Michigan Debt: The Basics

Statute of Limitations in Michigan

The statute of limitations sets forth the maximum period of time, after certain events, that legal proceedings may be initiated. For debt, the statute of limitations in Michigan apply to the maximum period of time after the debtor has become delinquent on their payments. Note that a debtor becomes delinquent the day after your payment is due. For example, if you made a payment on May 3, 2019 and your next payment is due June 3, 2019, the statute of limitations starts running on June 4, 2019.

Statutes of limitations can vary depending on the state you are in, and also what type of debt you are dealing with. In Michigan, that statute of limitations are as follows:

• Oral Agreements: 6 years
• Written Contracts and Promissory Notes: 6 years
• Open Accounts (credit cards): 3 years

Debt Consolidation in Michigan

This form of debt management in Michigan is when you consolidate all of your debts into one loan, often referred to as Michigan debt consolidation programs. Debt consolidation loans in Michigan often have a lower interest rate, making the payment of your debts more affordable. Debt consolidation in Michigan is perhaps one of the most common options utilized for debt management in Michigan.

Debt consolidation companies in Michigan will negotiate with your creditors on your behalf to set the terms of your new debt consolidation loan in Michigan. In some cases, once you have paid down enough of your debts through debt consolidation in Michigan, some agencies may then choose to move forward with debt settlement in Michigan with your creditors.

It is important to note that debt consolidation loans in Michigan only lower the interest rate on your debt owed. Michigan debt consolidation programs do not lower the principal amount of debts owed.

Consumer Credit Counseling

Consumer credit counseling is when a debt relief agency provides the debtor with classes on how to better manage personal finances. The hope is that by going through credit counseling, a person will be less likely to get into future debt.

Credit counseling is often paired with another option for debt relief, such as debt consolidation loans in Michigan.

Bankruptcy in Michigan

Filing for bankruptcy in Michigan should be considered your last resort. This is because going through the bankruptcy process can leave long-term negative effects on your credit score. Before starting the bankruptcy process, it is highly recommended that you seek the advice of of an agency that offers debt management services in Michigan first.

Filing for bankruptcy in Michigan includes two common options, bankruptcy chapter 7 and bankruptcy chapter 13. When filing for bankruptcy, be sure to contact a debt relief agency to better understand your rights as a debtor and what properties may be listed as exemptions under the state laws of bankruptcy in Michigan.

Getting mounding debt under control and becoming debt free can be a very stressful process. However working with a company that provides debt relief in Michigan, such as Debt Quest, can give you the peace of mind knowing that a trained and knowledgeable professional is working to help you find the best option for you to become debt free, whether that option is debt consolidation, credit counseling, debt settlement or bankruptcy. It is possible to become debt free in Michigan.

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