Best Bankruptcy Lawyers in Detroit, MI

Can I Save My Home from Tax Foreclosure with Chapter 13 Bankruptcy? By Walter Metzen Even if you own your home free and clear of mortgage encumbrances, it is still possible to lose your home through tax foreclosure. Michigan law provides that, if you do not pay your property taxes, your home will be forfeited and then foreclosed. Once the home is foreclosed, it is auctioned off in a tax sale by the county in which the property rests. Chapter 13 bankruptcy is the form of bankruptcy most useful to Metro Detroit residents facing tax foreclosure. However, as with everything in life, timing is everything. When can a home be saved from tax foreclosure with Chapter 13? When is too late? This Article will answer these questions as well as explaining some basics about both Chapter 13 bankruptcy and the Michigan tax forfeiture and foreclosure process. What Is Tax Foreclosure? Property tax foreclosure is the process by which local communities in Michigan ensure that they remain solvent. That is, property taxation is the process by which your city and county ensure that they have the funds on hand necessary to pay for the governmental services you need. Property taxes pay for building inspectors, fire fighters, police officers, road repair and construction, and any number of additional governmental benefits.