Can i keep my house in a chapter 7

[dasherkin]

the only thing holding me back from filing is im worried about my house. i have 2 kids and i love my house. with no money to move.

I live in detroit, 1st mortgage is current, heloc is 2 years past due, my house is underwater. I have no income besides what my kids chip in. i have a car that's paid in full 6 years old and not working at all.

Will i be able to keep my house?

[tobee43]

Michigan Bankruptcy Exemptions

Homestead

600.5451 - Real property, including condominium, up to $31,900(if over 65 or disabled, up to $47,825); but may not exceed 1 lot in a city, town, or village, or 40 acres elsewhere. Spouse or child of deceased owner may claim the exemption. Tenancies by the entirety are exempt without limit as to debts of one spouse [SNB Bank & Trust v Kensey, 378 N.W.2d 594 (Mich. App. 1985)].


you will need to see if this works for you "number" wise. michigan does allow the exemption...so if you fit the criteria you should be fine to keep the house.

[dasherkin]

my 1st is 21,000 second is 18,000.. my home valus is worth tops 20,000 homes in my area selling for 5,000.. so what would that mea for me

[tobee43]

my 1st is 21,000 second is 18,000.. my home valus is worth tops 20,000 homes in my area selling for 5,000.. so what would that mea for me

well....what your telling me doesn't really mean that much... if the house has equity it max'es out at the 31k exemption for your state...so you will have to find out how much equity the house has. try to find LOW comps....and hopefully it will work for you.

houses in your area are selling for 5k??? if so...you would most likely meet the exemption...however, the second if you had the equity could force the sale to recoup...i would think it wise to speak to an atty in your area about the market and what's been happening in your district with real estate.

[newbie2]

my 1st is 21,000 second is 18,000.. my home valus is worth tops 20,000 homes in my area selling for 5,000.. so what would that mea for me

You don't have any equity in the home, so you don't have to worry about the trustee wanting it. Nothing to exempt..you're underwater with no equity. You should be fine, good luck to you and I hope things get better for you.

[dasherkin]

I want to file chapter 7, but i want to reaffirm my mortgage and my heloc to keep my house, I'm current on my 1st, 2 years past due on the heloc

does his sound like a sound plan? will the 2 banks go for this? (sorry for all the questions)

[keepmine]

I want to file chapter 7, but i want to reaffirm my mortgage and my heloc to keep my house, I'm current on my 1st, 2 years past due on the heloc

does his sound like a sound plan? will the 2 banks go for this? (sorry for all the questions)

No that's not a sound plan. You have no job and are relying on others for support.
WHy would you want to reaffirm and obligate yourself {and others} to hang on to an asset that's seriously underwater?
BK is all about a fresh start and there's nothing fresh about what you're thinking about doing.

[dasherkin]

i wasn't talking about if my plan for paying made sense, i was talking about the plan to keep my house. i have my 2 kids living with me, my credit is bad, there i no where else we can live, i know i will be able to keep up the payments, i jsut want to keep my house, $100 from each of my adult working kids to live with here isn't going to kill them.

[newbie2]

I want to file chapter 7, but i want to reaffirm my mortgage and my heloc to keep my house, I'm current on my 1st, 2 years past due on the heloc

does his sound like a sound plan? will the 2 banks go for this? (sorry for all the questions)

Absolutely NOT. Please please PLEASE don't reaffirm either mortgage. You have no income and the house is underwater. You won't lose the house in a bankruptcy filing, you'll only "lose" the obligation to pay for it should you choose at a later date to walk away.

[keepmine]

i wasn't talking about if my plan for paying made sense, i was talking about the plan to keep my house. i have my 2 kids living with me, my credit is bad, there i no where else we can live, i know i will be able to keep up the payments, i jsut want to keep my house, $100 from each of my adult working kids to live with here isn't going to kill them.

Any way you slice it, your plan makes no sense.
First of all, it's very doubtful that your bk lawyer will signoff on the reaffirmation agreement. It really is not in your best interest.
At some point, your adult kids are going to want to be on there on. Don't keep them financially obligated to pay for a house that's underwater by that amount.
Of course you can move elsewhere. I've been on this forum for several years and nobody has ever posted that they've been left homeless because they filed bk. It may take some extra legwork and maybe a higher deposit,etc. That's something your kids can help you with.
At the end of the day, you want to emerge from bk in better shape than you entered. It's hard to see how bk is really going to help you since, you have no job and want to hangon to something that is clearly not worth saving.

[tobee43]

Any way you slice it, your plan makes no sense.
First of all, it's very doubtful that your bk lawyer will signoff on the reaffirmation agreement. It really is not in your best interest.
At some point, your adult kids are going to want to be on there on. Don't keep them financially obligated to pay for a house that's underwater by that amount.
Of course you can move elsewhere. I've been on this forum for several years and nobody has ever posted that they've been left homeless because they filed bk. It may take some extra legwork and maybe a higher deposit,etc. That's something your kids can help you with.
At the end of the day, you want to emerge from bk in better shape than you entered. It's hard to see how bk is really going to help you since, you have no job and want to hangon to something that is clearly not worth saving.

i totally agree with newbie and keep...do NOT reaffirm...but you can work through this. take it from someone who left their home after 33 years...looking back it was the single BEST thing we every did...(well there are a very few exceptions)...but it was a SOUND business decision for our future.