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How likely is sale of home-Northern Michigan

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    How likely is sale of home-Northern Michigan

    I am just getting started on research about filing 7 or 13. I am below median with $200 left after expenses. My home, on 20 acres is worth about $160k, Mortgage is $102k and current. I have $140k in unsecured debt. Other assets include paid for vehicles valued at about $20k and art worth $7k.

    Is it likely that trustee will take all assets including home? Is chapter 13 even possible?

    I contacted one attorney, but he didn't seem very knowledgeable, so I thought I 'd do my own research prior to contacting another. Any help would be appreciated...

    #2
    What does your state provide in the way of exemptions?

    Comment


      #3
      I am stuck using the Federal as I am a less than 2 year resident and my previous home state does not allow use of their exemptions by non residents.

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        #4
        You will need to supply more information... Are you married? Are both of you filing? How do you know the home's value, have you recently appriased it? What are the values of the individual vehicles? You income? Expenses? Etc. Just by looking at it you will definately be an asset case and most likely you will loose atleast one vehicle.

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          #5
          Married filing jointly, income 3250, expense 3050, 1 diesel truck valued at 15K, 1 van valued at $2500, another van valued at $2500. Property appraised one year ago. Thanks for your help.

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            #6
            If you're stuck with federal exemptions, it looks like you will be in a Chapter 13
            With only a $20,200 homestead exemption, you have too much equity for a 7.

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              #7
              Yes, I do believe you would be an asset case if you tried to file Chapter 7. Since you will use up the entire homestead exemption under the federal exemptions, you obviously don't have any unused homestead exemption amount left to cover other property. The federal exemptions only allows two vehicles to the tune of only $3,225 each. However, you do have a small wildcard exemption that can be doubled if you file jointly. I believe it's just over $2,000 if you file jointly. That's not enough to cover all of your property, unfortunately.

              You might be in a situation where if you go into a Chapter 13 you just continue to pay your mortgage and have only $200 or less going towards unsecured creditors. Is that feasible for you?

              I would definitely "cushion" your budget to make sure account for home repairs, future car repair bills, haircuts, magazine subscriptions, vet bills, property tax increases, etc.

              Have long have you lived in Michigan and do you know what their state exemptions are? If you resided in Michigan long enough before you file, would you fare any better than the federal exemptions? Schedule some free consultations with attorneys to get a professional opinion. Good luck to you.
              Filed Consumer Chapter 7 12/18/08
              341 meeting 1/15/09

              No-asset distribution report filed 1/20/2009
              Discharged 3/23/09

              Comment


                #8
                Originally posted by woodburner View Post
                Married filing jointly, income 3250, expense 3050, 1 diesel truck valued at 15K, 1 van valued at $2500, another van valued at $2500. Property appraised one year ago. Thanks for your help.

                A house valuation from one year ago is too old and not valid in a market like this. In this market, sales more than 90 days old are too old to use. You can get a market analysis from a realtor for free to obtain the current Fair Market Value. If you use Zillow, it is not representative of the current market - it usually comes in high. Besides, Zillow or any of the automated valuation sites do not handle diverse properties well; those sites are better used for cookie cutter subdivisions and even then, the values tend to be high.

                The end result, you may not have nearly as much equity as you think.
                Filed CH 7 9/30/2008
                Discharged Jan 5, 2009! Closed Jan 18, 2009

                I am not an attorney. None of my advice is legal advice in any way..

                Comment


                  #9
                  The real estate market in Michigan has been bad for some time. A local realator told me prices didn't really run up with other parts of the country and haven't dropped recently.

                  I will get a formal market analysis, that's a good idea. The question is, if I really do have $58K in equity and an exemption of $40,400, is trustee likely to sell the house?

                  I really don't care one way or the other, but I can't rent much cheaper than what I'm paying now. I'd just like to know what to expect.

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                    #10
                    Well, I find it difficult to believe that the market has not changed in the past year. Call a Realtor that is full time in the business, have them do a CMA using comps from the last 90 days. True comps - sold and closed properties only.

                    For the Trustee to want your place, there would have to be funds generated from the sale. So, first get the new value then subtract the cost to sell and see what you net. From what you post as to value and normal cost of selling, it does not seem logical that the Trustee would sell it as there would not be anything left! JMO.
                    Filed CH 7 9/30/2008
                    Discharged Jan 5, 2009! Closed Jan 18, 2009

                    I am not an attorney. None of my advice is legal advice in any way..

                    Comment

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