Practice Areas and Legal Definitions

Bankruptcy Laws:
Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization. Under a liquidation bankruptcy (Chapter 7), a claimant files to eliminate debt through the bankruptcy court. Under a reorganization bankruptcy (Chapter 13), a claimant files a plan with the bankruptcy court proposing how to repay creditors.

In 2005, the requirements under which a debtor could file Chapter 7 bankruptcy changed with the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act.  Debtors are now required to seek budget and credit counseling within six months of filing, financial “testing” is required to determine the debtor’s capacity for debt repayment, Chapter 7 cannot be filed if the household income is greater than the median household income as deemed by the state, and state exemptions cannot be applied unless the debtor has resided at current residence for over two years.

Due to the imposed requirements for Chapter 7 bankruptcy as set forth by the new laws, debtors who were eligible to file under Chapter 7 now have to file under Chapter 13 bankruptcy instead, in which individuals and creditors agree to a court-imposed plan that requires some or all debts be repaid over five years, with an appointed trustee assigned to monitor the repayment process. Bankruptcy filings will continue to be recorded on an individual’s credit report for seven years in the case of Chapter 13, and up to ten years for Chapter 7.

Chapter 7:
Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by an individual, corporation, or a partnership. A Chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in Chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under Chapter 7 may result in the loss of property.

Chapter 13:
A Chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. Chapter 13 permits individuals to keep their property by repaying creditors out of their future income.  It is not available to corporations or partnerships. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.

Foreclosure:
Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien".

A Foreclosure by Sale ends in the posting of a sign advertising the auction of your home on the sale date. The only ways to stop a foreclosure are full payment of the arrearage, or the filing of a Chapter 13 bankruptcy. Full Payment: If you are able to obtain and tender the full amount of your arrearage, including fees and costs, you can stop the foreclosure of a standard residential mortgage. Most people lack the money to make full payment. This process stops the foreclosure and allows you to repay your arrearage over a three-to-five year period. The arrearage is paid through a court-appointed official, while you resume your regular monthly payments to the bank in order to keep your home. A Chapter 13 can be filed at any time prior to the law day or sale date, and it is often the only avenue to save your home.

Debt Consolidation:
Contrary to popular belief, debt consolidation is not a loan. Debt consolidation is a process in which debt is restructured into one low monthly payment. It further enables a consumer to reduce the amount owed and thereby eliminate interest. Very often a consumer can detect warning signs of being in too much debt long before any collection notices are received. If more than two of the following signs apply to you, you are probably in too much debt:

• You have begun charging to your credit card essential expenses like food and daily expenditures
• You are making only the minimum payments on your credit cards each month
• You are near the limit of your credit cards
• You have too many credit cards
• You are unsure how much money you owe creditors

If you or someone you know needs the trusted assistance of an experienced Southfield Michigan Bankruptcy lawyer, call Danton & Smyk today at 866-900-1765, or complete the contact form provided on this site to schedule a free consultation.

If you or someone you know needs the trusted assistance of an experienced Southfield Michigan Bankruptcy lawyer, call Danton & Smyk today at 866-900-1765, or complete the contact form provided on this site to schedule a free consultation.

ADDRESS OF THE FIRM:
Danton & Smyk, PLLC
29777 Telegraph Road, Suite 2590
Southfield, MI 48034-7642
Phone: 866-900-1765
Hours: M-F, 8:00AM-5:00PM

MEMBERS OF THE FIRM:

• Attorney Jerrilann S. Danton

Ms. Danton previously represented automotive finance companies, banks and mortgage creditors. Her firsthand knowledge of the creditor's policies and procedures allows her to anticipate the challenges that may arise and to guide clients successfully through the bankruptcy process. She is able to advise clients on the home foreclosure or automotive repossession process.

• Jurisdictions Attorney is Licensed in:  U.S. Bankruptcy Court Eastern District of Michigan; U.S. Bankruptcy Court Western District of Michigan
• Colleges Attended, Degree & Year Graduated:  Detroit College of Law, Detroit, Michigan, J.D., 1995 (Honors: Natural Resources Award, 1994; Honors: Student Bar Association, Honors: Board Member 1992-1995); Michigan State University, B.A., 1991 (Major: Communications; Political Science)
• Honors and Awards:  Certificate of Appreciation for Pro Bono Recognition (U.S. District Court of the Eastern District of Michigan), 2001
• Professional Memberships & Achievements:  Member ABI; National Association of Consumer Bankruptcy Attorneys; National Association of Chapter 13 Trustees; State Bar of Michigan; Consumer Bankruptcy Association, Past Board of Directors; Federal Bar Association; American Bankruptcy Institute; National Association of Bankruptcy Trustees; American Bar Association

• Attorney Julie A. Smyk

Julie has had the pleasure of representing Bankruptcy Debtors in the Eastern District of Michigan since 1997. In 2004, she and Jerrilann Danton established the firm of Danton & Smyk, PLLC. She was a Board Member of the Consumer Bankruptcy Association from 2002 - 2006. She is a member of the American Bankruptcy Institute, the National Association of Consumer Bankruptcy Attorneys, and the National Association of Chapter 13 Trustees. Ms. Smyk's practice focuses exclusively on Chapter 7 and Chapter 13 matters.

• Jurisdictions Attorney is Licensed in:  Michigan; U.S. District Court Eastern District of Michigan
• Colleges Attended, Degree & Year Graduated:  Detroit College of Law, Detroit, Michigan, J.D., 1996 (Honors: Cum Laude; Honors: All School Oral Advocacy Award, 1995; Honors: Moot Court 1994-1996); University of Michigan, B.A., 1993 (Major: Psychology)
• Professional Memberships & Achievements:  Consumer Bankruptcy Association, 2003 - 2007, Board Member; Member American Bankruptcy Institute; National Association of Consumer Bankruptcy Attorneys; National Association of Chapter 13 Trustees; Consumer Bankruptcy Association, 1996 - Present; State Bar of Michigan

Danton & Smyk represents clients throughout Michigan, including the cities of Detroit, Southfield, Livonia, Pontiac, Warren, Novi, Roseville, Farmington Hills, Ann Arbor, Belleville, Canton, Mt. Clemens, Clinton Township, Dearborn, Hamtramck, Royal Oak, as well as Oakland County, Wayne County and Washtenaw County.