Michigan’s Gov. Granholm Mentions Bankruptcy in her 2007 State of the State Address

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 outsource 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.