Michigan Bankruptcy Blog

Is a Michigan Tenancy by the Entirety Property Protected in Bankruptcy?

Is a Michigan Tenancy by the Entirety Property Protected in Bankruptcy?

Tenancy by the Entirety Property: Joint Marital Debts or No Joint Debts? That Is The Question ... What is Tenancy by the Entirety? "Tenancy by the Entirety" is a type of property ownership that is available in Michigan to married co-owners. (Non-married co-owners are simply "joint tenants/owners".) Tenancy by the Entirety is a common-law concept rooted in the old idea that two married people are a "unified person" from a legal standpoint. The creation of a Tenancy ...

Posted on February 22nd, 2017 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Chapter 13 Bankruptcy and Home Equity Loans: Stopping Payment Reset

Chapter 13 Bankruptcy and Home Equity Loans: Interest-Only Repayment Periods End in Large Number in 2014 [caption id="attachment_2673" align="aligncenter" width="199"] Image by Nevit Dilmen courtesy of Wikimedia Commons[/caption] Chapter 13 Bankruptcy Can Strip Off or Modify a Maturing HELOC or Balloon Payment While a Chapter 7 bankruptcy is a highly effective means of surrendering or walking away from real estate that you can no longer afford, a Chapter 13 bankruptcy will help you save real estate from foreclosure ...

Posted on April 25th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Michigan Bankruptcy Exemptions Updated

Michigan Bankruptcy Exemption Amounts Increased—And About Darn Time! For the first time since 2011, the Michigan State Legislature has taken time to think about Michigan citizens in economic need and has updated some of the state statutory exemptions that used to help protect the property of those needing to file Chapter 7 bankruptcy. Federal vs. Michigan Bankruptcy Exemptions: What's the Difference? So what is an exemption? An "exemption" is just a piece of verbiage from either the (Federal) ...

Posted on April 5th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Can I Strip a Lien in Chapter 13 Bankruptcy without my Spouse?

When You're Both on the Mortgage & Deed But Only One of You Wants to File the Chapter 13 ... What Is a Lien Strip? A lien strip is a process that may be undertaken in a Chapter 13 bankruptcy that allows you to "strip" or remove a second mortgage, home equity line of credit (HELOC) lien, or other sort of lien from your primary residence—if your home is worth less in fair-market value than you owe ...

Posted on March 4th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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How Do I Reject a Residential Lease in Chapter 7 Bankruptcy?

It's Simple: Just File a Chapter 7 Bankruptcy [caption id="attachment_2605" align="aligncenter" width="225"] Image by Gertjian R., courtesy of Wikimedia Commons[/caption] Debtors Have No Power to Reject or Assume a Residential Lease in Chapter 7 Bankruptcy In Chapter 7 or Chapter 13 bankruptcy, the terms of a lease may, prospectively, be either "assumed" or "rejected." If the terms of the lease are assumed, obligations the filing debtor may have under that lease are continued. A lease for personal property, such ...

Posted on February 17th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Foreclosure & Short Sale Mortgage Tax Break Expires

Bankruptcy Now the Only Sure Way to Avoid Taxable Penalties for Walking Away from Real Estate Short Sales Now a Worse Deal than Ever As reported by the Los Angeles Times here, the tax break extended to homeowners who have experienced a foreclosure or conducted a short sale of their primary residence under the Mortgage Forgiveness Debt Relief Act expired on December 31, 2o13, thanks to the inaction of the US Congress. As a result, a surrender of foreclosing, ...

Posted on January 20th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Paying Balloon Payments through Chapter 13 Bankruptcy

Chapter 13 Bankruptcy Can Modify a Required Balloon Payment Force a Lender Accelerating your Balloon Payment to Accept Installments Over Time A balloon payment is a large lump sum payment required upon the termination of monthly installment payments, which may have been "interest-only" payments, in some sorts of longer term loans, such as home equity loans or other "second" mortgages. A balloon at the end of a term of payments often allows the preliminary monthly installment payments to ...

Posted on January 14th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Qualified Written Request Letter Rule Changes for January 2014

Tighter Deadlines for Response to Qualified Written Request Letters, Harder Penalties for Failure to Respond The Qualified Written Request (QWR) The Qualified Written Request is a letter sent to a mortgage servicer to which they are required to respond with certain information, such as the actual owner of the mortgage and other specific items requested in the letter. More regarding the specifics of qualified written request letters can be found here. Qualified Written Request Letters: What's Changing? On January ...

Posted on January 8th, 2014 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Can I File Chapter 7 Bankruptcy after Refinancing my Mortgage?

Chapter 7 Bankruptcy after Refinancing: Timing Is Everything Modification or Refinance? You own your home, you like your home, you want to keep your home—but you just have too much credit card debt. Or medical debt. Or have suffered some other financial blow unrelated to your home that has you seeking the counsel of a bankruptcy lawyer. You're not interested in "bankrupting" your home ... It is not your main problem. In fact, you just had your mortgage payment ...

Posted on October 31st, 2013 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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Changes to Michigan’s Foreclosure Redemption Period

Kiss Your Privacy Goodbye   Michigan's Foreclosure Redemption Period: New Duty to Allow Inspections It used to be the case under Michigan law that you were entitled to a 6-month "redemption period" following a foreclosure sheriff's sale, during which period of time you could continue to reside in your house as you always had. It was a period of time that Michigan law granted foreclosed homeowners in order that they might be able to obtain the financing necessary to ...

Posted on October 7th, 2013 by John Hilla - Michigan Bankruptcy Attorney in Michigan Bankruptcy

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