is my house safe?

[Brenda White]

What is the name of your state? Michigan
I own my home and have my own business. Due to no being paid by clients I am in a position where my credit card debtors are calling and now are trying to serve me. If i go to court is it possible to lose my home? I cannot file bankruptcy due to the fact that my home is an asset and I cannot get a loan due to my credit.

[Ladynred]

What makes you think you can't file for bankruptcy because you have a home ?? There ARE exemptions that might completely protect your home.

How much EQUITY do you have in your home ??

The new law that was just signed by Bushy-boy included provisions for homestead exemptions that went into effect immediately, the rest won't go into effect until October. How long have you owned your home and how long have you live in MI ???

MI State exemptions in BK (or for judgments) is:
Bankruptcy Exemptions or Assets that can be kept in a Bankruptcy

Homestead:
A homestead in the amount of not less than $3,500 and personal property of every resident of this state in the amount of not less than $750, as defined by law, shall be exempt from forced sale on execution or other process of any court. Such exemptions shall not extend to any lien thereon excluded from exemption by law.

MI allows you to use FEDERAL exemptions in bankruptcy, that homestead exemption is as follows:
Title 11 U.S.C. Section 522
Married couples double the amount of the following federal exemptions:

* Homestead • Real property, including co-op or mobile home, to $18,450; unused portion of homestead to $9,250 may be applied to any property;

The new BK law that affects homestead exemptions now:
This is law effective April 20, 2005: The exemption is limited to $125,000 if the property was acquired
within the previous 1215 day (3.3 years). The cap is not applicable to any interest transferred from a debtor's previous
principal residence (which was acquired prior to the beginning of such 1215-day period)

So, you probably DO have a choice. If Ch 7 won't work, then Ch 13 will.

[Brenda White]

My home is paid for, and is worth approx $50,000-60,000. I have live in Michigan all my life. The home, I've owned since 1982.

[Ladynred]

Ok, I see where you're coming from then, not enough exemption to protect your home. However, you COULD still file BK, just a Ch 13 and protect your house and stop the creditors.