First, there was back to school. Then, with winter approaching, the need for warm coats and boots was evident. Now, there is the holiday shopping to contend with. There seems to be a never-ending cycle of what appears to be necessary spending for Michigan families. When this cycle revolves with the use of credit cards, credit card debt can add up quickly and become a burden.
I filed for Chapter 13 bankruptcy, now Chapter 7 is a better fit
Most Michigan consumers file for personal bankruptcy after their financial standing has taken a significant hit. In some cases, debt levels have simply climbed to untenable heights, and the ability to repay those obligations is unreachable. For others, the loss of a job or a faltering business has dealt a severe blow to their financial outlook. At that point, borrowers must decide if personal bankruptcy offers a viable financial solution, and if so, whether Chapter 13 or Chapter 7 is the better fit for their needs.
Credit card debt can affect anyone, regardless of income status
There are a variety of reasons that people will start using credit cards, from trying to establish a credit history, earning cash back or rewards on spending habits and even to pay for unexpected emergencies. If a plan is made to ensure that the charges can be paid off monthly, the use of a credit card can be beneficial, but unfortunately, quite a few credit card holders may find themselves unable to make the minimum monthly payments. Michigan residents who find themselves with overwhelming credit card debt may have some resources available to them to help overcome their growing debt.
Michigan residents to receive foreclosure assistance
The Michigan State Housing Development Authority (MSHDA) has announced that three agencies are slated to receive funding aimed at helping distressed homeowners. The funding comes from grants obtained through the National Mortgage Settlement, and total nearly $600,000. The state hopes that the agencies receiving these funds will be able to provide much-needed services to homeowners who are facing foreclosure.
Recent study finds Michigan slow to pay out on foreclosure funds
The Congressional Research Service is a nonpartisan group that supports congress with a fact-finding service. It has recently released some startling new information regarding the way many states are handling federal funds. The Hardest Hit Fund was set up by the federal government as one of its initiatives to help with American homeowners who are most at-risk of losing their homes through foreclosure. The CRS study revealed that Michigan is one of the states that have released the least amount of dollars to homeowners from The Hardest Hit Fund.
Discharging student loan debt in bankruptcy is tricky at best
Bankruptcy is a fact of life for many Michigan residents. It has allowed them to regain control of their finances and eliminate large swaths of their debts, including credit card debt. Another large source of debt is medical debt -- an issue which often compounds upon itself if a person is out of work as a result. Medical debt can easily multiply when it goes unpaid -- and can be referred to collection agencies.
Incoming jobs in Michigan may prevent some Chapter 7 filings
There are many reasons why a family may find themselves considering the protection of a Chapter 7 bankruptcy. Medical bills, loss of income and consumer spending issues are all factors that can lead to a decision to formally seek a formal resolution to financial problems, including Chapter 7 relief. Michigan appears headed for a consistent increase in viable jobs, and for some families, this could not come a moment too soon.
