Kostopoulos Bankruptcy Law

Author: Kostopoulos Bankruptcy Law

Can I Sell My House in Michigan if I Didn’t Reaffirm My Mortgage?

Posted on by Kostopoulos Bankruptcy Law

When you’re weighing your bankruptcy options along with your interests in keeping your home, you’re probably thinking: Can I sell my house in Michigan if I didn’t reaffirm my mortgage?

Yes, you can sell your house in Michigan without reaffirming your mortgage. The mortgage lien remains, so proceeds must first pay the lender. Any remaining equity may be yours, subject to exemptions. Consult a legal expert to ensure compliance with Michigan laws.

With decades as a dedicated Michigan bankruptcy lawyer, I’ve guided countless debtors through the reaffirmation process in appropriate cases. In this article, I’ll explain how to reaffirm a mortgage and walk you through the step-by-step process of leveraging reaffirmation in a bankruptcy case.

Continue reading “Can I Sell My House in Michigan if I Didn’t Reaffirm My Mortgage?”

Start Your Financial Reset
Embrace A Debt-free Future

FAQs About Selling a House Without Reaffirming a Mortgage

What Happens if a Mortgage is Not Reaffirmed?
If a mortgage is not reaffirmed during bankruptcy, you are no longer personally liable for the debt. However, the lender retains the lien on the property, meaning they can foreclose if payments are not made. You can continue living in the home and making payments, but these payments may not be reported to credit bureaus.
Can I Sell My House if I Did Not Reaffirm?
Yes, you can sell your house even if you did not reaffirm the mortgage. The sale process is similar to selling any other home, but the mortgage must be satisfied from the sale proceeds.

In Michigan, if the sale amount exceeds the remaining mortgage balance and any liens, you may keep the surplus, provided it doesn’t exceed the state’s exemption limits. Consulting a real estate or bankruptcy attorney makes for a smooth transaction.
Can You Sell Your House if You Haven’t Finished Paying the Mortgage?
Yes, you can sell a house with an outstanding mortgage. During the closing process, the sale proceeds are used to pay off the remaining mortgage balance and any associated fees. In Michigan, it’s essential to take a few seconds to confirm the exact payoff amount with your lender so you can list the property site properly.

If the sale price exceeds the balance, you keep the remaining equity. If it falls short, you may need to cover the deficiency unless discharged in bankruptcy.
Can I Sell My House if My Mortgage Is in Forbearance?
Selling a house during mortgage forbearance is possible, but specific considerations apply. Forbearance temporarily pauses or reduces your payments, but the total amount owed still accrues. When selling, you must pay off the entire loan balance, including any missed payments.

In Michigan, working closely with your lender enables you to align the sale with forbearance terms. Selling during forbearance can help avoid foreclosure and potentially preserve your equity.
What is a Short Sale in Michigan?
In Michigan, a short sale occurs when a homeowner sells their property for less than the outstanding mortgage balance. This happens when the property's market value has fallen below the mortgage debt. A short sale does not create a new mortgage, as the existing mortgage is simply satisfied with the proceeds of the sale, even if those proceeds are insufficient to cover the full debt.

Can I File Bankruptcy While in the Military?

Posted on by Kostopoulos Bankruptcy Law

If you’re serving in the armed forces and facing financial difficulties, you may be wondering: Can I file for bankruptcy while in the military?

Yes, military personnel can file for bankruptcy just like civilians. However, service members should consider unique factors such as potential impacts on security clearances and military career standing before proceeding.

Continue reading “Can I File Bankruptcy While in the Military?”

What Happens When a Married Couple Files for Bankruptcy in California?

Posted on by Kostopoulos Bankruptcy Law

If you and your spouse are struggling with debt, you may be wondering: What happens when a married couple files for bankruptcy in California?

When a married couple in California files for bankruptcy, all community property—assets and debts acquired during the marriage—becomes part of the bankruptcy estate. In most cases, eligible debts are discharged, offering financial relief.

Continue reading “What Happens When a Married Couple Files for Bankruptcy in California?”

How Does Bankruptcy Affect My Credit Score in California?

Posted on by Kostopoulos Bankruptcy Law

If there is one aspect of bankruptcy that many debtors focus on when considering their options, it is the hit to their credit report that seems the most daunting. Many people believe that filing Chapter 7 or Chapter 13 bankruptcy will be devastating to their credit, ruining any chances for a financial future. You may be wondering: How Does Bankruptcy Affect My Credit Score?

Filing for bankruptcy in California, or anywhere, will severely impact your credit score, potentially dropping it by hundreds of points, and a bankruptcy can stay on your credit report for 7-10 years depending on the type of bankruptcy. 

 

Continue reading “How Does Bankruptcy Affect My Credit Score in California?”

What Does Non-Exempt Mean in a Michigan Bankruptcy?

Posted on by Kostopoulos Bankruptcy Law

If you’re a debtor looking into bankruptcy options, you’re certainly concerned about losing assets. For people who want to protect property, a primary question will be: What does non-exempt mean in a Michigan bankruptcy?

Non-exempt property in a Michigan bankruptcy includes assets not protected under state or federal exemptions, such as luxury items, second homes, or high-value collectibles. These assets may be sold in Chapter 7 to repay creditors or calculated into a repayment plan in Chapter 13.

As a Michigan bankruptcy lawyer with extensive experience in Chapter 7 and Chapter 13, I’ve assisted countless clients in understanding and applying exemptions to maximize outcomes. In this article, I’ll break down how exemptions work, what property is not exempt, and important bankruptcy strategies.

Continue reading “What Does Non-Exempt Mean in a Michigan Bankruptcy?”

Start Your Financial Reset
Embrace A Debt-free Future

FAQs About Non-Exempt Assets in Michigan Bankruptcy

What is exempt from bankruptcy in Michigan?
In Michigan, exempt property includes assets protected by state or federal bankruptcy laws. Common exemptions include equity in a primary residence under the homestead exemption, one vehicle up to $3,775, necessary clothing, household goods up to $600 per item, tools of the trade up to $2,525, and certain retirement accounts like IRAs and 401(k)s. These exemptions allow filers to retain essential assets necessary for maintaining a basic standard of living.
What is the difference between exempt and non-exempt assets?
Exempt assets are protected under bankruptcy laws and cannot be seized or sold by the trustee to repay creditors. These typically include homes, vehicles, and retirement accounts up to specified limits. Non-exempt assets, on the other hand, fall outside the scope of legal protections and may be sold in Chapter 7 bankruptcy to satisfy debts. Examples of non-exempt assets include luxury items, second properties, or high-value collectibles.
What does exemption mean in bankruptcies?
In bankruptcies, an exemption refers to the legal protection that shields certain assets from being sold to pay creditors. Exemptions allow individuals filing for bankruptcy to retain the essential property needed for daily living and financial recovery. Both federal and Michigan-specific exemptions apply to assets like homes, vehicles, and personal belongings, helping filers start over without losing everything.
What is nonexempt property in Chapter 13?
In Chapter 13 bankruptcy, non-exempt property is not subject to liquidation. Instead, the value of non-exempt assets is considered when creating the repayment plan. Debtors must pay creditors an amount equal to the value of their non-exempt assets over the repayment period. Unlike Chapter 7, Chapter 13 allows individuals to retain all property, including non-exempt assets, as long as the repayment terms are met.

Will I Have to Go to Court for Bankruptcy in California?

Posted on by Kostopoulos Bankruptcy Law

If you’re considering filing for bankruptcy, you might be wondering: Will I have to go to court for bankruptcy in California?

Yes, most bankruptcy filers in California must attend a “341 meeting” (meeting of creditors), but formal hearings before a judge are uncommon unless there are disputes or objections in the case.

Continue reading “Will I Have to Go to Court for Bankruptcy in California?”

What Happens to Your Home After Bankruptcy in California?

Posted on by Kostopoulos Bankruptcy Law

If you’re considering bankruptcy, you may be wondering: What happens to your home after bankruptcy in California?

In California, you can often keep your home after bankruptcy, particularly through Chapter 13, by continuing mortgage payments and following the repayment plan. In Chapter 7, protecting your home depends on using the homestead exemption and staying current on payments.

Continue reading “What Happens to Your Home After Bankruptcy in California?”

What Are Bankruptcy Exemptions in the State of Michigan?

Posted on by Kostopoulos Bankruptcy Law

Bankruptcy is an option for Michigan residents facing overwhelming debt, but many have concerns about losing assets during the process. There are protections for a filer’s property, so what are bankruptcy exemptions in the State of Michigan?

Continue reading “What Are Bankruptcy Exemptions in the State of Michigan?”

Start Your Financial Reset
Embrace A Debt-free Future

FAQs About Bankruptcy Exemptions in Michigan

What property is exempt from creditors in Michigan?
In Michigan, exempt property includes essential assets protected under state or federal bankruptcy laws. Common exemptions cover your primary residence (up to $40,475 in equity), personal vehicles (up to $3,725 in equity), household goods, clothing, and tools of the trade. Retirement accounts, pensions, and certain life insurance policies are also typically exempt.

These protections allow individuals to retain vital assets needed for daily living and future financial recovery. The specific exemptions depend on the chosen exemption system: federal or state.
What is the wildcard exemption in Michigan?
Michigan does not have a "wildcard exemption" under its state-specific bankruptcy exemption laws. A wildcard exemption typically allows filers to protect any property of their choosing, up to a certain value, which is not specifically covered by other exemptions.

However, if you choose to use federal bankruptcy exemptions instead of Michigan’s state exemptions, the federal system does include a wildcard exemption of up to $1,475 in any property, plus up to $13,950 of unused homestead exemption if they don’t use it all for their home.
What money is exempt from bankruptcies?
Certain types of money are exempt from bankruptcy proceedings in Michigan. This includes Social Security benefits, unemployment compensation, disability payments, and pensions. Additionally, child support and alimony payments are typically exempt.

These protections permit individuals to retain access to essential income sources, enabling them to meet daily living expenses during and after bankruptcy. The specifics of these exemptions may vary depending on the exemption system chosen.

Can Military Spouses Get Student Loan Forgiveness in Michigan?

Posted on by Kostopoulos Bankruptcy Law

Many individuals fund educational opportunities through student loans, but people married to active duty service members can face challenges with repayment. The realities of military life present disruptions, prompting husbands and wives to ask: Can military spouses get student loan forgiveness in Michigan?

Continue reading “Can Military Spouses Get Student Loan Forgiveness in Michigan?”

Start Your Financial Reset
Embrace A Debt-free Future

FAQS About Student Loan Forgiveness for Military Spouses

Are military spouses eligible for student loan forgiveness?
Yes, military spouses may be eligible for student loan forgiveness through federal programs such as Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness if they meet the specific qualifications. These programs are available to those employed in qualifying public service or education roles. Additionally, some military-specific benefits and state-level programs, such as the Michigan State Loan Repayment Program, may provide further options for reducing or eliminating student loan debt.
Does student loan forgiveness apply to spouse?
Student loan forgiveness programs generally apply to the borrower. However, if a military spouse qualifies for employment-based forgiveness programs, they can benefit from debt relief. While spousal loans are not forgiven as part of another person’s eligibility, shared financial planning can ease household financial stress. Programs like PSLF, IDR forgiveness, or profession-specific options provide opportunities for military spouses to reduce their own educational debt.
Does SCRA apply to spouse's student loans?
The Servicemembers Civil Relief Act (SCRA) typically applies to loans held by active-duty military members, capping interest rates at 6% during service. It does not directly apply to a spouse’s student loans unless they are co-signed by the service member.

However, military spouses may explore other financial relief options, such as deferment, repayment plans, or state-level programs like those available in Michigan, to manage their educational debt.
Can I get financial aid if my husband is in the military?
Yes, military spouses are eligible for various forms of financial aid. Programs like the Post-9/11 GI Bill or My Career Advancement Account (MyCAA) Scholarship provide funding for education or training.

Additionally, spouses may qualify for federal student loans, grants like the Pell Grant, or scholarships specifically designed for military families. In Michigan, there may also be state-level scholarships or financial assistance programs for military spouses seeking higher education opportunities.
What benefits do military spouses get?
Military spouses are eligible for numerous benefits, including education and training support, healthcare coverage through TRICARE, access to base amenities, and employment assistance. Educational benefits include scholarships like MyCAA, student loan deferment, and forgiveness programs like PSLF for qualifying employment.

These resources aim to support military families by reducing financial burdens and facilitating career development. Spouses can also access counseling and legal aid services to address various aspects of military life.

Do Employers Have to Notify Employees of Wage Garnishment in Michigan?

Posted on by Kostopoulos Bankruptcy Law

Wage garnishment can be a stressful situation for employees facing debt collection. If you’re working in Michigan, you may be wondering: Do employers have to notify employees of wage garnishment?

Yes, Michigan employers are generally required to notify employees of a wage garnishment order. Once an employer receives a writ of garnishment from a court, they must provide the employee with details about the garnishment, including the amount being withheld and the creditor involved. Wage garnishments are typically used to satisfy unpaid debts such as child support, taxes, or court judgments.

Continue reading “Do Employers Have to Notify Employees of Wage Garnishment in Michigan?”

Do you have a matter with which our lawyers can help you?

Get a Free, No-obligation Consultation