QUESTION

What will happen with my land contract if I file bankruptcy.

Asked on Jun 19th, 2024 on Bankruptcy - Michigan
More details to this question:
I'm currently under a land contract as the buyer, but it's not fully paid off yet. Unfortunately, I've hit a rough patch and I'm considering filing for bankruptcy. I'm unsure about the implications this might have on my land contract. Will I still be able to file and keep my home ?
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1 ANSWER

Real Estate Attorney serving Bloomfield Hills, MI
Partner at Borman-Lahti PLLC
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IN bankruptcy, ALL Contracts may be affirmed in the bankruptcy. Contracts that  have a negative impact to the estate can be broken and contracts which the State wishes to maintain and be reaffirmed.  I never recommend that people do their own bankruptcy and I highly recommend that you have legal counsel do it for you.  Properly planned and done, the bankruptcy can be financially liberating, however it without a solid claim behind it, I have seen bankruptcy become a treadmill where the bankrupt keeps needing to refile every 2 or 3 years because the first bankruptcy didn't work and once they are on the slippery slope, they can never get themselves right.   I also always recommend wherever possible that one does a chapter 7 bankruptcy and avoid chapter 13 as much as possible.  Again a bankruptcy attorney is the best person to talk to about this.
Answered on Jun 20th, 2024 at 6:55 PM

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