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How State Laws Affect Debt Relief Programs in Michigan

Michigan Debt: The Basics

Michigan, America’s 11th most populous state, is really struggling with unemployment, with a rate of 8.8 percent. The largest city in the state, Detroit, has an unemployment rate of 17.7 percent. For those who do have jobs, the median household income is just over $50,000, though home ownership is on the high side at just over 77 percent.

Though Michigan is struggling with unemployment, its average credit card debt of $4558 sits below the national average. The average credit score is 708 in Michigan, which would be seen as “very good or excellent” by lenders.

Despite the lower average credit card debt and the average credit score being “very good” in Michigan, there is still a need for debt relief programs in Michigan. Debt management services in Michigan, such as Debt Quest, can help guide you through the process of becoming debt free in Michigan. Luckily, there are several options for debt management in Michigan that are available to you, including debt consolidation in Michigan, consumer credit counseling, debt settlement in Michigan and even bankruptcy in Michigan.

 

Debt Collection in Michigan

The state of Michigan follows a set of federal laws collectively known as the Fair Debt Collection Practices Act, or FDCPA. These laws place limits on the original creditor and debt collection agencies on how and where they are allowed to contact debtors.

When it comes to debt collection in Michigan, the maximum interest rate a collection agency can charge is 5 percent. Michigan wage protection is 60% of wages (no less than $15 per week) plus $2 per week per non-spouse dependent. If you are not the head of household, wage protection is 40% of wages (no less than $10 per week). However, federal law stipulates that at least 75% of wages is protected, so in this case, federal law overrides state law.

If you are being contacted by debt collectors, it is recommended that you seek the advise of an agency that provides debt management services in Michigan to fully understand your rights as a debtor and to learn about your options for debt relief in Michigan.

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 Relief in Michigan

If you feel you are drowning in debt, debt consolidation companies in Michigan, such as Debt Quest can help you become debt free in Michigan. There are several different options for debt management in Michigan available to you, including debt consolidation in Michigan (i.e. debt consolidation loans in Michigan), credit counseling, debt settlement in Michigan and even help with bankruptcy in Michigan (both bankruptcy chapter 7 and bankruptcy chapter 13).

Our trained and caring professionals will help educate you on your rights as a consumer and will also analyze your personal debt situation. Once they have looked at your debt, they will then be able to recommend a custom plan for you to find debt relief in Michigan.

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.

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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How much debt do you owe?

$1

$100k+

What is your desired
monthly program deposit?

$1

$5000

Debt Quest Debt Settlement

$500

Your monthly
program deposit

$5,750 Savings

Your Savings

39 months to pay off your
current debt listed above.

Your monthly program deposit:
$500

Your Savings:
$5,750 Savings

39 months to pay off your
current debt listed above.


Debt Consolidation or Credit Counseling

$500

Your monthly
payment

You pay $14,478 more

No Savings

79 months* to pay off your
current debt listed above.

*Assumed average interest of 15%

Your monthly Payment:
$955

No Savings:
You pay $14,478 more .

36 months to pay off your
current debt listed above.

*Assumed average interest of 15%


Paying Minimum Monthly Payments

$500

Your monthly
payment

You'll Pay $29,199 More than you owe currently

No Savings

9 years* to pay off your current debt listed above.

*Assumed average interest of 20%

Your monthly Payment:
$500

No Savings:
You'll Pay $29,199 More than you owe currently.

32 years* to pay off your current debt listed above.

*Assumed average interest of 20%

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