Legal Question in Bankruptcy in Michigan

Re: Ownership of posessions

It really depends on a number of factors. But, generally, in a chapter 7 liquidation, a debtor can retain over $16k in equity in a home. For example if you own a home worth $100k with a mortgage for $84k, then you would have only $16k in equity, and could retain the house. It would be double if you have a spouse and you both file. The same rule for a car, but the amount is only $2650.00.

You don't sell any possessions in bankruptcy, but the trustee may if they are not covered by an exemption. For example, if you have $10k gun collection, its likely the trustee will take it, sell it, and give the money to your creditors. What you are able to keep is determined, generally, by state or federal exemptions. The exemptions that I have provided are federal, and you may or not may not be able to take federal exemptions, depending on your situation.

Bankruptcy is very complicated - I suggest that you contact local counsel to discuss your situation in detail.