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Cincinnati Bankruptcy Law Blog

Bankruptcy: Knowing the possible risks of a balance transfer

Upon experiencing extended periods of financial strain, individuals in Ohio may wish to seek advice on all their available options for debt relief. In some cases, the pursuit of relief could lead some to consider transferring their outstanding balances to a new credit card account with promotional interest rates. While a balance transfer could be helpful in certain scenarios, in some cases it may only prove a temporary solution while bankruptcy might be just the tool with which to seek a healthier financial future.

Transferring balances on high interest rate accounts to accounts with periods of lesser or no interest may seem favorable under any circumstance. However, there might be some potential downsides to a similar option. For instance, there could be fees associated with moving a balance to the new account and the introductory rates associated with the account typically only run for a short period of time.

Negotiating for credit card debt relief might not always help

High amounts of debt can have a devastating impact on a person's financial stability. Individuals in Ohio who struggle under the weight of monetary obligations such as credit card debt may be left seeking out ways to obtain relief, and in some cases, they may choose to start with negotiations. While negotiating with creditors might prove fruitful under certain circumstances, sometimes a more long-term solution might be necessary.

When high levels of credit card debt place strain on one's finances, a person may have the option of reaching out to creditors and negotiate. There are several potential options for seeking relief through similar methods. In some cases, a creditor could offer to allow a debtor to pay a lump sum for the balance, and while this payment could be less than the original amount owed, coming up with the funds to fulfill this offer could prove challenging.

Could bankruptcy help me to live a happier life?

Financial problems can be a heavy burden to carry. Knowing that you have unpaid bills and unmanageable debts can be a constant source of worry, and the worry alone can lead to issues such as anxiety and depression. Unfortunately, many people who are facing huge financial difficulties experience aversion, and they bury their heads in the sand instead of taking positive action to change their situation. This ultimately leads to a downward spiral that will never solve itself.

If you are facing financial difficulties, you may be feeling unmotivated and unsure about what action to take. There are many untrue claims made about filing for bankruptcy, but it remains one of the most successful ways for individuals and families to get out of debt. The following are some of the ways that bankruptcy may be able to help you live a happier life in the years to come.

Bankruptcy: How issues with debt could impact a person's health

It is no secret that dealing with extended periods of financial strain can be a stressful and daunting process. However, some individuals in Ohio may be surprised to find that similar issues could lead to long-term health concerns. Those who wish to prevent issues with debt from affecting their health may find it beneficial to consider exploring the relief provided through outlets such as bankruptcy.

There are a multitude of circumstances in which a person may begin to experience periods of financial strain. For instance, studies suggest that individuals with high levels of student loan debt may encounter high levels of stress. However, studies also indicate that similar forms of debt may be viewed as a right of passage, while financial concerns such as credit card might not always serve a purpose.

Credit card debt is on the rise for millennials

The trials of financial strain can take a toll on individuals in Ohio and elsewhere regardless of their age. However, the most common financial issues a person may encounter could vary depending on his or her age. While reports suggest that millennials have avoided certain high risk debts over previous years, studies indicate that credit card debt among this age group has recently experienced a substantial increase.

As many grew up during the recent financial troubles of the Great Recession, studies indicate that many millennials have previously avoided taking on high levels of credit card debt. However, recent reports indicate that the number of credit card accounts in delinquency has risen significantly among this age group. While there could be a variety of reasons for this rise, reports indicate that rewards offers continue to be a contributing factor.

Bankruptcy: How waiting to pursue relief could prove detrimental

While dealing with debt can be a stressful process, choosing a strategy to reduce financial obligations may seem equally as intimidating. While many individuals in Ohio may be aware of the possible benefits of seeking relief through outlets such as bankruptcy, they may have reservations about starting the process. However, while taking time to consider the options could be helpful, when it comes to debt, waiting to seek relief could have consequences.

Upon signing up for a credit card or taking out a loan, one may be aware of the interest rates associated with the account. However, simply knowing the rates involved might not help a person understand just how much money he or she could end up paying in interest overall. High interest rates may only cause one's balances to continue to rise, and the resulting increase in debt could leave a person with less income to cover other financial needs.

Pursuing relief from medical debt through bankruptcy

While many individuals in Ohio and across the nation may wish to maintain financial stability at all costs, some forms of debt could prove difficult to avoid at times. For instance, a medical emergency can take place at any given moment and the financial ramifications of a trip to the hospital can be extensive. Those who suffer under the weight of medical debt may feel forced into borrowing money to pay their bills or they could choose to seek relief from their debts by filing for bankruptcy.

Recent reports indicate that medical bills are the leading source of debt among families across the nation. According to reports, nearly one out of every eight patients over the past year was forced to borrow money to pay medical bills. This study also indicates that around 25% of those surveyed admitted that their medical expenses prompted a need to cut down on expenses.

Should I delay filing for bankruptcy?

Arriving at the decision to file for bankruptcy is not easy. It essentially means that you are accepting financial defeat and that you need the help of the government to gain a fresh financial start. However, this does not mean that you should feel ashamed of needing to file for bankruptcy.

Raising a family and facing unforeseen circumstances can create financial turmoil for anyone. It is important that you thoroughly consider your options so that you can move forward in the best possible way.

Bankruptcy: Credit card debt levels continue to rise

There are many individuals in Ohio and across the nation who have made the decision to apply for a credit card, some of whom may carry several cards at the same time. While similar accounts could prove helpful in building credit under the right circumstance, carrying high balances for extended periods could increase the risk of financial strain. With balances constantly on the rise, credit cards debts could leave many individuals in search of the relief provided through outlets such as bankruptcy.

Recent reports from the Federal Reserve indicate that credit card debt across the nation reached record levels in the last quarter of 2018. These reports also stated that Americans piled on around $26 billion in credit card debt in the fourth quarter alone. According to reports, there are more than 480 million active credit card accounts, 37 million of which were reported to be at least three months past due.

Bankruptcy: Co-signing on a loan has its risks

Many individuals in Ohio and across the nation may consider it vital take all the necessary measures to protect their financial futures. However, there are some circumstances in which another person's actions could leave a person facing dire financial straits. For instance, one who co-signs on a loan may take on a certain level of risk in the process, and if the other party fails to make the necessary payments, the situation could leave a person in search of relief through outlets such as bankruptcy. 

While the concept of helping another party qualify for a loan to buy a car or become eligible to rent an apartment may appear noble, there are certain risks involved. Even if the other party agrees to make the payments, the co-signer still takes on a certain amount of responsibility in the process. Should payments fall behind, the impact it can have on the credit scores of both parties could be substantial.

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