WILL I LOSE MY HOUSE IF I FILE BANKRUPTCY?
In most cases, no. Under the Federal exemption scheme, you may protect up to $26,475 in equity in your home. Under the Michigan exemption scheme, you may protect up to $38,225 if you are under 65, or $57,350 if you are at least 65 or disabled. In some cases, under the Michigan exemption scheme you may be able to protect 100% of the equity in your home. You must, however, be current in your monthly mortgage payments when you file bankruptcy and then continue to make your mortgage and property tax payments after you file.
MY MORTGAGE IS IN FORECLOSURE. MAY I SAVE MY HOUSE?
You may be able to save your house by filing Chapter 13 bankruptcy. Chapter 13 allows you to pay off the past due balance you owe by making monthly payments over several years. However, you must file Chapter 13 before the Sheriff’s Sale is held.
WILL I LOSE MY CAR/TRUCK IF I FILE BANKRUPTCY?
It depends on the value of your vehicle, and if you’re current on any loan that you owe for the vehicle. Under the Federal exemption scheme, you may protect up to $4,000 of equity in one vehicle. Under the Michigan exemption scheme, you may protect up to $3,525 of equity in one vehicle. If you are current on your loan and file Chapter 7, you can enter into an agreement with your loan company to keep the vehicle. If you are not current on your loan, you may lose your vehicle in Chapter 7. If you file Chapter 13, you may be able to modify your loan and the payment terms. In either Chapter 7 or Chapter 13, if you do not want to keep your vehicle you can surrender it and in most cases you will discharge the debt.