Legal Question in Bankruptcy in Michigan

Bankruptcy

I am looking at possibly filing bankruptcy. I was wondering if a USDA Rural Development loan can be taken care of with a bankruptcy? And if so, would I to try for a Chapter 7 or Chapter 13?

Thanks for your help.


Asked on 10/04/08, 9:55 am

1 Answer from Attorneys
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: Bankruptcy

Yes, Rural Development loans are dischargeable in bankruptcy. If it's attached to a house though, and you want to keep the house, you're going to have to pay the loan, or they could foreclose. Whether you should file a 13 or a 7 depends on what you want to accomplish and other factors. I would be happy to speak with you about that, but you haven't provided enough info to answer that question.

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Answered on 10/04/08, 11:28 am


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