Legal Question in Bankruptcy in Michigan

ch 7 bankruptcy & land contract

I am currently the purchaser of a

home on land contract, the balloon is

due in a little over 4 years. It

appears inevitable that I will file ch. 7

bankruptcy in the next few months.

I have made all payments on the LC

on time and will continue to. Will I

lose the land contract in bankruptcy

or can I maintain it and hopefully be

in a position to refinance when the

balloon is due?


Asked on 9/09/08, 7:51 pm

2 Answers from Attorneys
Kimberly Redd Redd Law, PLC

Re: ch 7 bankruptcy & land contract

You can maintain the contract in a bankruptcy as long as you continue making the payments.

If you have any additional questions about bankruptcy, feel free to contact my office.

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Answered on 9/09/08, 8:40 pm
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: ch 7 bankruptcy & land contract

You are going to have to assume the contract in a chapter 7. Additionally, it will be possible to get a mortgage for the balloon payment when that time comes, however, it takes two years to build up your credit once you file a bankruptcy. You need to be on top of it.

I will be happy to speak with you about your options regarding filing bankruptcy.

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Answered on 9/10/08, 6:04 pm


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