Top 3 Signs You Should Consider Filing for Bankruptcy in Michigan

Filing for bankruptcy is a big decision — one most people try to avoid at all costs. We completely understand the hesitation. But too often, we see the downside of waiting too long to get real help with overwhelming debt.

So, how do you know if it's time to talk to a Michigan bankruptcy attorney about filing for Chapter 7 or Chapter 13 bankruptcy.

Do I Need to File for Bankruptcy?

If any of these warning signs feel familiar, it might be time to explore your options with a trusted Michigan bankruptcy lawyer:

#1 Your expenses constantly exceed your income

If you're spending more than you earn every month, it might be manageable if it's only temporary — like reduced work hours or a one-time emergency. Maybe you can cut back expenses or pick up a second job to pay down debt.

But if that's not realistic, don't drown in debt before you take corrective action. The longer you wait, the more stress it causes on your finances — and your life.

At Acclaim Legal Services, we've been helping Michigan families get back on track for over 20 years. We'll help you explore debt elimination, debt consolidation, or negotiated settlements. Sometimes you can resolve debt without bankruptcy — but when you can't, Chapter 7 or Chapter 13 bankruptcy can offer a real path to financial freedom.

#2 Your credit score keeps dropping

If your credit score is stuck in a downward spiral, it's time for a course correction. Poor credit costs you more in high interest rates and can stop you from buying a car, renting a home, or qualifying for basic financing.

It might surprise you, but for most people, filing for bankruptcy will actually help improve their credit score after filing. Why?

Because bankruptcy wipes out debt you can't realistically pay back and resets your payment history — the two biggest factors dragging scores down. These alone make up 65% of your credit score.

Over the years, we've helped over 17,000 Michigan clients get a fresh start — many see their scores bounce back to the mid-600s or higher within a year of filing.

#3 You're facing legal action — like foreclosure, repossession, or garnishment

When creditors get to the point of taking legal action, they're usually unwilling to work out repayment on your terms. We see far too many people come to us after losing a home to foreclosure or having their bank account emptied by a garnishment — situations that could have been stopped.

In some cases — especially foreclosure — once it's final, it can't be undone. Don't risk losing your home or car when these actions can often be stopped immediately by filing the right type of bankruptcy. Connect with one of our licensed Michigan bankruptcy lawyers for a complimentary consultation before it's too late.

How We Can Help

At Acclaim Legal Services, we understand every financial situation is unique. That's why we offer free, confidential bankruptcy consultations with real, practical advice — no pressure, no judgment. Sometimes bankruptcy is the best solution — sometimes it's not. Either way, you'll get answers that help you:

• Understand your Chapter 7 and Chapter 13 options
• Review your debts, interest rates, and long-term goals
• Decide on the best path to lasting financial stability

Take the first step toward peace of mind.

We’ll connect you with a debt relief attorney for a free, no-pressure consultation.

What's the difference between Chapter 7 and Chapter 13 bankruptcy?

Chapter 7 bankruptcy is a debt elimination program that wipes out unsecured debts like credit cards and medical bills - a true fresh start. Learn more about how Chapter 7 bankruptcy in Michigan works.

Chapter 13 bankruptcy is a court-approved debt consolidation plan that helps you repay debts in affordable monthly payments over 3 to 5 years. It offers broader protections and can stop foreclosure or repossession while you catch up on payments. Read more about the Chapter 13 repayment plan in Michigan.

Both Chapter 7 and Chapter 13 bankruptcy offer common benefits:

• Immediate protection from creditor calls and harassment
• A path to rebuild your credit over time
• The option to surrender property you can't afford — without hidden penalties

Frequently Asked Questions About Bankruptcy in Michigan

Q: How do I know if I should file for bankruptcy in Michigan?
If your debt keeps growing, you're relying on credit cards or payday loans to cover basic expenses, your credit keeps slipping, or you're facing legal actions like foreclosure or garnishment — it's time to talk with an experienced Michigan bankruptcy attorney. We've helped thousands of people in the same spot take control again.

Q: Is Chapter 7 or Chapter 13 better for me?
It depends on your income, debts, assets, and long-term financial goals. Chapter 7 wipes out unsecured debt for a fresh start. Chapter 13 lets you consolidate bills into a manageable payment plan while protecting your home, car, and paycheck.

Q: Can bankruptcy stop foreclosure or wage garnishment?
Yes — filing a Chapter 13 bankruptcy in Michigan can immediately stop foreclosure, garnishments, or repossession with an automatic court stay, as long as the case is filed prior to the foreclosure sale date of the vehicle auction sale date. Chapter 7 will stop a wage garnishment immediately with the potential to get some of your previously garnished funds returned. But Chapter 7 will not stop certain creditor actions, such as a foreclosure sale, vehicle repossession or eviction.

Q: Will filing bankruptcy ruin my credit forever?
No. Most people see their credit recover faster with bankruptcy than if they keep falling behind on payments. Many clients qualify for new credit within months. On average, we see our client's credit climb to a 650 and above credit score one year after filing.

Talk to a Trusted Michigan Bankruptcy Attorney Today

If any of these signs feel familiar, don't wait. With over 120 years of combined legal experience and offices across Michigan, Acclaim Legal Services is here to help you find the relief you deserve.

Call us today at 866-261-8282 to schedule your complimentary consultation — or book your Michigan bankruptcy consultation online.

We proudly serve clients throughout Washtenaw, Wayne, Macomb, Oakland, Ingham, and Genesee Counties — including Lansing, Ann Arbor, Detroit, Flint, Southfield, Warren, Dearborn, and surrounding communities.

Let's find your fresh start — together.