making their house payment, paying for prescription meds or putting food on their table. They find themselves in a vicious cycle of debt and despair.

By the time people call me, they feel ashamed, defeated and hopeless. Its so sad to hear the sadness and despair in their voices.

Once they call in and we have a chance to  talk, they start to feel hopeful. After a free 20 minute consultation, most folks begin to feel a sense of hope and relief. Why? Because filing bankruptcy lifts these folks out of the financial quicksand in which they have been drowning and gives them a fresh financial start.

When I do an initial consultation the first thing I do is consult for free. I do not require any payment for a consultation. Upper Peninsula Bankruptcy Lawyers are not like debt consolidation companies where one must pay to play; not at all. Rather, I provide a 20 minute consult where I ask a series of questions to determine the person’s financial situation and whether they qualify for bankruptcy.

We also schedule the consultation at the caller’s convenience. And, we talk over the phone so there is no need to take time out of a busy work schedule or use travel time to drive to our office.

Next, I determine if filing bankruptcy will alleviate any of their financial stress and if so, how much.

Then I quote them a price and tell them what they can expect from filing bankruptcy.

Finally, I send them a letter, putting into writing the cost, whether they qualify for bankruptcy and the retainer process. I also send them a bankruptcy starter kit so they  get started on the road to financial freedom whenever they choose.

I do all of this without charging the caller a dime. Its free. Absolutely.

There is no coercion, guilt and duress in the Upper Peninsula Bankruptcy Lawyers process. The client controls their financial destiny.

If you or anyone you know is suffering with intolerable debt and living in the Upper Peninsula of Michigan, call or email us today to schedule a free initial consultation. You may also fill out the bankruptcy evaluation form to your right and we will contact you to schedule an initial consult. Doesn’t matter how you reach out to us, just that you do reach out so we can help.

There is nothing to lose and everything to gain including hope and peace of mind.

(906)226-0001