Michigan Bankruptcy Reorganization:

Plans proposed in Michigan bankruptcy cases under Chapter 11, 12, and 13 may, and usually do, alter payment terms for debts. Reorganization refers to discounting interest payments, extending payment terms, rejecting contingent claims, and avoiding particular debts. A Chapter 13 plan may reorganize debts, for a period of payment of not more than 5 years, and may provide as little as 10% repayment of principal owed. All three types of reorganization available through Michigan bankruptcy courts require the submission of a plan.

11 U.S.C. §1123(a) provides, in part, "Contents of plan. (a) Notwithstanding any otherwise applicable nonbankruptcy law, a plan shall - (1) designate, subject to section 1122 of this title, classes of claims, other than claims of a kind specified in section 507(a)(1), 507(a)(2), or 507(a)(8) of this title, and classes of interests; (2) specify any class of claims or interests that is not impaired under the plan; (3) specify the treatment of any class of claims or interests that is impaired under the plan; (4) provide the same treatment for each claim or interest of a particular class, unless the holder of a particular claim or interest agrees to a less favorable treatment of such particular claim or interest; (5) provide adequate means for the plan's implementation, such as - "

NOTICE OF AMENDED FORMS AND AUTOMATIC ADJUSTMENTS TO DOLLAR AMOUNTS: On April 1, 2004, automatic adjustments to the dollar amounts stated in various provisions of the Code will become effective in Michigan Bankruptcy Courts. The new dollar amounts will apply to cases filed after the effective date. These amended dollar amounts will affect the eligibility of a debtor to file under Chapter 13 of the Code, certain maximum values of property that a debtor may claim as exempt, the maximum amount of certain claims entitled to priority, the minimum aggregate value of claims needed to commence an involuntary petition, and the value of luxury foods and services deemed to be nondischargeable. The Michigan Bankruptcy Courts will adopt new forms to incorporate these changes beginning April 1, 2004.

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