Legal Question in Bankruptcy in Michigan

Bankrucy

Do all assets play into account when filing for chapter 7. I get a pension that is enough to pay my mortgage payment. I pay for other expenses from insurance death benifit. I am a widow not employed and can't get SS for 7 years. Also do they look at retirement accounts? I have about 30,000.00 in credit card debt.


Asked on 10/02/07, 8:10 pm

2 Answers from Attorneys
Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: Bankrucy

All assets must be disclosed, but not necessarily used to determine disposable income. Retirement plan funds are generally exempt unless they exceed $1 million (that means you can keep it all). SS is usually not considered disposable income under the bankruptcy laws.

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Answered on 10/06/07, 8:58 pm
Victoria Easterday Law Offices of Victoria Easterday

Re: Bankrucy

You must report all of your assets when filing a bankruptcy action. There are protections for most assets which are called exemptions. These exemptions allow you to protect assets from liquidation by the Trustee. I would need to know more facts about your assets to determine if all of your property could be protected in a Chapter 7 action. Most pensions are protected by their own exemption. I would also need to know more about your monthly expenses to determine if a Chapter 7 action is right for you. On the surface it appears that you would be a good candidate for a Chapter 7 discharge as it would take you years to pay off such a high balance on the credit cards given your yearly income. Please do not hesitate to call me for a free consultation. Best wishes.

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Answered on 10/03/07, 1:10 am


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