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Cincinnati Bankruptcy Law Blog

Seeking relief from debts as a small business owner in Ohio

Many small businesses in Ohio and across the country have experienced periods of financial struggle at some point in operation. While in some cases, a company may be able to overcome monetary challenges with time, in others, the problem may persist, potentially prompting a need for guidance on the options for relief. When facing similar circumstances, a small business owner could benefit from exploring the options of filing for bankruptcy.

According to reports, there have been a record number of businesses who filed for bankruptcy over the previous year. This includes a variety of retailers, some of which are large chains that have chosen to shut down a substantial number of stores in an effort to remain operational. With an ever-changing business model, many companies, large and small alike, may struggle to keep up with the competition at times.

Bankruptcy: The signs that debt has become a serious issue

Many individuals in Ohio and across the country may find it stressful and intimidating to think about certain life issues, such as debt. Unfortunately, this does little to make these concerns disappear, and may only make matters worse. For those who face similar circumstances, there may be numerous signs that debt has become a serious issue. In those circumstances, exploring the options for relief, such as bankruptcy, could be in order.

While debt can come in numerous forms, one of the most common areas where one may struggle with financial hardships pertains to credit cards. Those who struggle to keep up with similar obligations may see account balances soar, especially when high interest rates are a factor. This can create a snowball effect where even the minimum payment on credit accounts becomes unmanageable.

Bankruptcy: The stress of debt could threaten one's health

It may come as no surprise that overwhelming amounts of debt can place an individual under significant monetary burdens. However, along with the financial strain of a similar situation, studies also suggest that such issues can have a substantial impact on a person's health, physically and emotionally. Many individuals in Ohio and elsewhere consider their well-being to be of the utmost importance, which might lead some to consider seeking relief from debt through outlets such as bankruptcy.

Stress of any kind can have a negative impact on a person's health. Studies suggest that being overwhelmed by financial obligations can lead to mental health issues such as depression, which can create challenges in various other areas of life as well. In addition, they also claim that similar circumstances can affect one's immune system, which could reduce his or her ability to fight an illness.

Seeking protection from creditor harassment through bankruptcy

Many individuals in Ohio and elsewhere have experienced the burdens of overwhelming debt. Financial hardships can be intimidating enough on their own, and the constant collection calls and letters may to little to ease the stress of the situation. While some attempts to collect on debts may be within reason, others may cross the line into illegal tactics, potentially leaving an individual the victim of creditor harassment.

Many of those with outstanding debts are no stranger to early morning phone calls. However, this may not stop them from feeling intimidated by them, perhaps especially if the interaction is threatening in nature. According to reports, some creditors have gone as far as threatening debtors with arrests or lawsuits in an attempt to pressure them into making payments, which is illegal.

4 common bankruptcy exemptions

If you're considering Chapter 7 bankruptcy, you're probably seeing flashes of old movie scenes where a formerly successful person goes bankrupt. Hollywood usually depicts these scenes with images of movers coming into the house and taking away all of the person's possessions. Usually, they're just left with the clothes on their back.

This is not how Chapter 7 bankruptcy actually is. Yes, you might need to let go of some of your possessions, but for the average Chapter 7 filer, they get to keep the majority of their possessions. At the very least, they will keep the non-luxury properties they actually need. It's all because of bankruptcy exemptions and the fact that much of your property will receive protection from liquidation in Chapter 7 proceedings.

Vitamin World files for Chapter 11 bankruptcy

With the ever-increasing level of competition in the retail world, business owners in Ohio and elsewhere may struggle to keep up with larger chains at times. Should these hardships persist, a business could experience substantial financial difficulties that threaten its longevity, and a need for relief may arise. After falling behind financially, a popular vitamin retailer has recently filed for protection through Chapter 11 bankruptcy.

Vitamin World, much like many companies that operate mostly from within shopping malls, began to experience overwhelming monetary challenges. According to reports, the vitamin retailer chose to file for bankruptcy following recent difficulties stemming from a disruption in the shipment and availability of supplies. These issues caused a significant drop in sales, leaving the retailer in search of relief.

Bankruptcy: Being thorough when exploring the options for relief

The burdens of debt can place a significant amount of financial weight on an individual. Those in Ohio and elsewhere that experience similar hardships may find it beneficial to know that relief is available. However, when exploring the options for debt relief, one may want to proceed with caution, as certain outlets could be less helpful than they seem, and bankruptcy might be a much better alternative.

When searching through the available options, one might overlook bankruptcy, perhaps believing that repaying debts, even if only partially, is a better choice. This could lead some to consider a settlement, which might seem enticing at first, but may actually prove more harmful than helpful. Even if a person comes to an agreement concerning debt settlement, the process can still take years, and since interest may continue to accrue during this period, the total amount required to complete a settlement could be nearly as much as the original balance.

Determining if bankruptcy is the correct path for debt relief

Dealing with overwhelming amounts of debt can be stressful and daunting, potentially prompting many individuals in Ohio and elsewhere to search for relief. While some may be able to overcome financial challenges with time, those who are constantly unable to keep up with monthly expenses might be in need of a long-term solution, such as bankruptcy. Since filing for bankruptcy is a major decision, those who wish to explore its benefits may find it advisable to obtain guidance in determining if it is the correct path in which to seek financial freedom.

When attempting to determine if bankruptcy is the best course of action to take, there may be numerous factors to consider before entering the process. Before one can file for bankruptcy, he or she will have to go through credit counseling. While this is generally a requirement, it is a process that should be taken seriously, as the information provided could help an individual make informed decisions regarding his or her financial future.

Bankruptcy: Unexpected expenses can create financial hardships

In periods of financial struggle, some individuals may turn to lines of credit for help in covering expenses. While this type of assistance could provide immediate relief, it may only add to one's overall monetary problems. With recent studies suggesting credit card debts have reached an all-time high, individuals in Ohio and elsewhere might be experiencing similar issues. Some are undoubtedly exploring available options for relief, such as bankruptcy.

Although many individuals may feel as though their credit card debt is under control, one's ability to make the required monthly payments could change in an instant. Loss of employment or a medical emergency are just two examples of situations that are often unexpected, and can disrupt a person's finances in various ways. Should an emergency cause an individual to get behind on credit card payments, the resulting monetary hardships could prove challenging to overcome.

How Chapter 13 bankruptcy could save your home from foreclosure

The world can be terribly unforgiving. You work ten years to save up your cash so you can put a downpayment on your first home. Then you keep working so you can slowly pay off the mortgage. Twenty years later, you've got $100,000 of equity in your home and you're feeling great. Then, you lose your job and you can't pay your mortgage.

If you miss a few mortgage payments, your bank may decide to foreclose your property. Basically, no matter how much equity you have in the property, your bank can take it from you and you'll lose everything.

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