Congressional Democrats proposed legislation that would drastically change consumer bankruptcy law on December 9, 2020. It is unlikely this proposal will see any action in 2020 and its future in 2021 is uncertain. If it does move forward, there are likely to be many changes as special interest groups and lobbyists suggest changes that benefit […]

The COVID-19 outbreak has upended many Michigan residents’ lives. Many people in Michigan have been laid off, permanently lost employment, or have had reduced hours. This loss of income has resulted in many residents taking advantage of the forbearance options being offered by their mortgage lenders. A forbearance allows the mortgage payer to discontinue monthly […]

Bankruptcy is typically an option of last resort for debtors in Michigan who can’t afford to continue making payments to creditors. While it may harm a person’s credit score, this isn’t always true. Furthermore, creditors may have to stop contacting individuals who have filed for bankruptcy. Filing for protection from creditors can also put a […]

The Fair Debt Collection Practices Act established strict rules that collection companies in Michigan and around the country must follow. The FDCPA was passed in 1977 to put an end to harassment, threats and intimidation, but some debt collectors routinely flout the 1977 law. However, the FDCPA only applies to companies that are acting on […]

A May report from CreditCards.com revealed that roughly 120 million Americans have credit card debt. That figure represents about 47% of adults in the United States, and the number of people who have credit card debt in Michigan and throughout the country has increased 4% since early March. According to the 2019 Wealth Report issued […]

In 2018, the average person in Michigan spent $11,172 on health care expenses. By 2028, health care spending in the United States is expected to rise to $6.2 trillion, and rising medical costs are considered to be a factor in up to 62% of bankruptcies filed by Americans. In most cases, medical debts are treated […]

In Michigan and across the US, millennials, a term that refers to individuals who were born between 1981 and 1996, are struggling with debt. This age group earns an average income of slightly over $35,500 per year but has only $8,000 in net worth. Based on Federal Reserve data, millennials owe more than $1 trillion […]

Debt collectors might suggest that individuals who owe credit card debt could be sent to jail. However, Michigan residents who are struggling to pay current or past due balances generally don’t have to worry about being taken into custody for not paying what they owe. In 1833, the federal government outlawed debtors prisons. Furthermore, individuals […]

One of the long-held rules in a Michigan bankruptcy was that debtors could not escape their student loan debt, even after filing for bankruptcy. Now, a recent court case may give those who are struggling with unmanageable student loans some hope that bankruptcy can be a way out of their situation. Getting student loans discharged […]

You may feel as if debt settlement is a preferable alternative to bankruptcy. However, Michigan companies that provide debt settlement services may not necessarily be able to convince your creditors to accept less than what they are owed. Furthermore, you may have to pay taxes on any amount that is forgiven, and engaging in debt […]