Ohio consumers with overwhelming credit card debt may have questions about the Credit Card Debt Forgiveness Act, particularly if they are unsure whether it will be a suitable remedy for their circumstances. Pursuing this as a debt relief option may be best for consumers who have debts outstanding on multiple credit cards, and want to get reduced monthly payments. It is also a method of avoiding bankruptcy but comes with adverse consequences.
Foreclosure can be halted even if auction date is looming
Adverse financial circumstances -- often caused by employment loss or medical emergencies -- can have severe consequences. Homeowners may even face foreclosure. If an Ohio homeowner is notified of imminent foreclosure, he or she may have questions about the possibility of keeping the home, and what can be done with an auction date looming.
The desired result may not follow a DIY bankruptcy filing
With the availability of online options and do-it-yourself instructions for just about every procedure, Ohio consumers who are experiencing financial problems may choose to search for remedies online. Online instructions may not cover all eventualities, and for a process such as a bankruptcy filing, obstacles may arise that need professional assistance. A skilled bankruptcy attorney can explain the pros and cons of all debt relief options and compare them with those of personal bankruptcy.
Bankruptcy: Which debts qualify as priority debts?
When the debts become overwhelming, Ohio consumers may have questions about their options. While bankruptcy is likely the most appropriate way to achieve financial relief, some so-called priority debts are not dischargeable. These include secured debts such as car loans and mortgages that are secured by property that creditors can repossess to cover unpaid amounts. In Chapter 13, payments can continue as part of court-approved restructured payment plan. However, unless a Chapter 7 filer can catch up with unpaid amounts, and maintain payments after completing the bankruptcy, those assets may be liquidated.
Bankruptcy vs. other debt relief options
The tremendous amount of credit card debt in the country is not only a national problem, but it also affects the lives of many consumers in Ohio. While bankruptcy is a viable option, consumers may want to compare the pros and cons of it with other debt relief options. The most appropriate first step is to make a list of creditors and the amounts owed to them.
