The analysis to determine whether you can keep 2 houses in a chapter 13 bankruptcy is complicated.
In most cases, you will be filing a Chapter 13 bankruptcy when you are trying to save a house or if you “flunked” the means test. With a Chapter 13 bankruptcy, your unsecured creditors cannot receive less than the value of you non-exempt assets as if they were liquidated in a Chapter 7 bankruptcy. The key question is whether an unsecured creditor would receive less than they would have received in Chapter 7 liquidation. If the answer is yes, the trustee will either sell the second house or require you to pay an additional amount to the unsecured creditors to account for the liquidation value of the second house.
If you have any questions about Bankruptcy in Michigan, call Attorney Mike Shovan with the Bay Area Bankruptcy Clinic at (877) 233-9389.
Michael J Shovan PLC is a debt relief agency and we help people file for bankruptcy under the laws of the United States Constitution, Article 1, Section 8.
This post is for informational purposes only and is not intended to constitute legal advice. Any relationship with this firm will be established by a written agreement signed by both you and me. If you have read this far, you need to call me at (877) 233-9389 or email me at mike@mikeshovan.com.
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