Ann Arbor Weather:
Saturday September 23, 2017
Follow us: facebook twitter RSS feed
Print Comment E-mail

Bankruptcy Boom

 

continued

Ellmann sees Michigan's raw economic wounds in Ann Arbor's federal bankruptcy court. "I'm definitely seeing a lot of low-income people," says Ellmann, who has adjudicated local bankruptcies since 1989. "And since the economy crashed in October, I've seen high-income folks, too, and a fair number of middle-class people."

Bankruptcy filings nosedived for a year after Congress tightened the rules in 2005, but since 2006 they've risen by almost two-thirds. Ellmann and fellow trustee Tim Miller handled 41,247 bankruptcies last year in Washtenaw, Jackson, Lenawee, and Monroe counties, and the numbers continue to climb.

"Some people don't file at all because they have nothing to protect," Ellmann adds. "If you don't own much, or if you don't have money to file, you might just walk away, particularly with house foreclosures." The suffering is worst, he adds, in "communities outside Ann Arbor where there's a steep income falloff. Some of those areas have been absolutely devastated.

"A fair amount of people who used to be in the auto industry and took a buyout [to leave their jobs] now can't find gainful employment," continues Ellmann. "Plus the housing bubble caused a lot of problems. People kept getting multiple mortgages on their homes, using them as a place to catch up on their bills. And with a reduction of hours or a medical problem, it doesn't take much to fall way, way behind very quickly."

Bookmark and Share
previous  ·  1 l 2 l 3  ·  next page
all on one page
read more stories here -> Marketplace  l  Culture  l  Community  l  News

You might also like:

Drought Opens on E. Washington
Juices and cleanses from a quartet of sisters
Sabine Bickford
Sprint for Flint
Mark Braun is racing to Mackinac Island by land and lake.
Sandor Slomovits
Nickels Arcade:
The first 100 years
Grace Shackman
U-M Libraries
Today's Events
Mental Health Court
Seeing her son handcuffed and in a jailhouse jumpsuit wasn't a new experience for Billie Jo Heath.
Anita LeBlanc
Trace Bundy
The Acoustic Ninja
James M. Manheim
Fred's
Acai bowls and avocado toast
M.B. Lewis
Tumbao Bravo
Sweet as a well-made mojito
Sandor Slomovits
Ollie Food + Spirits
Ypsi innovators
Lee Lawrence
Regent Hotel
Senior Living Communties 734-677-0071
spark ann arbor