There are many reasons that Michigan residents are in dire financial straits. In some cases, it might be due to unexpected or steep medical bills. There is also the issue of lifestyle creep that you might experience as a result of not changing their standard of living after losing a high-paying job. Divorce, student debt and natural disaster damage are also common reasons that your expenses have spiraled out of control. We often help clients file for personal bankruptcy and help them move forward.
Consumer Affairs reports that bankruptcy can give you a fresh start. If you are considering filing Chapter 7 or Chapter 13 bankruptcy, create a financial inventory to help evaluate your options.
List at least six months of information about your debts, including student loans, credit cards and other accounts with outstanding balances. Include the creditor’s name, interest rate, balance and monthly payments.
Include all income you received in the last six months. List any side gig income, work wages, and unemployment as well as investment dividends and financial contributions received from family members. Social Security income is exempt.
Using at least six months of historical data, outline your routine living expenses. Your rent or mortgage should be here as well as child support, food, utilities, medical fees and other costs that occur monthly.
Property and assets
Include personal possessions that have particular value in your inventory. Items typically include property, jewelry, art, real estate, automobiles and furniture.
Filing for bankruptcy is a time-consuming, stressful process. However, once complete, you can restructure your finances and rebuild credit, giving yourself a chance to start with a clean slate. Visit our webpage for more information on this topic.