There is a lot of stress that comes with being in debt. One certainly does not need a debt collector making them feel any worse about their situation. Unfortunately, numerous Michigan residents find themselves dealing with aggressive collection agencies every single day. Some have even had lawsuits filed against them. When this happens, what can one do?
An article was recently released regarding the state of consumer debt in the United States. In May 2019, consumer debt rose nearly 5%. Michigan residents who have found themselves among those whose debt has risen to uncontrollable numbers may need help getting their finances back under control. Bankruptcy law or other debt relief options may help them with that.
Homeownership can give a person a sense of security, that is until the mortgage debt becomes too much to handle. When purchasing a home, it may seem affordable at the time, but life changes can quickly turn that affordable payment into a significant liability. Michigan residents who are struggling to pay their mortgage debt have a few options to improve their situations. Filing for Chapter 13 with the assistance of a bankruptcy law attorney, for example, can help one achieve a truly affordable repayment plan.
Financial struggles abound for many Michiganders. There are several reasons for this. However, according to a recent report, the most significant cause of financial difficulties for most people is medical debt. Numerous individuals who seek bankruptcy law protection do so due to the inability to pay their medical and other bills that result from their failing health.
Credit cards certainly have their place in a person's wallet, if used properly. Unfortunately, for many Michigan residents, they are used to cover expenses when their money runs out. Bills and other expenses have to get paid somehow, right?
Having a good credit profile is necessary if one wishes to gain access to credit cards, loans and rental properties -- among various other things. The problem is, many Michigan residents have found themselves with less than stellar credit ratings due to debts, the inability to repay their debts and specific actions taken to clear their debts -- such as bankruptcy. Because of this, there are those who refuse to file bankruptcy or who will look for companies after the fact that can help them repair their credit, but if they are not careful, they may find themselves worse off.
The thought of filing for bankruptcy is depressing for most Michigan residents. It is hard to admit one needs help getting personal finances in order. Here's the deal: When thought of as a tool for financial improvement, filing for bankruptcy law protections does not have to feel like the end of the world. It can serve a valuable purpose -- as it did for singer Lil Kim.
For a long while, statistics have shown millennials and those from Generation Z to be better at staying out of debt than Gen Xers or baby boomers. According to a recent report, that does not seem to be the case any longer. Younger adults in Michigan and elsewhere are now said to be having a serious issue with credit card debt. For these individuals, bankruptcy law may be able to help their situations.
Last week, this column discussed who can benefit from Chapter 7 bankruptcy. This week, Chapter 13 bankruptcy law will be the focus. Who in Michigan is Chapter 13 designed for? Is it for you?
Chapter 7 bankruptcy can help numerous Michigan residents get out of debt and find financial security. Unfortunately, there are a lot of people out there that claim it is the worst thing anyone can do from a credit standpoint, which stops others from even looking into it. True, this type of debt relief is not for everyone, but if you find yourself in an economic hole that is only getting deeper, it may be time to consider how bankruptcy law protections may benefit your specific situation.