Retailers are going bankrupt after the dismal sales and now as the U.S. reaches over 7.2% unemployment rate the citizens of Michigan are looking around and saying..So… Michigan has been at 7% for awhile whats the big deal. Michigan’s unemployment rate jumped to over 9%. Yet, no other city in the country is feeling the crunch like Detroit and it’s estimated 22% unemployment rate. People are homeless from forclosures and some of the quasi crooks are walking out of jail and committing crimes so they can return to jail and have a warm bed and 3 meals a day. People all over michigan are filing for bankruptcy or are leaving michigan. People that did’nt qualify to file Chapter 7 and were forced to accept a chapter 13.
Chapter 13 is one way to get yourself out of bankruptcy and still retain your possetions. However, with the unemployment so high and Michigan being primarly a manufacturing state; manufacturing is leaving quicker thancash from the state and federal unemployment budget. So, if your considering Chapter 13 and your job is related to the automotive industry you may want to really try to find a way to file Chapter 7.
Several people( me included) think that the automotive industry will still continue thrive in Michigan. Yet, will workers in the automotive industry still retain the same wage today as they have enjoyed for some time. Here’s the problem, it’s likely the days of paying 50k a year to put on parts will be gone. Now what do you do? You just file Chapter 13 and you are in a 3-5 year pay back plan. Then you find out you went from making $26.00 per hour to finding out the U.A.W agreed to lower hour wages to $15.oo. Now you have to either:
1) Modify your Chapter 13 bankruptcy or
2) try to Convert to a Chapter 7 bankruptcy.
