It’s common knowledge that Michigan’s economy is bad. According to the US Census Bureau, Flint, Michigan’s population dropped 18% from 2000-2010 and the residents living below poverty level in the years 2006-2010 totaled out at a whopping 36.6%. The data from the 2011 Census was not available at the time this blog was published. Lapeer county's unemployment rate was also very high and therefore, more bankruptcies were filed in that area.
According to creditcards.com, Michigan is the sixth state where people are most likely to file for bankruptcy. With 5.72 filings per 1,000 residents, Michigan has climbed the chart three spots since the end of 2011.
Last year, I represented 102 clients in filing bankruptcies in the Detroit, Flint and Bay City courts. I also represented many folks in bankruptcy lawsuits against creditors and debt collectors who had violated my client’s rights. The most frequent bankruptcy discharge violation involves a bankrupt debt being sold to a debt buyer or debt collector who reports the debt to the credit reporting agencies as a balance still owing. Frequently, people do not know that their credit report is showing a discharged debt as owing. They find out about the time they want to get a loan and they are usually in such a hurry they don’t want to be bothered calling their bankruptcy lawyer to complain so they just pay the debt out of the new loan proceeds. It’s not too late to give me a call if this has happened to you.
If you’d like to learn more about filing bankruptcy or protecting your discharge, please feel free to call our office at Rex Anderson PC (810) 653-3300. We have promised our clients that we will review their credit reports for five years following their bankruptcy for free. This way we can help protect our client’s rights.
Collaborative Writing by Rex C. Anderson, Esquire and Contributing Research/Writing by Kellye S. Smith