Michigan Bankruptcy Laws - Operation of Law

Michigan Bankruptcy Laws - Operation of Law:

Michigan Compiled Laws Section 600.6023 provides, in part, "Property exempt from levy and sale under execution; lien excluded from exemption; homestead exemption; rents and profits. . . (j) The homestead of a family, after the death of the owner of the homestead, from the payment of his or her debts in all cases during the minority of his or her children."

Operation of Michigan bankruptcy laws:

In practice, creditors may file objections with Michigan bankruptcy courts regarding the extent of the exemption, designation, and liens which arise through operation of law. Michigan bankruptcy courts are wary of all sales to insiders before and during the pendency of all cases. Also, home improvement loans which draw down equity before filing are scrutinized under both the state fraudulent conveyance statutes and federal fraudulent conversion statutes. A trustee, creditor, party in interest, or the court on it's own motion may file objections.

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