including your house in bankruptcy
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
including your house in bankruptcy
I live and Michigan and my question is , If I include my house in bankruptcy, it goes to foreclosure!? Am I relieved of all financial responsibility even when it is resold ?
Asked on June 22, 2009 under Bankruptcy Law, Michigan
Answers:
GW, Member, Michigan and Hawaii Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
Technically you don't "include" or "exclude" an asset from your bankruptcy. You can claim an exemption, in some cases that probably don't apply here; you can reaffirm the mortgage debt and keep the house; you can file a chapter 13 bankruptcy and propose a plan to get current on back payments and pay the mortgage going forward; or you can allow the lender to foreclose. To answer your question: In the ordinary case where a debtor files a Chapter 7 bankruptcy and allows the lender to foreclose on the property, the debtor is not liable for any deficiency. In short, yes, you are relieved of all financial responsibility.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.