If you feel as though you’re overwhelmed with debt, then filing for bankruptcy in Michigan might be an option to consider. Even though your credit score could be impacted and some financial challenges could linger for a few years, it can be the start of financial freedom and a way to get back on track.
Behind on payments
After looking at your monthly payments, you shouldn’t be behind more than one month. If you see that you’re already behind and don’t see a way to catch up on what you owe, then it might be time to talk to an attorney about filing for bankruptcy.
Although credit cards are beneficial to have on hand for emergencies, they shouldn’t be used to pay your monthly bills if at all possible. You should try to keep your credit card usage under 30% and only use the cards for things like gas or groceries. If you’re unable to pay your card off within a month or two or if you find that the ones that you have are maxed out, then bankruptcy can help clear the debts.
In the event that there’s been a significant reduction in your monthly income, you might have to cut back on some expenses. After looking at things that you cut back and how much money you still have for your budget, you might find that it’s still hard to make ends meet. This would be when you should consult with someone about filing for bankruptcy.
Although bankruptcy might not be something that you want to consider as it can impact your overall credit, it’s often one of the only ways that you can save your finances.