Category Bankruptcy

Detroit nears Bankruptcy

Detroit cityIt is a matter a weeks before Detroit becomes possibly the largest chapter 9 municipal bankruptcy filing in the US. What was America’s 5th largest city, today is the 18th with a growing loss of population that have added enormous costs labor, health care and pensions for retirees, add to Detroit’s enormous 13 billion debt.

The auto manufacturers say little about the situation. Another challenge to Detroit is the labor agreements with over 45 bargaining sectors of Detroit’s workforce.

Bankruptcy lawyers in Irvine CA, counsel from Hobbs Legal Solutions, said that in Chapter 9 bankruptcy would allow Detroit to eliminate the collective bargaining agreements with the unions.

Then it would be a matter of battling the rising expenses, since Detroit can’t raise taxes to avoid a further exodus from the city.

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Who Can File for Bankruptcy?

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Rebuildling credit

bankruptcyattorneysirvinecaIf you’ve declared bankruptcy, it’s important to know that your financial life is not over. Depending on whether you filed for Chapter 7 or Chapter 13 reorganization, you can take steps to reestablish a new and improved credit history.

First, regardless of the type of filing, access to new credit is going to be difficult to secure. Court permission may be needed. Lenders will view your charged off debt as a liability and will refuse credit or charge high rates to protect themselves.

But a new credit history can be established over time by paying bills on time and in full. Building up savings and staying out of debt will demonstrate financial responsibility. Eventually your new credit history will convince lenders that you’ve changed the behavior that led to your bankruptcy and they will take a chance with you.

Maintain your new discipline—paying any new debts down immediately and ahead of schedule, if possible—and your new financial life will take off.

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