Practice Areas

Will I Lose my Property?

Q: In a bankruptcy, will I lose my personal property?

A: Not necessarily.

For too many people the stigma attached to declaring bankruptcy leads them to wait too long before they contact a bankruptcy attorney - and they lose their home or their car. Depending upon the particulars of your situation, a bankruptcy may actually save your property.

By consulting with an experienced Michigan bankruptcy lawyer, you will gain a clear picture of the extent of your financial obligations and the options that are available to help you move toward the future without overwhelming debt.

You will keep secured debts you can afford, drop secured debt you can't afford, and free yourself from some or all unsecured debt. You will begin to regain control of your life.

Your Home and bankruptcy

Exempt property may include your home but it will be important to talk to a bankruptcy attorney to get a clear picture of your situation and develop a strategy so you don't find your home in jeopardy again. Have you gotten behind on a few payments or can you no longer afford your home because of a loss of income or an adjustable rate mortgage that has gone through the roof? Your answer to this question will help determine which form of bankruptcy is most appropriate for you - Chapter 13 or Chapter 7.

If you've gotten behind on your house payments but not yet received a foreclosure notice, seek legal counsel NOW from a knowledgeable Michigan bankruptcy attorney. Petitioning for bankruptcy automatically stops the bank from foreclosing on your home, minimizes damage to your credit record, and gives you time to understand the options available to you, which may include:

• Keeping your home and participating in a repayment plan with reduced fees and interest in order to get current on your loan
• Selling your home so that you can pay the bank and keep any excess equity for yourself
• Allowing the bank to foreclose on the home to free yourself of a financial obligation that you can no longer maintain under your current circumstances

Before you accept any offers to buy your home or to refinance on a home equity line of credit or with a lower interest ARM, talk to a bankruptcy attorney who can help you understand the course of action that will work best for your particular situation.

Your Car and bankruptcy

Exempt property may include your car, but this is an area in which the new bankruptcy law has added complexity. Your ability to keep your car, and the amount of repayment (if any) will depend upon a number of factors, including when you purchased the car, the value of the car, and your ability to repay. We can modify the terms of your vehicle loan under a Chapter 13 reorganization if need be to lower your payment or extend the terms of your contract. It will be important to talk with a bankruptcy lawyer who is knowledgeable about the most current issues in bankruptcy and personal property for advice on your particular situation. Call us at 866-261-8282.

Acclaim Legal Services is a debt relief agency serving people in Wayne County, Oakland County, Macomb County, Livingston County, St. Clair County, Genesee County, and Washtenaw County including Detroit, Livonia, Flint, Southfield, Pontiac, Mt. Clemens, Warren, Royal Oak, West Bloomfield, Troy, Ann Arbor, Dearborn, Sterling Heights, Ypsilanti, and Farmington Hills. We help people file for bankruptcy relief under the Bankruptcy Code.