When people in Michigan struggle with overwhelming debt that seems impossible to repay, there may be only one way forward to help protect their financial future: bankruptcy. However, for many, the costs associated with filing for bankruptcy can make this option difficult to access. As many people who file for bankruptcy are dealing with an extremely tight financial situation, the potential costs can seem insurmountable.
Michigan residents and others who file for bankruptcy may see their credit score drop by as many as 200 points. However, a lack of negative information on a credit report prior to the bankruptcy has little impact on how much damage it will do to a specific individual. Typically, the fact that a person has filed and how long ago it occurred play the biggest roles in impacting a person's credit.
When couples in Michigan divorce, they may find that the financial aspects of ending a marriage can outstrip even the emotional obstacles. This can be especially true in the case of retirement funds, which generally represent significant investments. Often, both parties plan to rely on the savings in these funds for their financial futures. Not surprisingly, the division of retirement assets can be a contentious and sensitive matter.
Michigan residents and others who have student debt may be familiar with the fact that those debts usually cannot be discharged in bankruptcy. The only way they can be discharged is if a student would experience an undue hardship if forced to repay them. While undue hardship is meant to be a high standard to reach, there is no specific criteria for determining what that looks like.