Michigan residents who have filed for bankruptcy may be able to get a car loan after doing so. Those who have filed for Chapter 13 bankruptcy could be allowed to take on an auto loan during the course of their repayment period. Most who are seeking a car loan during or after a bankruptcy will work with a subprime lender. Such a lender will take a person's ability and willingness to pay when deciding whether to extend a loan offer.
The time period during which a person is struggling with asset depletion and avoiding a bankruptcy filing is sometimes referred to as the sweatbox. It's an unpleasant situation for Michigan residents who have to deal with collection calls and making decisions regarding the finances of basic life necessities. A report called "Life in the Sweatbox," which was recently published in the Notre Dame Law Review, focused on the impacts of delaying filing for bankruptcy.
For many people in Michigan struggling with debt, student loans can contribute substantially to the burden that they face. However, this type of debt is set aside from other unrepayable expenses like credit card bills; unlike those debts, student loans are not dischargeable in bankruptcy. As student loan debt and defaults continue to be a major concern across the country, the Department of Education has solicited input about how student loans can be dealt with in bankruptcy in the future. Over 400 comments were submitted as part of the process.
Filing for bankruptcy typically represents a low point in the financial lives of people in Michigan, but the chance to clear out debts offers opportunity for the future. A bankruptcy will linger on a credit report for at least seven years and impact an individual's ability to rent apartments or obtain loans. Despite this, people can rebuild their credit scores with proper money management.
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.
When unemployment or medical problems strike Michigan residents, incomes could fall and bills may go unpaid. However, bankruptcy could represent a viable approach for eliminating debts and reclaiming financial health.
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.
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.
Michigan residents who are overwhelmed by their financial obligations to the point that they are unable to repay all of their debts may want to consider bankruptcy as an option. There are two primary types of consumer bankruptcy that may offer debtors some relief.