Michigan consumers who are considering filing for bankruptcy may find the process confusing. A consumer recently wondered whether she may spend expected inheritance money during the period before filing for Chapter 13 bankruptcy. She explained her intention to buy a car and have some repairs done to her house.
Reliance on credit cards may cause overwhelming credit card debt
Credit card debt remains one of the biggest causes of financial distress. The National Foundation for Credit Counseling (NFCC) recently conducted an online poll to determine just how dependent consumers are on their credit cards. Michigan consumers may be interested in what the results revealed and how this impacts credit card debt.
Is credit card debt getting you down? Help is available
Michigan consumers may agree that there are few situations that can cause as much stress as facing mounting debt and not knowing how to resolve the problems. While credit card debt is known to be the cause of many such situations, it is the consequent snowball effect that could even lead to a mortgage company threatening foreclosure. Many consumers are overwhelmed and want to take action, but they may not be aware of their legal rights or know where to start.
Comparison between Chapter 7 and Chapter 13 bankruptcy
Many Michigan consumers may consider the protection of personal bankruptcy but are unsure which option to choose. Chapter 7 bankruptcy only applies to consumers whose disposable income level falls below a prescribed level. Chapter 7 bankruptcy usually provides debt relief within months, but it involves the liquidation of assets, and only unsecured debts will be discharged. Chapter 13 involves a court approved extended payment plan, and payments have to continue for three to five years, after which remaining balances may be discharged.
