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Cincinnati Bankruptcy Law Blog

Navigating business bankruptcy in economical turmoil

The current global crisis has put all business owners on alert as they navigate the new normal for shopping, communicating and interacting with their customers. Recently, many large-scale companies, like Neiman Marcus and JcPenny's, are filing for bankruptcy to recover some of the significant losses they have seen over the last period.

For small businesses, the impact may be even more detrimental. According to CNBC, bankruptcy filings went down in April, except for small businesses. The filings jumped 25% in April with more filing expected in May and throughout the summer.

The fear of creditor harassment

Harassment in any form is a terrifying experience. Oftentimes, it leaves people uneasy and fearful of how they can move on from their harassers. It's particularly challenging when you are receiving harassment due to your debt.

Many people who experience debt also experience creditor harassment, where bill collectors call your home, your work and threaten legal action over your unpaid debt. Some collectors may go as far as to contact family members or friends in hopes of getting money from you.

Can bankruptcy give you relief from student loan debt?

For many professionals in the United States, an advanced degree forms the foundation of their career. However, the student loans required could be a crippling burden. The amount of student loan debt totals a record $1.6 trillion, and many will be unable to fully repay this debt.

Over the past several decades, the United States government has made it more difficult to have student loan debt discharged as a part of bankruptcy. This has led to many believing that it is impossible to do. However, the court may discharge student loan debt if you can show that the debt constitutes an undue hardship.

Chapter 7 vs. Chapter 13 bankruptcy: What's the difference?

When you are drowning in debt, getting constant harassing calls from creditors, you more than likely are tired of being stressed about your finances. You may be losing sleep at night, feeling like you'll never escape this debt. You might be considering filing bankruptcy. Yet, you don't know that much about it. Should you seek Chapter 7 bankruptcy or Chapter 13? What is the difference between these two forms of personal bankruptcy? 

Dealing with the emotional aspects of being in debt

It may come as no surprise that dealing with financial challenges can be stressful and intimidating. Studies indicate that similar hardships could leave many individuals in Ohio struggling with feelings of shame or regret. Finding ways to overcome such feelings and focus on creating a plan to seek debt relief may seem challenging at times, but it could also be vital to safeguarding one's financial future.

Studies note that around 75% of American households carry at least some form of debt. Although experts advise that certain types of debt may play an essential role in one's life, the idea of being in debt can still be troublesome. A recent survey reports that many consumers say they experience feelings of shame and embarrassment about being in debt.

Making changes after pursuing relief from the trials of debt

Being free of the trials of monetary strain is a goal for many families in Ohio and across the nation. However, those who are able to eliminate their debts may find that the process doesn't always end there. Individuals who fail to address the issues that put them into debt and make the necessary changes could end up falling back into similar hardships in the future, and subsequent bouts with high levels of debt could prove challenging to manage.

After paying off a significant portion of debt, it might not be uncommon for many individuals to find wish to celebrate their newly found financial freedom. Unfortunately, such endeavors can prove financially costly as times and in some cases, celebrating a sudden increase in income could cause a person to dive back into periods of monetary struggle. Those who achieve the goal of obtaining relief from debts may find that taking steps to help keep such issues at bay may prove imperative.

Small business debt and the rise of online shopping

With the recent advancements to online shopping and the emergence of online retail giants, it is no wonder some smaller companies find it challenging to keep up at times. Small business owners in Ohio who do not have the resources available to launch a major online campaign may stand little chance of keeping customers from turning to other sources for their wants and needs. As more and more consumers turn to the internet to purchase even everyday items, owners of brick and mortar stores may only continue to struggle under the weight of small business debt.

With companies such as Amazon offering products and services for nearly every walk of life, such levels of competition can have a significant impact on small businesses. However, these companies aren't the only ones affected by online shopping, as reports indicate that even larger retail stores are struggling to keep up. Reports suggest that retail bankruptcies are once again on the rise, with as many as 22 companies seeking relief from debts in 2019.

What determines bankruptcy and who does it affect?

Bankruptcy is not a chosen financial strategy. It's often a last resort. Think of bankruptcy as a financial recovery blanket when other options have been exhausted.

Bankruptcy is a blanket that keeps you warm 100% of the time, but if applied correctly, it will, over time, heat up your financial recovery and allow you a new financial beginning.

Bankruptcy: Changes coming to credit score evaluation models

Many individuals in Ohio and elsewhere may be aware of the impact their credit scores could have on various areas of their life. However, they might not always fully understand how quickly circumstances can change and how any modifications to scoring models could affect their financial prospects. With recent reports suggesting changes to scoring models could be on the way, those who begin to experience bouts with financial hardship may benefit from consulting with a bankruptcy attorney for advice on how best to safeguard their finances.

Recent reports indicate that FICO is reevaluating the current models for determining credit score. Reports indicate the company is considering making changes to the process that could lead to a more seamless borrowing process for creditors. However, reports also indicate that this new model could cause as many as 40 million consumers to see up to a 20 point drop in their credit scores.

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