Home values in Rochester Hills have gone down, one reason given by former Piston Bad Boy Rick Mahorn for hisfiling.
Well, Warren, Michigan homes have gone down in value, as with homes in every other Michigan community.
And declining home values have pushed many Michigan families into filing bankruptcy.
Though still making a six figure income most years, that was not enough to meet expenses.
Like most of my clients, they struggled for a long time before facing the reality of their situation.
Most of us have a hard time accepting the new economic reality, not just of Michigan, but the world.
Hisbudget showed over $6,100 per month net income, but over $12,500 per month in expenses.
Now, you know this situation built up over time, there was no one calamitous event, like being laid off from a job.
The easiest way to live your life is, to live it in the real world that exists now.
Not in the past, where so many people I talk to are.
That is, they still think their homes will go back up in value to what they were 4 or 5 years ago.
They still think their income is going to go back to what it used to be.
Well, that damn mortgage company is probably not going to wait until those things happen before demanding their monthly payment.
Many people I have spoken to talk about asking mortgage company, or credit card companies, to lower interest rates or reduce payments.
Of course, those are good things.
However, let’s use the Mahorn budget numbers.
Say they had $5,000 per month in credit card payments, and they got that lowered to $2,500.
Great work, right?
But it still leaves them thousands of dollars short, every month, from breaking even.
So, you need to start your analysis of your financial life with, what is your actual monthly income, what do you have to work with.
And, what are your expenses?
Living expenses, not repaying credit cards.
If you have enough for living, and debt repayment, great!
Don’t spend more!
If you have enough for living expenses, but not paying back credit card debt, bankruptcy may work for you.
Watch out for the scam debt settlement companies advertising things like “The Secret the Credit Card Companies Do Not Want You To Know!”
You can contact me for a free phone consultation, and/or.
Piston Mahorn Files Bankruptcy