Chapter 13 Bankruptcy in Michigan

Today I helped a teacher from Detroit file a Chapter 7 bankruptcy. She earned approximately $70,000 annually and was just under the median income for a household of 4. She had over $316,000 in debt and although a large amount was for student loans which are not dischargeable she was able to discharge over a $100,000 in other bills such as credit cards, medical bills, utilities etc. In addition her house was worth substantially less than the mortgage and she wanted to discharge the mortgage debt since she planned on eventually surrendering the house.  I advised that she could still reside in her house for approximately a year under current Michigan foreclosure procedures. During this period she could save money for rent. In addition client can now devote her income to pay down her student loans.