Legal Help To Protect Your Home During Bankruptcy
Michigan is not only known for its stunning natural beauty but rather for its community and culture built on hard work and dedication. Sometimes, financial difficulties arise and threaten to take away this cherished symbol of stability and security. Explore the ins and outs of the Michigan homestead exemption and how it can help you protect your home.
Navigating the legal process of filing for a Michigan homestead exemption can be challenging and overwhelming, especially during financially trying times. That’s where Hammerschmidt Stickradt & Associates comes in. Our legal team can provide the guidance you need to protect your home and assets and determine if a Michigan homestead exemption is the right choice for you.
At Hammerschmidt Stickradt & Associates, we understand the stress and uncertainty you are going through. Our lawyers can guide you through the application process to court representation so you can safeguard your future. Let us provide the support and guidance you need to make it through this difficult time. Call us today to schedule a free consultation regarding the homestead exemption in bankruptcy in Michigan
Why Do I Need A Bankruptcy Lawyer in Michigan?
Many debtors are discouraged from filing for bankruptcy since they believe everything will eventually be lost in the process. Numerous misconceptions have left people unsure of fact and fiction. Unfamiliarity with bankruptcy can lead to avoidance altogether, but bankruptcy laws are considerably more lenient towards debtors because they include bankruptcy exemptions.
It is important to understand that you are protected by state and federal bankruptcy laws, meaning certain assets are exempt from bankruptcy consideration and/or inclusion. A bankruptcy attorney from Hammerscmidt Stickradt & Associates can help you understand the bankruptcy process and everything in between including all the properties you can protect by taking advantage of the homestead exemption in bankruptcy in Michigan.
As your lawyer, here are some of the few ways we can assist you:
- Help you understand and navigate the bankruptcy law
- Analyze your financial situation and strategize the best solution for your case
- Assist you in listing the properties you can protect under the state and federal bankruptcy exemptions and identify which is the best option for your situation
- Protect your assets by maximizing and taking advantage of all exemptions applicable
- File your bankruptcy paperwork and ensure that it’s error-free
- Provide you with legal advice and guidance throughout the entire bankruptcy process, helping you make informed decisions that are in your best interest
The bankruptcy process can be intimidating and overwhelming but with the assistance of our Michigan bankruptcy lawyer, we can help ensure that you have the best possible outcome in your case. Act now before it’s too late. Contact our bankruptcy law firm immediately and let us help you protect your home.
What Is Michigan Homestead Exemption?
Michigan’s Homestead Exemption is a legal provision that allows homeowners in the state to protect the equity in their primary residence from being seized by creditors or used to pay off certain debts. The exemption is designed to help individuals and families facing financial hardship to keep their homes, providing a crucial safety net during tough times.
The amount of the exemption varies based on the homeowner’s circumstances, such as age or disability, and the current value of their home. In Michigan, the homestead exemption can provide a certain amount of protection for individuals and for couples filing jointly.
It’s important to note that the exemption does not apply to all types of debts, such as federal tax liens, and certain restrictions may apply. Seeking the guidance of a Michigan bankruptcy attorney can help ensure that you understand your rights and options under the Michigan homestead exemption. Talk to us today!
What Properties Are Protected By The Michigan Homestead Exemption?
In Michigan, the homestead exemption allows you to protect a certain amount of equity in your primary residence from your creditors. Here are the properties that are protected by the Michigan homestead exemption:
- Primary residence: The Michigan homestead exemption applies to your primary residence, which is the home where you live for the majority of the year. This can include a single-family home, a condominium, a cooperative unit, a mobile home, a motor home, a boat or other watercraft, or a manufactured home
- Land: The homestead exemption also applies to the land on which your primary residence sits. Outside of a city, village, or recorded plat, the homestead can encompass up to 40 acres. If the property is located within a city, village, or recorded plat, only one lot or parcel is exempt.
- Improvements: Any improvements or additions that you have made to your primary residence, such as a garage, a deck, or a pool, are also protected by the homestead exemption.
Remember that the Michigan homestead exemption only protects a certain amount of equity in your primary residence. If you owe more on your mortgage than the value of your home, the homestead exemption may not provide any additional protection. Additionally, if you have other properties or assets, such as a second home or rental property, those properties may not be protected by the homestead exemption.
If you and your spouse hold property as tenants in the entirety and if only one spouse files for bankruptcy, the trustee may be prohibited from using the property’s equity to pay off debts. Homestead exemptions are a difficult area of bankruptcy law. It’s important to consult with a Michigan bankruptcy attorney to understand the full scope of your exemptions and protections to ensure that you do not lose valuable property.
How To Time Your Michigan Bankruptcy?
If you have been a resident of Michigan for longer than one hundred eighty days, you are eligible to file for bankruptcy in the state. However, in order to qualify for Michigan homestead exemptions, you must have lived in Michigan for a significantly longer period of time – at least 730 days before filing, to be exact. Otherwise, you should use the exemptions from your previous state.
But let’s say that during the period of time leading up to your bankruptcy filing, you lived in several different states. In this scenario, you would apply the exemptions of the state in which you resided for the majority of the 180 days prior to the two-year period that immediately preceded the time when you filed your taxes.
If you have questions about the timing of your bankruptcy filing and how will it affect the homestead exemptions you may apply, reach out to our bankruptcy lawyer in Michigan immediately.
How To Claim The Michigan Bankruptcy Homestead Exemption?
In Michigan, you can claim a homestead exemption when filing for bankruptcy. The homestead exemption allows you to protect a certain amount of equity in your home from your creditors. Here’s how you can claim the Michigan bankruptcy homestead exemption:
Determine If You Qualify
In Michigan, the homestead exemption is available to anyone who owns and occupies a residential property as their primary residence. The property must be located on 40 acres or less of land, and you must have lived in the property for at least 730 days prior to filing for bankruptcy.
Determine The Amount Of Your Exemption
The amount of your homestead exemption in Michigan depends on your age and the amount of equity you have in your home. If you are under the age of 65, you can exempt lower equity in your home compared to if you are over the age of 65.
Complete Bankruptcy Forms
When you file for either Chapter 7 or Chapter 13 bankruptcy, you will need to complete several forms, including Schedule C, which is the form used to claim exemptions. On Schedule C, you will list your homestead exemption and provide supporting documentation to prove your eligibility.
Attend The Meeting Of Creditors
After you file for bankruptcy, you will be required to attend a meeting of creditors. At this meeting, the trustee appointed to oversee your case will ask you questions about your assets and liabilities, including your homestead exemption.
Wait For The Discharge
If everything goes smoothly, your bankruptcy case will be discharged, and you will be granted a fresh financial start. Once your case is discharged, your homestead exemption will protect the equity you have in your home from your creditors.
It’s important to note that bankruptcy laws can be complex, and the process of claiming exemptions can be tricky. It may be helpful to work with our Michigan bankruptcy attorney to help you navigate the process and ensure that you are taking full advantage of all available exemptions.
Call Our Qualified Michigan Homestead Exemption Attorney Now!
The Michigan homestead exemption is a valuable tool for homeowners in Michigan to protect their primary residence from creditors and certain types of legal judgments. By filing for this exemption, homeowners can secure a portion of the equity in their homes and potentially avoid having to sell their homes in order to pay off debts.
At Hammerschmidt Stickradt & Associates, we understand the importance of protecting your home and your assets. Our team of experienced attorneys can help you navigate the process of filing for the Michigan homestead exemption and ensure that you are taking advantage of all available protections under Michigan law. Whether you are facing financial challenges or simply want to safeguard your home and your future, we are here to help.
Contact us today to schedule a consultation and learn more about how we can assist you with your legal needs.