Westland, MI asked in Bankruptcy and Collections for Michigan

Q: I have roughly 100,000 equity in my house am in disability and have about 20,000 of debt I am having an issue paying

Comb of 3 cc and left over debt from repo car. What are my options I can’t get a home equity loan as I don’t make enough.

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2 Lawyer Answers
Joel Gary Selik
Joel Gary Selik
  • Collections Lawyer
  • Las Vegas, NV

A: Negotiate a payment arrangement, consider bankruptcy (you may not need to lose your equity-consult with experienced attorneys).

Timothy Denison and Robert Keyes agree with this answer

Ralph Reisinger
Ralph Reisinger
  • Bankruptcy Lawyer
  • Grand Rapids, MI
  • Licensed in Michigan

A: It depends on your home value. If the home is worth 200,000 the combination of the State Exemption $69,200 and the liquidation cost of $20,000 would reduce the required payoff to around $10,000. If the house is worth more, the amount you would have to pay in would be less because the liquidation amount would be higher. So a 300,000 house, liquidation cost of 30,000 would allow you to pay a minimal amount. You might also consider hiring an attorney that specialized in debt settlement to lower your debt payments.

Timothy Denison agrees with this answer

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