Welcome to Bankruptcy Guide
Bankruptcy In Michigan Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Figuring the Value of Your Bankruptcy Car Loan
from: Deb St. George - HomelessInKingCounty.comMost people have a car loan when they file bankruptcy, so the old and new bankruptcy laws address loans on vehicles. Unfortunately, the new laws are tougher on debtors in terms of how much you must repay on your outstanding loan. This forces the debtor to pay the full amount for loans that even have excessive interest rates.
Under the old bankruptcy laws, debtors only had to repay the value of the vehicle they owned. That meant you only had to pay back the current resale value and not the retail value of the vehicle. Under the new law, if you have had a loan placed on the car within the last 3 years, you will have to pay the full amount of the loan.
This is one of the most significant changes in the new bankruptcy law. Under the old law, the courts would have determined the real value of the car and then figured up what you had paid to date and what you would owe in payments to reimburse to that value. Under the new law, you have to pay the full amount or lose the car.
This means that if you took out a loan at a high interest rate, you will still have to pay back the full loan. In effect, you are paying 2 or 3 times what the car is worth. This law change made it most difficult on those who had to accept less than desirable car loans in order to obtain a vehicle. Of course, under a chapter 7, you can surrender the car if you simply cannot afford to make the payments. But once again, that makes it difficult to recover from a bankruptcy when you have no car to drive. Under a chapter 13, the car loan payment is included in your repayment plan.
Speaking of bankruptcy car loans, you will probably be inundated with car loan offers once your bankruptcy is discharged. You wont ask for the information, but plenty will show up in your mailbox. Auto dealers know many people surrender their cars and need a vehicle, and so they track bankruptcy court records to find out who has filed. The letters claim to want to help you rebuild your credit, but you must be very careful. Odds are the car loan will be charged a premium interest rate because of your credit rating.
The good news is that if you can afford to buy a car, and dont have one, the bankruptcy will not stop you from finding interested lenders. Its important to remember though that you dont want to start creating new debt that you cannot afford to pay. You cannot file another chapter 7 for 8 years or a chapter 13 for 4 years. New creditors see themselves as first in line again in terms of collection status.
Bankruptcy In Michigan News
Obama campaign criticizes Romney on bankrupt auto supplier - The Detroit News
 Globe and Mail | Obama campaign criticizes Romney on bankrupt auto supplier The Detroit News By David Shepardson Washington -The Obama re-election campaign says Republican Mitt Romney's tenure at private equity firm Bain Capital resulted in the loss of more than 1000 jobs at a Michigan auto supplier. President Barack Obama's campaign has ... Obama campaign blames Romney's ex-firm for hundreds of Michigan layoffs The Bain Debate: How Much Will Voters Care About Romney's Role? First Thoughts: Is Bain fair game? |
Gingrich Inc: Out of business - Salon
 Salon | Gingrich Inc: Out of business Salon Peter Hoekstra, R-Mich., who is now running for a Senate seat in Michigan. Gingrich resigned a year later, “in disgrace,” as Mitt Romney said in January. Gingrich spent the next decade in the wilderness, but in a near-miraculous twist of the classic ... |
Michigan airport mainstay American Airlines to explore mergers after US ... - MLive.com
 MLive.com | Michigan airport mainstay American Airlines to explore mergers after US ... MLive.com By Zane McMillin | zmcmilli@mlive.com AP File Photo American Airlines, a mainstay at multiple Michigan airports, has agreed to explore possible mergers, caving to pressure from its creditors and labor unions as it navigates Chapter 11 bankruptcy, ... |
Hostess Brands, amid bankruptcy proceedings, sends layoff warnings to 381 ... - MLive.com
 MLive.com | Hostess Brands, amid bankruptcy proceedings, sends layoff warnings to 381 ... MLive.com By Melissa Anders | manders@mlive.com Hostess Brands Inc. warned the state it could lay off all of its 381 employees in Michigan if the company liquidates as part of its bankruptcy restructuring. Notices were sent on Friday to Hostess' 18500 employees ... Hostess warns of 380 possible layoffs in Michigan Hostess says could lay off 381 workers in Michigan Prosecutor-led effort freed convicted CO man |
InCharge Showcases Bankruptcy Courses at ICLE Seminar in Plymouth, Michigan - MarketWatch (press release)
InCharge Showcases Bankruptcy Courses at ICLE Seminar in Plymouth, Michigan MarketWatch (press release) "Michigan has jumped from the number nine position at the end of 2011, to the state with the sixth most bankruptcy filings during the first quarter of 2012," said Beth Mason, InCharge's Director of Outreach Programs for Bankruptcy Services. |
The departure of Direct Air continues to ground travel stats at Kalamazoo ... - Michigan Business Review - MLive.com
 Michigan Business Review - MLive.com | The departure of Direct Air continues to ground travel stats at Kalamazoo ... Michigan Business Review - MLive.com KALAMAZOO, MI – Air passenger traffic at the Kalamazoo/Battle Creek International Airport was down about 30 percent overall in April, compared to April of 2011. Approximately 9124 people boarded planes at the local air terminal n April, down 30 percent ... |
Michigan City Considers Outsourcing Fire Department - Firehouse.com
Michigan City Considers Outsourcing Fire Department Firehouse.com She said the legacy costs, including pension payments, are too high. "We're a city that should not be here," Hunt said of the city's financial state. "We're doing everything we can to stay out of bankruptcy, or having anyone come in. |