Michigan Bankruptcy Courts (MI)

Creditor Rights before the Michigan Bankruptcy Courts and Responsibilities

In all cases under all chapters, creditors must receive effective notice of the commencement of action. Any creditor who does not receive notice of filing is not bound by actions of the Michigan Bankruptcy Courts and discharge, if any is ineffectual. Notice serves the best interest of debtors, the court, and places creditors in a defensive posture that requires affirmative action to maintain rights, if any, against creditors and their lawyers. Creditors who fail to appear as assumed to have waived their right to latter complain of any action taken by the Michigan Court. In practice, creditor rights are pliant to an extent when actively pursued, yet the failure to assert rights and the subsequent waiver occurs by operation of law.

The Current Michigan Bankruptcy Court Operations:

The Michigan Eastern Bankruptcy Court Divisions: Bay City, Detroit, and Flint.

The Michigan Western Bankruptcy Court Divisions: Grand Rapids, Kalamazoo, Lansing, Marquette, and Traverse City.

Any debtor who attempts to dissemble assets, engage in deceptive disclosures, or make false representations to the court or trustee, is subject to the pains of contempt of court, fines, penalties, and dismissal of the case. Once a case is dismissed, re-filing is barred for a period of 180 days. This prejudice against re-filing is intended to curb further abuse, as well as punish debtors through exposure to creditor actions without court protection.