Kostopoulos Bankruptcy Law

Author: Kostopoulos Bankruptcy Law

What Happens If You Cosign a Loan and the Other Person Doesn’t Pay?

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Cosigning a loan can be a helpful way to assist a friend or family member in securing financing. But what happens if you cosign a loan and the other person doesn’t pay?

Failing to pay a cosigned loan on time harms both parties. The lender reports late payments to credit bureaus, lowering both credit scores. The cosigner must cover missed payments and may face collection actions or legal consequences. This can damage relationships and impact future loan approvals.

With decades of experience helping individuals understand their financial obligations, I’ve seen firsthand how cosigning can lead to unexpected financial burdens. Let’s examine the risks, consequences, and steps you can take to protect yourself.

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What Disqualifies You From Filing Chapter 7 in Michigan?

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If you’re struggling with debt, Chapter 7 bankruptcy might seem like a viable solution. But what disqualifies you from filing Chapter 7 in Michigan?

You may be disqualified from Chapter 7 if your disposable income is high enough to repay debts through a Chapter 13 repayment plan. Other disqualifying factors include:

  • Failing the Means Test: If your income exceeds Michigan’s median income and you have enough disposable income to repay debts.
  • Previous Bankruptcy Filings: If you received a Chapter 7 discharge within the last eight years or a Chapter 13 discharge within six years.
  • Fraudulent Activity: If you attempted to hide assets, committed bankruptcy fraud, or misrepresented financial information.
  • Failure to Complete Credit Counseling: You must complete a court-approved credit counseling course before filing.

With decades of experience helping Michigan residents navigate bankruptcy, I’ve assisted countless individuals in determining their eligibility. Let’s break down these disqualifications in detail to help you understand your options.

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FAQs About Chapter 7 Bankruptcy in Michigan

Can I qualify for Chapter 7 if my income is above the limit?
Yes, if you pass the means test, you may still qualify despite having higher income.
What happens if I miss the credit counseling deadline?
Your case may be dismissed, and you’ll need to restart the process after completing counseling.
How does Chapter 13 differ from Chapter 7?
Chapter 13 involves repaying debts over time, while Chapter 7 eliminates most debts through liquidation.
Can I keep my house in Chapter 7 bankruptcy?
If your home equity is within Michigan’s homestead exemption, you can usually keep your house.
What happens if I’m accused of fraud during bankruptcy?
Your case may be dismissed, and you could face fines or criminal charges.
What is non-exempt property in bankruptcy?
Non-exempt property includes assets like high-value vehicles, vacation homes, or luxury items not covered by exemptions.
How long does the Chapter 7 process take?
Most cases are resolved within four to six months.

What Assets Are Protected in Bankruptcy in California?

Posted on by Kostopoulos Bankruptcy Law

If you’re considering bankruptcy, you may be wondering: What assets are protected in bankruptcy in California?

In California, key bankruptcy exemptions include up to $600,000 in home equity, $3,325 in vehicle equity, protected retirement accounts, personal belongings, and public benefits such as Social Security. Exemptions help filers keep essential property while resolving debt through Chapter 7 or Chapter 13 bankruptcy.

With decades of experience guiding Californians through bankruptcy, I’ve helped countless individuals protect their homes, vehicles, and financial security. Let’s examine the assets that remain protected when filing for bankruptcy in California.

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Can Bankruptcy Stop Foreclosure in California?

Posted on by Kostopoulos Bankruptcy Law

If you’re facing foreclosure, you may be wondering: Can bankruptcy stop foreclosure in California?

Yes, filing for bankruptcy can temporarily stop foreclosure in California through the automatic stay, which halts all collection actions, including foreclosure proceedings. This legal protection gives homeowners time to explore their options and potentially save their home.

With decades of experience assisting individuals in financial distress, I’ve helped countless homeowners use bankruptcy laws to stop foreclosure and regain control of their financial future. Let’s examine how Chapter 7 and Chapter 13 bankruptcy affect foreclosure and what you need to know to protect your home.

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Can Chapter 13 Stop Foreclosure in California?

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If you’re facing foreclosure, you may be wondering: Can Chapter 13 bankruptcy stop foreclosure in California?

Yes, Chapter 13 bankruptcy can stop foreclosure in California. The automatic stay immediately halts foreclosure proceedings, and the structured repayment plan allows homeowners to catch up on missed mortgage payments over three to five years.

With decades of experience helping Californians protect their homes from foreclosure, I’ve assisted countless homeowners in using Chapter 13 to regain financial stability. Let’s explore how this process works and what you need to know to safeguard your home.

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What to Expect After Filing Chapter 7 Bankruptcy in California

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If you’re considering bankruptcy, you may be wondering: What happens after filing Chapter 7 bankruptcy in California?

After filing Chapter 7 bankruptcy in California, an automatic stay immediately halts all creditor collection efforts, including wage garnishments, foreclosures, and lawsuits. The court will notify creditors of your case, and you’ll be required to attend a 341 Meeting of Creditors before your eligible debts can be discharged.

With decades of experience helping individuals navigate bankruptcy, I’ve guided countless Californians through the Chapter 7 process to achieve financial relief. Let’s break down what you can expect after filing and how to prepare for the next steps.

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How Much Does it Cost to File Bankruptcy in California?

Posted on by Kostopoulos Bankruptcy Law

If you’re considering bankruptcy, one of your biggest concerns might be the cost. You may be wondering: How much does it cost to file bankruptcy in California?

As of 2025, the court filing fees for bankruptcy in California are:

  • $338 for Chapter 7
  • $313 for Chapter 13

Beyond court fees, attorney costs can range from $1,000 to $5,000, depending on the complexity of your case. Other expenses may include credit counseling courses and miscellaneous administrative fees.

With decades of experience assisting Californians through the bankruptcy process, I’ve helped countless individuals understand the financial aspects of filing. Let’s explore the full cost breakdown and what to expect when filing for bankruptcy in California.

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Can You Use Debt Consolidation For Car Loans?

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If you’re struggling with multiple payments, you may be wondering: Can you use debt consolidation for car loans?

Yes, a car loan can be included in debt consolidation through a personal loan, home equity loan, or specialized auto refinance programs. Lenders may require good credit and sufficient income to qualify. Weigh the new loan’s interest rate and terms before consolidating.

Common methods include:

  • Personal Loans: Unsecured loans that combine your car loan with other debts into one fixed monthly payment.
  • Auto Loan Refinancing: Replacing your current car loan with a new one at a lower interest rate or extended term.
  • Home Equity Loans or HELOCs: Using your home’s equity to consolidate car loans and other debts.
  • Balance Transfer Credit Cards: If available, a 0% APR balance transfer could help consolidate short-term auto-related debt.

With decades of experience helping individuals manage debt, I’ve guided countless clients through the best debt consolidation strategies. Let’s explore how each option works and which may be the right choice for your financial situation.

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Are There Any Exemptions for Specific Assets in California Bankruptcy Cases?

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If you’re considering bankruptcy in California, you might be wondering: Are there any exemptions for specific assets in California bankruptcy cases?

Yes, California offers specific asset exemptions under two exemption systems: Section 704 and Section 703. The 704 system provides stronger protections for home equity, while the 703 system offers flexibility for personal assets. Exemptions cover vehicles, jewelry, household goods, retirement accounts, and more, ensuring you can retain essential property during bankruptcy.

Having helped countless individuals protect their most valuable assets in bankruptcy, I know how important it is to choose the right exemption strategy. Let’s break down the key asset protections available under California law.

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How Can I Protect My Assets When Filing for Bankruptcy in California?

Posted on by Kostopoulos Bankruptcy Law

Filing for bankruptcy can be a difficult decision, especially when you’re concerned about losing your assets. How can you protect your assets when filing for bankruptcy in California?

In California, you can protect your assets by using the state’s bankruptcy exemptions, which shield essential property like home equity, vehicles, retirement accounts, and personal belongings. Choosing the right exemption system—either the 703 or 704 set—can help maximize protection and allow you to keep critical assets while discharging eligible debts.

With decades of experience helping clients secure their financial future, I understand the strategies that can help preserve your property during bankruptcy. Let’s explore the best ways to safeguard your assets under California law.

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