Menu Location
${site.data.firmName}${SEMFirmNameAlt}
schedule a consultation
  • 866-665-8095 toll free
  • -or-
  • 734-418-0365local

bankruptcy Archives

Tax debts and bankruptcy

Some Michigan consumers who feel overwhelmed by their financial obligations might consider filing for bankruptcy. Most types of unsecured debt can be discharge, but people should be aware that most tax liabilities cannot be.

Costs hold back many from filing for bankruptcy

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.

Myths to ignore about bankruptcy

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.

Handling student loans in bankruptcy

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.

Credit card debt on the rise and interest rates expected to rise

Sooner or later many Michigan families need to reach for a credit card when an unexpected expense pops up. Credit card debt has become a fact of life for many American households. The Federal Reserve reports that credit card balances nationwide exceeded $1 trillion in 2017. A senior analyst from CreditCards.com has advised consumers to work on paying off their debts in 2018 because interest rates are rising. This will add to the cost of maintaining debt and could prompt more people to fall behind on payments in the near future, he said.

Court decisions could signal change in mortgage modifications

In Chapter 13 bankruptcy cases, debtors have the ability to modify their mortgages in certain situations. A string of recent decisions may signal a trend that could affect the way bankruptcy courts in Michigan address these modifications. In these cases, a number of Ohio judges have issued rulings that greatly expand a debtor's access to so-called "cram down" modifications to a residential mortgage. This is a major change from the status quo.

The debt burden carried by different generations

The effect that the economy has on Michigan residents and others throughout the U.S. varies depending on the age group of the citizens. For instance, it should come as no surprise that the economic crisis of 2008 hit Millennials, who were just finishing college and getting prepared for their first job, differently than members of Generation X, who were stuck paying mortgages for a house that had devalued. Bearing that in mind, it follows that different generations will have different credit profiles with some struggling more than others.

Chapter 13 bankruptcy and tax sales

Michigan debtors who are considering filing for Chapter 13 bankruptcy may be interested in a ruling made by a Georgia bankruptcy court. The decision marks the second time within a month that a bankruptcy court permitted a Chapter 13 debtor to include in her payment plan the payments for redeemed real property that had been sold in a tax sale.

brand footer

Jackson Office
209 E. Washington
Suite 258
Jackson, MI 49201

Toll Free: 866-665-8095
Phone: 734-418-0365
Fax: 734-663-9973
Map & Directions

Ann Arbor Office
6553 Jackson Road
Ann Arbor, MI 48103

Toll Free: 866-665-8095
Phone: 734-418-0365
Map & Directions

credit cards

back to top