Debt Relief for Eastpointe Residents
Eastpointe, Michigan has been plagued with financial trouble and the situation is continuing to get worse. In 2013, Wall Street 24/7 listed Eastpointe as number one on the list of cities where poverty is soaring. For residents coping with financial problems, many begin to rely on credit cards to cover daily necessities, which can unfortunately lead to debts that cannot be paid. An Eastpointe bankruptcy lawyer can provide representation to individuals and families who have found themselves with mounting credit card bills.
Poverty Rising in Eastpointe, Michigan
Eastpointe has a population of around 32,412 people, and the poverty rate in the area from 2010 to 2012 was 27.1 percent. There was a 14.9 percentage point increase in people living in poverty in Eastpointe and residents in the area had a median household income of just $36,706 annually between 2010 and 2012. This is considerably below the average national income.
The rise in poverty in Eastpointe was driven by many factors. One of the biggest issues is plummeting property values. Between 2009 and 2012, the median value of homes in Eastpointe declined by almost 50 percent. Since many families have the bulk of their equity in their homes, this type of decline can have a major impact on family net worth. For families who need to move, it can also become impossible to sell a house because so many homes are underwater with more owed than the home is worth.
The decline in property values has been driven, in part, by a falling population in the Eastpointe area. Difficult job markets have made it hard for people to keep up their home payments and have sent many people out of the area looking for better opportunities. As the population declined, Eastpointe’s budget shrunk by millions.
State funding also declined by $700,000 since 2009, causing state offices to close and resulting in the loss of full time jobs. City residents have also been required to pay more property taxes to try to balance the budget, which exacerbates a bad financial situation for homeowners.
All of these factors have made it difficult for far too many individuals and families to keep their heads above water. When it is hard to make house bills, putting food and other necessities on credit cards becomes standard practice, but eventually those bills can’t be paid. Individuals who lose their homes to foreclosure amidst falling property values could also end up owing debt to a bank on a house they no longer own.
A Bankruptcy Lawyer in Eastpointe Can Help
If you have credit cards that you can’t pay, if you owe the bank money in a foreclosure, or if you are otherwise in debt trouble, bankruptcy can provide a solution. Bankruptcy can discharge your debts, stop wage garnishment, help eliminate unpaid mortgage debt and otherwise help you get back on firm financial footing.
The impact of a bankruptcy is going to depend upon the kinds of debts you owe, as well as what chapter of bankruptcy you qualify for. Because the median income is relatively low in Eastpointe, many residents can file for Chapter 7 bankruptcy. This allows for debts to be discharged without any repayment plan.
If you are struggling, a bankruptcy lawyer can help you determine if bankruptcy is the right option. Contact the bankruptcy law office of Jeffrey J. Randa for help today.