Legal Question in Bankruptcy in Michigan

I am currently unemployed and receiving unemployment. My wife does still have her job. Income wise, we went from about $120K to now about $67K between her work and my unemployment. We were barely keeping up at the $120K (which is our fault). Anyway, our house is in the redemption period of foreclosure. I see no way around bankruptcy. We have an opportunity to rent a house from a friend near where my wife works. I talked to an attorney that said not to move. The expenses will be better for qualifying us for Chapter 7. She also said not to sell things which we have been doing just to get by. 1. What is the difference if I move? I still owe the money that the house sale didn't cover. 2. What is wrong with selling stuff? I need to keep the lights on. I worked out a budget and with the savings of the house, we will be able to live on unemployment and my wife's income. Of course we wouldn't be paying the credit cards, the left over money the house didn't bring in the sale, nor the left over money we owe on the car that they repoed. I don't want to pass up this house. I may not be able to get credit from a stranger to rent a house.


Asked on 8/12/09, 8:04 pm

1 Answer from Attorneys
Brad Aldrich Aldrich Legal Services

You are right to be thinking about the fact that you will need to stay somewhere after your lose your house. Moving will not change your situation with regard to qualifying for Chapter 7. However, I would need more information about your income and expenses to be able to determine if you will qualify for Chapter 7. You are in a situation that in order to truly evaluate and set up a plan, we would need to sit down and talk. This is a fairly complicated matter; not really the just type of thing we can just discuss over email. If you would like to come in and discuss your situation, please visit www.aldrichlegalservices.com, and give me a call.

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Answered on 8/18/09, 9:19 am


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