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Charles J. Schneider
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Charles Schneider’s Answers

21 total

  • How do you file an Abatement for reduction of penalties/interest with the Ohio Dept of Taxation?

    All sales tax returns were filed, and the original sales tax amounts paid by the end of 12-31-2010, as we closed our corporation, effective 12-31-2010. We had to file chapter-7 bankruptcy, in July 2010, that was discharged in Oct 2011. And...

    Charles’s Answer

    You can force the State to accept your payment terms under a chapter 13 bankruptcy case in a maximum five year plan. Generally an abatement will not occur more than once.

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  • I have a co-signer on car payment. I may be filing for chapter 13 and excluding my house and car and only including my credit

    ...card debt. Does this affect my co-signer negatively?

    Charles’s Answer

    I agree with may of the comments of the above attorneys. There should be no legal consequences to a co-signor by paying the debt in full with interest in a chapter13 plan. If this full payment is approved in your plan, then the automatic stay protects you, your car and an y co-signor on the car loan. What if any impact on the co-signor's credit may be is a different matter and not a matter of law but credit reporting industry standards.

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  • Forgot to list a creditor?!

    I listed a judgement (garnishment) on the statement of financial affairs but forgot to include on schedule f and mailing matrix. I filed my chapter 7 paperwork today myself without an attorney. Is there anything I can do? I want to make sure th...

    Charles’s Answer

    The best answer to this question is a Sixth Circuit Court of Appeals decision called In re Madaj which states that even an unlisted creditor will be discharged in a chapter 7 case unless the debt would be determined to be a non-dischargeable debt under 11 USC 523a (fraudulent debts, malicious injury debts, etc.) or there was an asset estate. However the actual knowledge of the creditor of the case in time to file an adversary case or proof of claim would also create a discharge of the debt. So your informing the creditor of the filing by any other means should be sufficient to put the creditor on notice to stop the garnishment. However, to be safe it is best to amend the list of creditors and add the creditor. But do so prior to the issuance of your discharge.

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  • Mortgage not reaffirmed after chapter 7 if we walk away would it hurt my husbands credit score.

    my chapter 7 was discharged 5 years ago, i didn't reaffirm my mortgage. I'm still making payments on time. My husband's name is also on the mortgage, we now want to buy another house. If we walk away would it hurt my husband's credit? he didn't fi...

    Charles’s Answer

    Your bankruptcy had nothing to do with your husband's credit score. It only removed your liability for the loan. Bankruptcy does not wipe out the debt for the non-filing spouse. So long as current payments were made on the mortgage your husband should have had good credit based on the good performance of the loan. If he walks away (defaults on the loan) it will be reported as a defaulted loan on his credit report. Again your prior bankruptcy does not play a part in this discussion.

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  • What is the length of time after filing chapter 7 bankruptcy you have to wait until obtaining an asset?

    I filed for bankruptcy on 11/4/11. Foreclosure had already started on my home so it was included. My house went to the sheriff sale on 2/23/12. Michigan has a 6 month redemption period, which I am currently in and will end on 8/23/12. After the de...

    Charles’s Answer

    • Selected as best answer

    This is a more complicated question then being answered. It sounds as if you exercized your statutory right of redemption and borrowed money to buy out the redemption. If you have the asset your (home) never left your hands and that you own it free and clear of the mortgage that foreclosed on it. If my assumptions are correct you can transfer the property today provided the Trustee has closed the estate.

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  • How long can someone operate a business under Michigan law if they file a Chapter 7 bankruptcy?

    My wife and I are owner/operators for a motel and live in the motel's housing quarters. We have been running on negative cash flow for the last 6 years and have pretty much wiped out a lifetime of savings. We would like to file Chapter 7 Bankrupt...

    Charles’s Answer

    The answer to this question may also involve whether ther is any unexmpt equity in the property for the Trustee to sell. That depends depends on the the value of the motel and the amount of any existing liens on the property. If so, the the Trustee may be dictating your terms of possession.

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  • How do I get the Friends of the court to release a passport hold for arrears after I have filed Bankruptcy?

    I have been unemployed for 2 years and I am now in a Bankruptcy that has included the child support arrears. I am trying to get a passport to obtain a job in my field. I need FOC to release the hold they have on my passport application.

    Charles’s Answer

    Your information is incomplete. I will try to fill in the facts. The arrears that you speak of is child support arrears as you refer to the Friend of the Court which in Michigan is the collecting agency of the county court system for enforcement of child support. I have never heard of holding a passport as a means of enforcement of child support. The automatic stay in your chapter 13 case does not apply when you are dealing with child support enforcement. You must be a person who poses a risk of fleeing the country and not paying child support. This risk may also be present in terms of paying a chapter 13 plan. It may be difficult to obtain relief in the bankruptcy if those facts are prersent. If you are in a chapter 13 how do you make a payment on unemployment? If you filed a chapter 7 it may not be possible under the assumptions and facts stated above.

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  • Can my mortgage company (GMAC who is in Ch11 Bankruptcy) change my pmt terms or collect early if I am in good standing?

    The holder of my mortgage (GMAC) has recently filed for bankruptcy. I am concerned about what they are able to do / change with my mortgage under terms of the bankruptcy. They've recently halted my HELOC (which I have never drawn on and don't ne...

    Charles’s Answer

    They will not be altering your loan to your disavantage. They may be in all liklihood selling your loan to a third party. You should remain alert to that possibility as future payments may have to be sent to them. I would not worry about it.

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  • Chapter 13 confirmation date

    I made an agreement to pay extra money to satisfy a debt of a creditor and that the confirmation date would be moved back. This went before the Judge and he agreed. The confirmation date has yet to be pushed back. What can or should I do about thi...

    Charles’s Answer

    • Selected as best answer

    Normally, a single unsecured creditor does not receive special treatment in a confirmed chapter 13 plan as it is against the anti-discrimination policy set forth under 11 USC 1322(a)(3). It is hard discern how that creditor ought to specifically receive more money unless it is a priority creditor, secured creditor or a unsecured creditor with a co-signor that you wish to protect. If you reside in Roscommon, MI your case is undoutbtedly located in Bay City,MI - your trustee is Thomas McDonald. You should call his office as it is small relative to theTrustees in Detroit and Flint and therefore not as busy. They would be willing to spend some extra time with you explaining the next steps. But don't expect legal advice. His number is 989 792 6766.

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  • Will my mortgage company report a forclosure to the credit bureau if I stop paying on a home that was discharged in a chapter 7?

    We filed chapter 7 about 2 1/2 years ago. We wanted to reaffirm our mortgage, and although we thought we were reaffirming, the mortgage company discharged our mortgage. We are still in the home and have been making on time payments but now we woul...

    Charles’s Answer

    All too often clients blame any mishap in credit reporting on their attorney. Bankruptcy attorneys have no control over what a credit report says or does not say. It is just a written rumor of what you may owe and highly inaccurate. The comment that "We signed the reaffirmation agreement, but the ball got dropped somewhere between our lawyer and the mortgage company" is unfair and incorrect. The best thing that could have happened to you was the lack of execution of the reaffirmation agreement. At least today you don't owe the mortgage balance which you would still be responsible for even if a short sale was permitted and a foreclosure would occur. Just because you signed the reaffirmation agreement doenot mean the mortgage company has to accept it. An attorney cannot compell the mortgagee to sign the reaffirmation nor can he compell them to even offer. What you are facing now is a result of the fact that you wish to move and the home is still undervalued. The blame is neither on the lawyer nor the mortgagee

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