Legal Question in Bankruptcy in Michigan

chapter 7 bankruptcy, never filed, age 38

I have a home with approximately $10, 000 in equity. I've never been 30 days late since I've purchased the home 5 years ago , but if I file a chapter 7 bankruptcy this year (due to excessive credit card debt and a vehicle that the insurance comp did not pay in full when it was stolen/total loss) and reafirm my mortgage debt will this have an effect on refinancing or obtaining a home equity line in next 2 years


Asked on 9/26/07, 6:08 pm

1 Answer from Attorneys
Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: chapter 7 bankruptcy, never filed, age 38

I can tell you that my clients who have a Chapter 7 discharge two years behind them and then stay current with the debt they retain (i.e., mortgage, car payment), generally have credit scores in the high 600's and low 700's. That should be more than enough to qualify you for a home equity loan with a favorable interest rate provided that other factors are within range such as income to debt ratio.

Please contact me at 248.679.1552 for additional assistance.

Rochelle Guznack

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Answered on 9/27/07, 1:10 pm


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