Michigan bankruptcy is a fact of life, especially in a tough economy. In 2011, 56,000 Michigan individuals and business filed for bankruptcy, at a rate of 5.64 per 1,000. Far from being shameful, bankruptcy gives people a fresh financial start, and lets them take risks with a safety net below them.
Modern bankruptcy law has evolved since antiquity. The Romans around 450 BC let creditors either kill debtors or sell them into slavery. Thankfully, American Founders realized debt could spur innovation, and the Constitution gives Congress the power for Michigan bankruptcy law writing.
Today, personal Michigan bankruptcy has two forms. Chapter 7 bankruptcy Michigan offers instant debt relief by liquidating many assets. Chapter 13 bankruptcy Michigan is a court supervised debt consolidation. Michigan bankruptcy can not only erase some debts, but also wage garnishments, civil judgements and liens.
Filing bankruptcy in michigan can shrink a balance sheet, and give someone a second chance financially. There is always a risk with bankruptcy, though, as no one knows how it turns out. Michigan residents should call a Michigan bankruptcy attorney to understand their rights, and gain an advocate in this confusing process.