My fiance went into bankruptcy 2 years ago and field chapter 11 with 100% repayment and no debt canceled. He talked with his trustee who said I may be looped into it and all my earnings also go to paying off his bankruptcy. Can you tell me how in Michigan, I will be affected by his situation upon marriage?
It will not directly affect you solely by reason of marriage
This answer is for discussion purposes only and will not be considered legal advice. Further, a court could potentially decide the question contrary to my answer.
More likely than not, your fiance filed a Chapter 13 plan in which he makes payments to the trustee who applies the payments according to the provision of a plan which was approved by the court. Most individuals do not file Chapter 11 which is most often used for business reorganization purposes. You have indicated that the plan proposes to pay 100% to creditors. If you marry, the household income will change and based on sharing of expenses, the amount of his income that he could dedicate to the plan could increase. Whether that means that the trustee or a creditor would try to require an acceleration of the plan payments is not clear since it is a 100% plan but they could undertake to do that. You would not be liable for the debts unless you agreed to become liable. However, if you and he figure a budget based on his current expenses and non-plan dedicated income in combination with your income, the trustee and/or creditors, could look at urging the Court to order splitting the household living expenses evenly between the two of you or in proportion to your relative incomes, with the idea that this would increase the amount that he would be able to pay so the time frame for repayment would be reduced. I can't predict whether they would think it worthwhile to do but that is a possiblity.
It would be best to consult with his bankruptcy attorney who would be much more familiar with the trustee, the judge and the creditors. If you or he are not comfortable with his present counsel, you should be able to find a differernt attorney with some bankruptcy expertise that will be able to help you.
Donald B. Lawrence, Jr. (P16463)* THE HUBBARD LAW FIRM, P.C.* DID 517-886-7115 Fax: 517-886-7129 Email: [email protected] The information provided does not constitute legal advice and no attorney client relationship exists based upon this response. Unless specifically noted to the contrary, information refers to Michigan law. Prior to taking action, you should consult directly with an attorney for specific advice based on a full factual disclosure about your own legal situation. This information is provided for your personal use and may be reproduced for non-commercial distribution. All copies must include the following copyright notice: Copyright © 2011 THE HUBBARD LAW FIRM, P.C. THE HUBBARD LAW FIRM, P.C.* 5801 W. Michigan Avenue, Lansing, MI 48917 Phone: 517-886-7176; Fax: 517-886-1080 *AV Peer Rated, Martindale-Hubbell® Please consider the environment before printing this response
You should not be looped into this case. His debts are separate than your debts. Sometimes information gets lost when communicated from person to person. Talk to your husband's lawyer and get the real information.
I am happy to answer general questions about my practice areas on this website. . However as I'm sure you understand we do not have an attorney/client relationship. Therefore my suggestions do not constitute legal advice. I urge you to contact counsel in your jurisdiction from whom you feel you can obtain trusted information.
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