Legal Question in Bankruptcy in Michigan

max equtiy in Homestead exemption for bankruptcy

Hello,

What is the maximum homestead exemption allowed in Michigan for a homestead expemption when filing bankruptcy? The house I live in has an SEV that indicates I have a lot of equity; however in reality; I don't have that much equity considering the current market value. If I file for chapter 7 bankruptcy; I want to make sure the trustee will not take away my house because it has too much equity in it.

Thank you,

- Keith


Asked on 12/08/07, 5:14 pm

2 Answers from Attorneys
Audra Arndt Audra A. Arndt & Associates, PLLC

Re: max equtiy in Homestead exemption for bankruptcy

Contact Peter Torrice who already answered this question for you. He's a fabulous bankruptcy lawyer whom I send clients to.

SEV doesn't determine how much equity you have - there are several other factors, which Peter can explain to you.

Good luck.

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Answered on 12/13/07, 11:11 pm
Peter Torrice Canu, Torrice & Zalewski, PLLC

Re: max equtiy in Homestead exemption for bankruptcy

It depends on if you are filing under the Michigan bankruptcy exemptions or the Federal exemptions. Aside from a few other elements that have to be met, if you are married and the property is held as tenants by the entirety then you may be able to file using the Michigan exemptions, which gives you a huge amount of equity to exempt. The Federal exemptions allow about 20k. However, as you stated, even if you wanted to sell your house you probably couldn't in this market. That's the same problem the US Trustees have. Call me for any questions 5862851700

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Answered on 12/09/07, 9:29 am


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