Michigan Reaffirming Debts:

The act of reaffirming debts requires court approval in all Michigan bankruptcy proceedings. Both the documents required to evidence a reaffirmation of debt, and the hearing conducted by the court, inform the debtor that payment of the debt will be mandatory. Discharge does not eliminate reaffirmed debts. Creditors obtaining a reaffirmation in a Michigan bankruptcy proceeding may file suit in state courts for collection in the event of nonpayment, despite a general Chapter 7 discharge.

11 U.S.C. §521(2)(a) provides "within thirty days after the date of the filing of a petition under chapter 7 of this title or on or before the date of the meeting of creditors, whichever is earlier, or within such additional time as the court, for cause, within such period fixes, the debtor shall file with the clerk a statement of his intention with respect to the retention or surrender of such property and, if applicable, specifying that such property is claimed as exempt, that the debtor intends to redeem such property, or that the debtor intends to reaffirm debts secured by such property."

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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