In a January 25, 2007 Detroit Free Press article by reporter Frank Witsil, the economic crunch facing the metro Detroit area — and similar Midwest areas — is reaching all time highs, particularly in the area of home foreclosures. While home foreclosures do not automatically equate to individuals filing more personal bankruptcies — it is, indeed, possible to save your home from foreclosure by qualifying and filing a Chapter 13 Bankruptcy.

The figures Witsil used for his piece were provided by RealtyTrac, a company that follows mortgage rates across the country.

According to the Freep and RealtyTrac:

• “In Macomb County, the number of foreclosure filings nearly tripled, from 2,755 in 2005 to 8,192 last year, translating to one home for every 39 in the county.

• In Oakland County, Michigan’s wealthiest county, the number jumped from 3,754 in 2005 to 7,282, meaning one of every 68 homes.

• In Wayne County, the number of filings more than doubled, from 18,176 to 40,220, translating to one of every 21 homes.

That, RealtyTrac said, is higher than any county in any of the nation’s largest metropolitan areas.”

The numbers are indeed shockingly high. It is no secret how bad the Michigan economy is — particularly in the metro Detroit area that is based around the auto industry that is reshaping and restructuring to compete in the global marketplace — and that relief isn’t going to just occur overnight.

Certainly the overwhelming daily headlines of job loss, home foreclosures and the growing numbers of personal bankruptcy — both Chapter 7 and Chapter 13 — are a national problem, not just here in the state of Michigan.

And while the auto industry restructuring rocks the economy of Michigan, the state’s governor Jennifer Granholm did mention bankruptcy (though in the context of business more than personal) in her fifth State of the State address from Lansing Feb. 6.

The democratic leader offered up a passionate plea for change: “My proposals will include a mix of solutions — cuts, reforms and revenues,” she said. And while her proposed budget — which will be released Thursday, Feb. 8 — will include more significant details on the direction the state will be directed in over the next few years, it is clear that Michigan’s economy and job loss issues are clearly on everyone’s minds.

“You know the new reality. Our auto industry — the anchor of our [Michigan’s] economy — has been battered as never before. Jobs have been outsourced by the tens of thousands to low wage countries,” Granholm said. “Trade agreements go un-enforced. Industrial giants and small manufacturers have declared bankruptcy — shedding workers and slashing wages.”

Certainly the context of the governor’s comments were broad — referring to businesses who file Chapter 11 bankruptcy but, without a doubt, the growing number of business bankruptcies have an overwhelming effect on those former employees — individual people in the tens of thousands — who are now out of work with no income coming in.

“So this is the heart of our challenge: Will we invest in our people so they and their children can compete and win in the new world economy? Will we invest in our people so they can build great lives here in Michigan?” she said. “Will we? Or will we fail them? Tonight I say we must choose success for our people.”

Although Gov. Granholm offered optimistic hope for a better future, the short term effects of the stagnant — if not dying — Michigan economy doesn’t provide many options for those who are unemployed and have no prospects of turning their futures around now.

Time will tell how the government and economy bounces back from the out-of-control financial issues facing individuals and businesses throughout the state of Michigan, the Midwest and across the nation. Bankruptcy — both Chapter 7 and Chapter 13 — is a very real option, in some cases maybe the only hope, for turning your life around, and providing you a second start.

If you’re an individual and feel that there is no way out of your debt troubles — filing bankruptcy may be your best option. Individuals file personal bankruptcy because they need financial relief and seek a second start: A Chapter 7 bankruptcy or a Chapter 13 Bankruptcy can help you overcome problems if:

• You are facing home foreclosure and fear losing your house

• There has been wage garnishment assigned to your pay checks

• You have been laid off or face other job problems

• There has been a medical crisis to you or one of your family members

• There are pending lawsuits

• You have recently been divorced

• You want to stop creditor harassment

When these problems are regular occurrences, you’ll want to learn more about what filing a Bankruptcy can do to help you. There are Bankruptcy Laws in the states of Michigan, Illinois and all over the nation designed to help you. There is life after bankruptcy: Seeking professional advice from bankruptcy attorneys and bankruptcy lawyers will help.

In 2005, Congress passed and President George W. Bush signed the new bankruptcy reform, making this the most significant overhaul to bankruptcy laws and filings since the original bankruptcy code was enacted in 1978. The new bankruptcy law and provisions adds further stipulations and can be complicated, making an individual seeking relief through a Chapter 7 or Chapter 13 bankruptcy filing more difficult. However, if filing bankruptcy is the only option for you, there are ways to still qualify for either a Chapter 7 or Chapter 13 bankruptcy — and you can soon begin your fresh, second start on life.

In “BAPCA: Part I” information regarding the new credit counseling requirements was offered up: basically stating that there are now Credit Counseling Programs that are mandatory before anyone is eligible to qualify for filing a Chapter 7 or Chapter 13 bankruptcy.

In “BAPCA: Part II” information was provided regarding the new limits to Chapter 7 Bankruptcy eligibility including the “Means Test” and how the Bankruptcy Court determines who can file for a Chapter 7 or whether or not they will have to move over to a Chapter 13 Bankruptcy.

There are many other significant changes to Bankruptcy law from the BAPCA reform. Here is a break down of those new changes.

Some of the significant new provisions to the Bankruptcy Prevention and Consumer Protection Act of 2005:

• Debtors must pursue Credit Counseling before filing for bankruptcy.
• Debtors must also undergo additional counseling, both for budgeting and debt management.
• Debtors with incomes above a certain level may not be able to file for Chapter 7 bankruptcies; they may be required to repay portions of their debts through filing a Chapter 13 Bankruptcy.
• Chapter 7 Bankruptcies have an extended waiting period between six and eight years.
• In a Chapter 13 Bankruptcy Filing, if your income is above the state’s median income, the filer must pay back debts within a five-year plan.
• Attorneys are subject to new Bankruptcy Law requirements, which may make it more difficult (and more expensive) for filers to find lawyers to handle their cases.