Q: If a person declares bankruptcy will they lose their house?

A: Consult a competent bankruptcy attorney immediated

A: Much of your answer is fact-dependent.

E.g., is your mortgage debt current? Who controls the family finances/checkbook? How much credit card debt has been accrued? Is there equity value in the residence above the mortgage balance?

A Chapter 7 bankruptcy is a so-called "liquidation", the fastest and cheapest form of bankruptcy. You are entitled to claim about $25 thousand of any equity value as exempt under the federal exemptions (your state exemptions may be available/better).

A Chapter 13 bankruptcy is ofter called "save the house". If there is a mortgage arrearage, a Ch. 13 plan can put the arrearage in the Plan and pay it, interest-free, over the life of the plan, and discharge some amount of the general unsecured claims.

Are there "priority claims", e.g. unpaid taxes? If so, if income taxes, those amounts may be dischargeable if older than 2 years and four months if the return was timely filed.

Speak with an experienced Michigan bankruptcy attorney for your best results.

A: Need much more information. Most important - is the mortgage current? If so, then you may be able to file Ch 7 (the simple short bankruptcy). If not current you would need to either get current before you file a case or file Ch 13 bankruptcy and get caught up over either 3 or 5 years.

A: It is unlikely that a person will lose their house if they declare bankruptcy in Michigan, as long as their primary residence is exempt from liquidation. However, it is important to note that every bankruptcy case is different.

Consult with an experienced bankruptcy attorney to discuss your specific situation.