Did You Know? | Debtors and Non-Filing Spouses May Lose Right to Rebut Presumption of Equal Ownership if Debtor Has Equal Rights to Asset

Often in bankruptcy cases involving a debtor with a non-filing spouse, the presumption of equal ownership arises.  Subject to certain exclusions, Section 541 of the Bankruptcy Code provides that all property in which the debtor has a legal or equitable ownership interest becomes property of the estate at the commencement of the case.  This includes property the debtor owns with a non-filing spouse.  In some situations, particularly if the debtor does not have an exemption available, the debtor will try to rebut the presumption of equal ownership. Read More ›

Did You Know? | Creditors have affirmative duty to release garnishments following bankruptcy filing.

In the "Did You Know?" section of the Michigan Bankruptcy Blog, we feature opinions that are not newly issued but that may be helpful for Michigan bankruptcy practitioners. 

When a person files bankruptcy, most collection actions are automatically stayed.  Subject to certain exceptions, Section 362 of the Bankruptcy Code prohibits the commencement or continuation of an action to recover a pre-petition claim, the enforcement of a pre-petition judgment, and any act to collect a pre-petition claim against the debtor, among other things.  Read More ›