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Cincinnati Bankruptcy Law Blog

Pursuing relief from credit card debts through bankruptcy

Many individuals in Ohio and elsewhere consider having a good credit score to be vital to maintaining a healthy financial future. Unfortunately, there are a variety of monetary concerns that can impact a person's credit, such as dealing with substantial amounts of credit card debt. Those who wish to protect their finances may wish to know more about how to stave off credit card debt and when it might be advisable to pursue financial relief through bankruptcy.

One common concern with credit cards is they may give consumers the ability to make a purchase they would otherwise be unable to afford. Experts suggest that avoiding these purchases could be essential to preventing unnecessary financial strain. Financial experts also indicate that limiting the amount of accounts one applies for can be beneficial, as carrying multiple cards at once may only entice a person to make additional purchases.

Bankruptcy: Knowing all the available outlets for debt relief

There are many individuals in Ohio who are constantly struggling to keep up with monetary obligations. Those who encounter significant financial concerns may find themselves in search of some much-needed debt relief, but forming a strategy to reduce debts can be an intimidating task. Besides bankruptcy, many may be unaware of the outlets available to help them reduce or eliminate financial burdens.

For those who experience periods of financial struggle, in some cases, it may take little more than a strict budget to achieve monetary stability. Should forming a budget prove unsuccessful, one could also consider attempting to reach out to creditors and request information on any available hardship programs. Unfortunately, with accounts that are already past due, negotiation might not always be a viable option.

Bankruptcy: Identifying the sources of financial burden

For many individuals in Ohio and elsewhere who are experiencing major financial struggles, debts may come from the usual suspects, such as medical and credit card bills. However, some may have more difficulty identifying the source of their financial concerns. Even though these sources can be challenging to detect, they can still create a heavy financial burden and leave a person in search of relief through outlets such as bankruptcy.

When it comes to dealing with debt, a person's first instinct could be to divide additional income evenly among all financial obligations. However, experts suggest that similar decisions may do little to resolve one's balances, especially those with high interest rates. In some cases, a person may also feel it is necessary to dip into savings accounts to pay down on debts, such an action could have long-term consequences that might leave a person unprepared for the future.

Understanding one's options when facing foreclosure

While purchasing a home can be fulfilling, taking on a mortgage can be a major financial obligation. Individuals in Ohio who encounter times of monetary unrest may find it challenging to make their monthly payments, and should their troubles persist, they could grow concerned that they will end up facing the possibility of foreclosure. Those who face such hardships may benefit from knowing that there are options that may help them avoid a similar outcome.

Once a person stops making payments on a mortgage, creditors may seek to recover financial losses by attempting to repossess the home through foreclosure. Upon encountering periods of monetary strain, a person who wishes to retain ownership of a home may find it helpful to reach out to creditors as soon as possible. In some cases, lenders might be willing to offer a reduction or suspension of payments, but this option is generally only temporary.

Hiding assets in a bankruptcy can land you in prison

You and your spouse worked hard to open your small business. Maybe it was even a garage start-up that you grew into a viable company over the years. It's more than just another asset. It's almost like another child, something you created and nurtured.

But you have a debt mountain that accrued in the lean years when you lived off your plastic and lines of credit. You invested everything into the business, and it paid off. But now, you're afraid that your personal financial state could jeopardize your business.

Debt collection: When credit card accounts fall past due

Credit card debts continue to be a growing concern for many families in Ohio and elsewhere. Even accounts that fall one or two months behind could be sent to debt collection agencies, and the impact this could have on a person's finances can be substantial. However, many individuals may still be unaware of exactly what takes place when a credit card account falls past due.

There are a variety of situations in which a person's credit card account may become past due. While in some cases, the strain of other debts may leave a person incapable of meeting the minimum amount due each month, studies indicate the most common reason for past due accounts lies in simply forgetting to make the payment. Regardless of how it happens, just one past due payment on a credit card can bring about dire consequences.

Bankruptcy: Rising costs of medical care affects many seniors

As individuals advance in age, the likelihood they may experience a medical emergency may increase substantially. While many may be prepared to accept this inevitability, they might not be ready to face the accompanying financial responsibilities it can bring. With health care costs that are constantly on the rise, studies indicate that many elderly individuals in Ohio and elsewhere have found themselves in search of relief through bankruptcy.

Over the past 27 years, the rate of senior citizens who have chosen to pursue relief through bankruptcy has reportedly tripled. Although these individuals may experience financial strain under a variety of circumstances, the leading cause of debt late in life pertains to medical bills. At this age, it might not be uncommon for a person to also see a substantial decline in income, which makes the rising costs of medical care all the more imposing.

Bankruptcy: Credit card debts can put a strain on finances

When facing periods of financial strain, many individuals in Ohio and elsewhere may turn to credit cards in their time of need. While similar lines of credit may provide immediate financial assistance, the relief may only be temporary. With average interests rates on similar accounts coming in at nearly 17 percent, issues with high amounts of credit card debt may leave many in search of relief through bankruptcy.

Credit card debts remain one of the leading causes of financial strain across the nation, and recent studies indicate that Americans paid just over $100 billion in interest alone over a recent 12 month period. Those who struggle to make payments on credit accounts may initially choose to pursue relief through a variety of methods, such as a personal loan. Since the interest rates on a loan may be significantly lower, those who qualify could use this as a financial tool to pay off high-risk debts.

Bankruptcy: Knowing the difference between good and bad debts

With studies indicating that the average household carries $38,000 in personal debt, many families in Ohio and elsewhere may be experiencing periods of financial hardship. While taking on certain amounts of debt may seem like a part of life, the subsequent monetary obligations can place a person under a significant amount of financial pressure. Those who find themselves struggling to make a living due to high amounts of debt could benefit from seeking advice on how to pursue relief from a bankruptcy attorney.

With average amounts of household debt coming in at around $1,000 more than the previous year, studies suggest more individuals have felt comfortable taking on new debts. However, studies also indicate that the average person may have some level of difficulty understanding the difference between good and bad debts. Of those surveyed in the study, nearly 20 percent of individuals admitted to believing that mortgages were bad debts.

Bankruptcy: Changes proposed re student loans and undue hardships

The pursuit of a college education is a goal for many individuals in Ohio and across the nation. However, with the staggering costs of tuition, a similar endeavor has left many struggling to pay back student loans for extended periods. For those who experience substantial financial hardships due to student loans, seeking relief has previously proved challenging, but that could change if the proposed modifications to how student loans are handled in bankruptcy are passed into law.

According to recent studies, more than 40 million Americans carry student loan debts. Those who experience prolonged periods of financial difficulty due to similar debts may also find it nearly impossible to find relief, as discharging student loans in bankruptcy may seem nearly impossible. Under current law, a person must prove that continuing to carry similar financial obligations will lead to undue hardships that lower his or her standard of living substantially.

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