Ann Arbor Bankruptcy Law Blog

While celebrities are often in the news for bankruptcy filings, it may surprise some in Michigan to hear about a federal judge who filed for protection last year. The judge was appointed by then-President George W. Bush and confirmed in 2007. According to reports, federal district judges make about $174,000 per year -- an amount only slightly higher than the salary of first-year associates at some law firms. Because the salary is uncompetitive, the current chief justice of the U.S. Supreme Court has requested pay increases for federal judges.

The aforementioned federal judge filed for Chapter 7 bankruptcy in late 2011. A bankruptcy trustee has made plans to sell a home belonging to the judge with a price tag of $1.2 million. If sold, the funds generated will be given to creditors to contribute to the costs of the man's debt.

Reports are indicating consumer confidence in the United States remains sluggish. According to a report from the Federal Reserve, consumer borrowing increased at a rate that was less than estimated for the month of February. This was supposedly due to a decrease seen in credit card debt.

Debt -- both revolving and non-revolving -- saw the lowest increase in four months during February. According to estimates, that increase totaled $8.7 billion. Compare this to the revised data from January, which includes an $18.6 billion gain during that month, and you may begin to understand how much smaller the increase in February was. Experts believe that the small increase can be accounted for by realizing that the holidays had just passed and many may have stopped creating debt due to the large amount they accumulated in the previous months.

While some in Michigan know that hospital visits and invoices from the doctor can be expensive, many do not realize that these bills, if unpaid, can quickly affect their credit scores. In some cases there are individuals who do not even realize that they have unpaid bills, only to find out later when collection agencies start calling.

Medical bills should be taken seriously. After receiving medical attention, be sure to prepare for the bill. If you do not have insurance, the costs will likely be much higher. With rising costs, it is more likely that this debt will be overwhelming and will go unpaid. Experts are finding that unpaid medical debt is being reported to credit rating bureaus faster than any other debt.

Those who have lived in Michigan during the recession have seen the worst of the economy. Many have lost homes and jobs and have been swallowed by their debts. When the recession mercifully ended, many were excited for the economic boost that should have come, but some are still waiting for it.

One of the most impressive things that Americans did during the recession -- and after -- was pay down their credit card debt. Many managed to see decreases in their overall debt because of their decisions to leave the card at home or to start properly managing it. Economists were impressed at the self-control that many were showing.