Wayne County Bankruptcy Law Blog

At the height of the economic recession, many homeowners in Michigan found themselves facing the possibility of foreclosure. Given the high rate of foreclosures, mortgage lenders tried to find shortcuts to move forward with proceedings. As a result, a number of institutions adopted the error-prone practice of robo-signing. Now, it appears as though similar -- and equally troubling -- processes have spilled into debt collection.

Robo-signing is considered to be the practice of approving important financial documents, relating to foreclosures or debt collection, without actually examining them. Through this process, a number of people in need of debt relief have faced unwarranted scrutiny from lenders.

As the cost of oil and other natural resources continues to rise, there has been a growing effort to look for alternative forms of energy and transportation. As such, the federal government has been offering assistance to startup companies looking to be part of the solution. One of those businesses, electric-hybrid car manufacturer Fisker Automotive has run into financial trouble and is considering bankruptcy, a development that may interest many in Detroit's business community.

In 2010, the federal Department of Energy approved a $529 million loan to help the company develop its product. After a portion of the loan was distributed to the company, financial troubles began to set in as the company failed to maintain enough capital to continue research and ramp-up production.

Recent college graduates keenly understand how difficult it can be to deal with student loan debt at a time when the job market in Michigan is still recovering. Yet when individuals fall behind on bills and they decide to file for personal bankruptcy, it's unlikely they will be able to discharge their student loans.

In a recent court decision, however, a woman received approval to have $25,000 worth of student loans discharged. By demonstrating that she was "destitute" and had no means to pay back the student loan debt, the court granted an exception to the typical rule. The woman in this case had paid as much as she possibly could over the course of 11 years and could no longer afford to do so in the future.

Although the microbrewery phenomenon has really gained tremendous popularity in the last few years, the Michigan Brewing Co. was over a decade ahead of the trend. The company was successful in the past, but its most recent owner has run into financial trouble personally and with his business, which likely began with the brewery's closure last year.

Not long ago, the man made the decision to file for Chapter 7 bankruptcy, which will hopefully allow him to shed nearly $11 million worth of personal debt. Court documents show that the man's obligations -- including over 350 creditors -- significantly outweigh any assets he currently holds.