No announcement yet.

michigan chapter 7 Michigan

This topic is closed.
  • Filter
  • Time
  • Show
Clear All
new posts

  • michigan chapter 7 Michigan

    My wife and I are filing chapter 7 in michigan, since filing, she has lost her job. She will get a one year ceverance pay. Can that be taken in the chapter 7 bankruptcy. Also can the 2nd and 3rd mortgages be discharged.
    Last edited by pkurek; 12-18-2008, 02:59 AM.

  • #2
    Unfortunately, severance pay is not protected like retirement savings and pension money is. Sorry.
    Who am I: Nicholas Copernicus
    Im here to: Help
    Background: I've been a legal assistant for over five years.


    • #3
      Discharge of 2nd and 3rd Mortgage

      Unfortunately, you cannot discharge your mortgage to your property under a chapter 7 if you intend on keeping the property.

      However, you may be able to "strip the 2nd and 3rd mortgages" and keep the house under a Chapter 13 bankruptcy. In short, if the current FMV of the property does not exceed the value of the 1st loan, then a lien strip can occur. This allows you to treat the additional mortgages as unsecured debt of which most chapter 13 plans allow only a small portion of unsecured to be paid under the plan.

      however, another caveat to filing for a Chapter 13 is to have some form of income. This does not necessarily mean compensation from employment (family contributions could be considered), but you must be able to provide some proof that income does exist to qualify under Chapter 13.
      Last edited by Betty3; 01-29-2011, 01:09 PM.
      Adel Fakhouri
      Latanis Fakhouri & Haddad PLC
      26300 Telegraph Rd.
      Suite 102
      Southfield, MI 48033


      • #4
        lfhlawgroup, please do not reply to old threads - this thread is from 2008. Thanks.
        Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

        Live in peace with animals. Animals bring love to our hearts and warmth to our souls.