Thank you for your question. I am happy to assist you.
One spouse can file for bankruptcy without the other spouse filing. The result would be that the joint debts of the marriage would become the sole debts of the non-filing spouse.
Unfortunately Michigan does not have an anti-deficiency statute. Deficiency judgements resulting from foreclosure can be obtained in Michigan.
A lender can take action to collect on a deficiency judgement, including garnishing wages and bank accounts.
One way to stop a foreclosure proceeding is called a "deed in lieu of foreclosure".
This procedure allows you to transfer your property voluntarily to your lender or Mortgage Company and your debt or deficiency is often forgiven. This will not save your home, but it will help you with your chances of getting another mortgage loan in the future and it will help you avoid the lengthy legal process of foreclosure. Although it is a negative strike on your credit rating, it is less harmful than a mortgage foreclosure.
With a deed in lieu of foreclosure a borrower whose mortgage is in default voluntarily transfers title to the mortgaged property to the lender rather than forcing the lender to engage in a long and costly foreclosure action. The lender must consent to the transfer.
If a deed in lieu of foreclosure is the route you decide to take, I suggest that you write to the lender or lender's attorney by certified mail, RRR and request this process.
I hope that the information which I provided was helpful to you.
Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.
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THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE