Results 1 to 4 of 4

Thread: michigan chapter 7 Michigan

  1. #1
    Junior Member
    Join Date
    Dec 2008
    Posts
    2

    Default 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 at 03:59 AM.

  2. #2
    Junior Member
    Join Date
    Sep 2008
    Posts
    28

    Default

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

  3. #3
    Junior Member
    Join Date
    Jan 2011
    Location
    Southfield, Michigan
    Posts
    1

    Default 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 at 02:09 PM.

  4. #4
    Super Moderator
    Join Date
    Apr 2007
    Location
    Il.(near STL,Mo.)
    Posts
    14,903

    Default

    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.

Similar Threads

  1. michigan chapter 7 Michigan
    By pkurek in forum Bankruptcy Law
    Replies: 1
    Last Post: 12-26-2008, 07:59 PM
  2. Michigan Minimum Wage Labor Law Poster
    By laborlaw in forum Michigan Labor Laws
    Replies: 6
    Last Post: 08-01-2007, 11:58 PM
  3. 16 year old daddy Alabama
    By kj1116 in forum Alabama Family Law
    Replies: 60
    Last Post: 03-05-2007, 09:07 PM
  4. Bankruptcy Types Michigan
    By qacrawler in forum Michigan Bankruptcy Law
    Replies: 0
    Last Post: 06-24-2006, 04:09 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •