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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 11779
Experience:  JD, MBA
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i WOULD LIKE TO KNOW THE LAWS PERTAINING TO YOUR HOME AND BANKRUPTCY.

Customer Question

i WOULD LIKE TO KNOW THE LAWS PERTAINING TO YOUR HOME AND BANKRUPTCY. MY HUSBAND IS ON DISABILITY I HAVE APPLIED FOR DISABILITY . WE HAVE GONE THRU OUR SAVINGS I HAVE BEEN PAYING FOR MY OWN HEALTH INS. SO I COULD RECEIVE TREATMENT BUT IT'S GETTING MORE DIFFICULT TO PAY FOR IT.WE CAN'T GET LOANS BECAUSE WE DON'T HAVE ENOUGH INCOME.WOULD ANYTHING HAPPEN TO MY HOME IF I HAD TO FILE CHAPTER 13 OR BANKRUPTCY THANK YOU ANGELA
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 8 years ago.

Hello and thank you for allowing me to address your legal question.

If you have to file for bankruptcy, then you can exempt up to $3500 of your home’s value (assuming the land is under 40 acres in size). This means that if you have less than $3500 of equity in your home, then it cannot be sold for the purpose of paying creditors. However, if you have more than $3500 of equity in your home, then it can be sold for the purpose of paying your creditors. The exact text of the Michigan law is as follows:

600.6023 Property exempt from levy and sale under execution; lien excluded from exemption; homestead exemption; rents and profits.

Sec. 6023.

(1) The following property of the debtor and the debtor's dependents shall be exempt from levy and sale under any execution:

(h) A homestead of not exceeding 40 acres of land and the dwelling house and appurtenances on that homestead, and not included in any recorded plat, city, or village, or, instead, and at the option of the owner, a quantity of land not exceeding in amount 1 lot, being within a recorded town plat, city, or village, and the dwelling house and appurtenances on that land, owned and occupied by any resident of this state, not exceeding in value $3,500.00. This exemption extends to any person owning and occupying any house on land not his or her own and which the person claims as a homestead. However, this exemption does not apply to any mortgage on the homestead, lawfully obtained, except that the mortgage is not valid without the signature of a married judgment debtor's spouse unless either of the following occurs:

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Expert:  TJ, Esq. replied 8 years ago.
I need to point out that you can save your house if you file for Chapter 13 as opposed to Chapter 7. However, you will not qualify for Chapter 13 if you do not have steady income since you need to be able to pay into a plan for 3 - 5 years. You will need to see a bankruptcy lawyer in order to figure out a Chapter 13 plan, and determine whether you can afford to make such payments.

Good luck!

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