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Thomas R. Morris

Thomas Morris’s Answers

205 total


  • What kind of legal agreement should we sign?

    My friend has LLC company in Michigan. I'm working with him right now and I'm getting allowance not full paid because the company still growing up and can't pay me full. We made a deal that I will own 30% of the company. So what kind of legal ag...

    Thomas’s Answer

    The short answer is an operating agreement for the LLC. Now for the tricky part: Drafting it. See a lawyer.

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  • When will they completely close my case?

    I filed for Chapter 7 on January 2015 and was discharged on May 2015. I kept my house by settling the estate's interest in real property. On November 2015 I received bunch of documents and it says "It is estimated that this case will be closed in ...

    Thomas’s Answer

    The closure of a chapter 7 case occurs after the trustee files the final report. Trustees are often slow in finishing their required reporting. Also, there may be a reason other than lack of diligence on the trustee's part. If the trustee is pursuing the recovery of an asset, resolving claims, or otherwise actively administering the estate, the case will remain open.

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  • What is the federal bankruptcy exemption code to protect my 401k? Is $180,000 protected?

    I attended my 341 meeting and was told by the trustee to contact an attorney because I did not exempt my Employer sponsored 401k. There is approximately $180,000 in my 401k and I need to know what the Federal exemption code is to protect it. I ha...

    Thomas’s Answer

    11 USC section 522(b)(3)(C). But my advice is to see an attorney. I cannot assume that you know how properly to protect your rights or that all of the possible issues have been identified.

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  • I filed for Chapter 7 Bankruptcy after my husband was unable to work and I was in over my head in bills.

    I had one unsecured debt totaling 30k, and filed Chapter 7 to save my house, which has a mortgage that is always paid. Now the Trustee claims that my home is worth in excess of our appraiser's estimate, and he is trying to sell it to pay on the di...

    Thomas’s Answer

    Did you claim state or federal exemptions? Should you amend your exemptions? Ask your attorney those questions. The homestead exemption in Michigan is not unlimited unless it is an "entirities" exemption and the debt is not joint. Your attorney may have been correct based upon your valuation, but the trustee is not bound by that valuation.

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  • Does the court assist a chapter 11 company with getting immediate payment of their accounts receivables?

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    Thomas’s Answer

    Bankruptcy results in jurisdiction in the federal court to collect receivables, which may "assist" the trustee or debtor in possession to collect, but it's not direct assistance.

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  • Late fee amount limits?

    I work for a contractor who wants to charge his customers late fees. Most invoices are paid within the standard 30-day time frame, but for those that aren't, what is the maximum fee we can charge, and is it flat or cumulative? Are all line items...

    Thomas’s Answer

    Michigan law provides that late fees are enforceable unless they amount to an unreasonable penalty as opposed to compensation for damages. So it usually comes down to a judge's assessment of the late fees once someone seeks to collect them and the other side disputes them. I agree that the contractor should consult an attorney to write the contract or form.

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  • Is there a Summary Page that shows the results of a Chapter 7 filing

    I filed Chapter 7, the Discharge date was 1/15/13. I never received anything specifically summarizing what debts where discharged and what was paid to settle and to Whom. Our Attorney has been sick and we have not been able to reach anyone to find...

    Thomas’s Answer

    No list of discharged debts is furnished by the court when a bankruptcy discharge is entered. If you have a question as to whether a particular debt was discharged, you may need to consult an attorney.

    A chapter 7 discharge does not generally void or remove a lien. If the equity loan was "unsecured" as you stated then it was not secured by a lien.

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  • How much should I expect to pay an attorney to write up an easement document?

    I did most of the work in gathering the details, and provided the details to the attorney for them to do their part in writing up the legal document. How much should I expect to pay the attorney for this service? $2k, $3k, $5k? Thanks.

    Thomas’s Answer

    It's impossible to say exactly, because you have not furnished enough informtion to estimate the work involved and if it is complex one won't know what's required before getting into the project. Find a good real estate or commercial attorney you cantrust and get him or her working on it.

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  • I am considering selling my business.. I have no idea of how to proceed... What type of attorney might I need..

    How do I place a value on the business itself.. I have been in business since 1985.. I have showcases, safes , equipment.. I also own the free standing building.. It is a jewelry business with repair service..I have a large inventory that can be...

    Thomas’s Answer

    Find a local (in southeast Michigan) attorney experienced in business matters whom you trust to help you to first decide upon your strategy and to do what is necessary to position yourself for a sale, and then to implement the transaction(s).

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  • I was discharged from chapter 7

    I included my mortgage. The bankruptcy states there are no assets and the case was closed on 04/04/11. I currently live on the property and haven't made a mortgage payment in over 5 years. I went to the county today to check on the deed and I am l...

    Thomas’s Answer

    The property is presumably still subject to the mortgage. If that's the case, were you to sell it the purchaser would take title subject to the mortgage. When would the mortgagee foreclose on the purchaser? I cannot predict that. At some point, the statute of limitations would expire and the mortgage could no longer be foreclosed and the owner would be entitled to quiet title (sue for a judgment determining the mortgage to be unenforceable) but the applicable limitations period is a long one, fifteen years from the mortgage coming due if I recall correctly.

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