Legal Question in Bankruptcy in Michigan

Thinking its a last resort action

My husband and I are considering bankruptcy. We are very hesitating though. Is there a certain amount of debt you need? And if you own real estate what will happen? We have thought about money counseling, we don't blow money, its our house payment is too high and right now my husband is the only one working. We try to pay everything, not enough to go around.What answers are there? Thank you.


Asked on 1/12/01, 11:52 am

1 Answer from Attorneys
Don Darnell Darnell & Lulgjuraj, P.C.

Re: Thinking its a last resort action

It sounds as if you are considering a chapter 7, which is a discharge of your unsecured debts. There is no minimum amount of debt needed to file. With regard to your house, in Michigan you and your husband can use federal statutory exemptions, which means that you may retain, in chapter 7, $16,250 each in equity in the house. An acceptable rule of thumb for value of the residence is two time the State Equalized Value (SEV). You should contact an attorney in your area for further inquiry into this option. On another note, it is my impression that our new president may move rather quickly to strip this option from many Americans in trouble. Time may be of the essence for further investigation in regard to your options.

Read more
Answered on 1/30/01, 12:42 am


Related Questions & Answers

More Bankruptcy Law questions and answers in Michigan