An experienced Michigan bankruptcy lawyer helps many clients manage their debt or file for bankruptcy each year. Bankruptcy is on the rise in America. According to, bankruptcy filings have steadily increased in the past century, hitting an all-time high in 2005, when more than 2 million bankruptcy cases were started.

While the good news is that so far, an expected bankruptcy surge from the pandemic has not happened, there are still a lot of financial worries and challenges that lie ahead. If you live in Michigan, you may need a Michigan bankruptcy lawyer to help you manage your debt now, or in the years ahead.

Why Do People File for Bankruptcy?

Many people feel shame over their financial troubles. And while some cases of bankruptcy are caused by overspending, in many cases the cause of financial trouble is beyond my client’s control. As a Michigan bankruptcy lawyer, here are some of the top reasons clients come to me:

1) Medical Bills

Whether or not you are covered by insurance, out of control medical bills are a top reason many people end up filing for bankruptcy.

While insurance can cover most day-to-day medical procedures and expenses, patients with rare or serious medical conditions can rack up high bills…quickly. Patients without insurance are often at a loss to cover even smaller medical bills. Many families go through their retirement savings, education savings, and even home equity, only to find they still owe thousands of dollars for their lifesaving medical care. This may leave bankruptcy as the only option.

2) Loss of Job

Job loss is another big cause. As a Michigan bankruptcy lawyer, I have seen more than a few people worried about their finances because of a job loss or uncertain employment. Sometimes the job loss comes as a result of illness, piling one terrible situation on top of another.

While some receive a severance package, or have enough in their emergency fund to cover temporary unemployment, many make only enough to barely cover the daily expenses, meaning a job loss hits particularly hard.

Soon debt collectors start harassing you, and even if you find another job quickly, the bills racked up can keep you in debt for years.

3) Overspending, Poor Credit, Over-use of Credit

Overspending can be a result of a lack of money to cover your basic expenses, or living beyond your means. In today’s social media world, there is a huge pressure to “keep up with the Jones”. We see our friends buying new cars or going on vacations and feel bad if we don’t have enough money to afford the same lifestyle.

In many cases, credit counselling, debt consolidation, and debt settlement can help. But in the end, the only course for some to get out of debt is to file for bankruptcy.

4) Divorce or Separation

This is another big one I see. I’m not only a Michigan bankruptcy lawyer, I’m a divorce attorney as well, and I’ve seen first hand how divorce and separation impacts family and personal finances. The cost of running two households, support, and wage garnishments can push many over the edge into bankruptcy.

Although I don’t like to see it happen to my clients, specializing in both divorce and bankruptcy allows me to help them through to the other side of these two life-changing challenges.

5) Disasters and Unexpected Expenses

With luck and hard work, maybe you have a rainy-day fund. Or enough credit to help you get through an unexpected expense like large home repairs. Or good insurance coverage in case of a natural disaster, like a flood or storm.

But sometimes even the financial best planning can be blown away in an instant, leaving you wondering what to do next.

If you’re facing harassment from bill collectors, threats of legal action from people you owe money to, or may lose your home because of your debt, a bankruptcy lawyer can help.

Worried about bankruptcy? Contact Stephanie Krane-Boehmer, Michigan Bankruptcy Lawyer, for Help!

Stephanie understands how difficult the decision to file for bankruptcy is for her clients. She works hard to make the process as simple and understandable as possible. She is with you through every step of your case, providing the trusted advice and expertise you need to get out of debt and get on with your life.

If you live in Michigan, and are worried about bankruptcy, get in touch with Stephanie today.

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