Another Reason to be Wary of Bankruptcy…

We advise our clients to avoid filing bankruptcy if at all possible.  While bankruptcy might seem like a quick way to escape mounting financial obligations, it can have many effects on your existing debts, properties, and assets, as well as your financial future.

And for the dishonest, it can also impact your criminal record, as illustrated in the case of a local man now facing up to 20 years in prison and up to a $250,000.00 fine after making fraudulent claims on his bankruptcy filing.  Filing bankruptcy requires disclosure of all of one’s personal property under penalty of perjury, and while it may be easy to think that no one’s paying much attention to whether those claims are accurate, this man learned the hard way when the IRS caught his failure to report luxury cars, jewelry, and cash in his bankruptcy filing.

This just goes to show that, even for people who can perhaps afford their debts, bankruptcy can seem like a miracle cure when the stresses of meeting one’s financial obligations begin to build up.  But the consequences are not all good, especially in a case like this one.  In this economy, a high volume of bankruptcies can make it easy to think that an inaccurate filing might fly easily under the radar.  This local incident serves as a good lesson that this behavior does not go unseen—bankruptcy filings are carefully monitored, and those trying to cheat the system will likely be caught.

If you’re struggling financially and considering bankruptcy, call our office today at (248) 398-7100or send us a private message for a free consultation.  We are licensed Michigan attorneys with offices in Troy, Brownstown, and Lake Orion, MI, and our skilled attorneys can work with you to explore all of your options for taking care of your debts effectively and efficiently, while avoiding the implications of a bankruptcy filing.

Census Bureau Reveals Interesting Debt Statistics

According to a recent report by the Census Bureau, the amount of Americans in debt dropped by five percentage points between the years 2000 and 2011.  After a more-than-difficult latter half of the decade, this decrease (down to 69% from 75%) seems welcome and perhaps a bit surprising. However, there’s a catch.  While the number of Americans in debt decreased, the median debt load for Americans who have it increased, from around $51,000.00 in 2000 to $70,000.00 in 2011.

Much of this trouble lies on the relative ends of the age spectrum– debt owed by seniors doubled, most likely due to their rising housing debt. On the other hand, the biggest dollar increase in debt occurred among 35 to 44 year-olds, owing a median of $108,000.00. And while the number of Americans holding credit cards is down significantly (down to 38% from 51%), those holding other forms of unsecured debt, such as student loans and uninsured medical bills, increased from 11% to 19%, especially among those under 45.

While less Americans are finding themselves in debt today, these numbers make it clear that the stresses of debt aren’t going away any time soon.  More than half of Americans are still in debt, and the amount of that debt is on the rise.  However, it’s not an endless tunnel.  If you have financial obligations that you simply cannot afford—whether you’ve been sued already or not—call us today at (248) 398-7100 or send us a private message for a free consultation.  We are licensed Michigan attorneys with offices in Troy, Brownstown, and Lake Orion, MI, and our expect collection defense and bankruptcy attorneys can work with you and with your creditors to determine the best solution possible and help you move on with your life.