Some consumers in Ohio have accumulated mountains of debts on store credit cards, and with the holiday shopping season coming up, there will once again be many tempting offers. Signing up for these credit cards typically includes irresistible rewards, and the marketers advertise the benefits in bright lights but never mention the negative aspects of the offers. Many a bankruptcy filing has followed overwhelming store card debt.
Although the intention of the U.S. Bankruptcy Code is to give consumers in Ohio and other states the opportunity to regain financial stability, it also wants to make sure that those who can pay at least some debts do not get them all discharged. That is the difference between Chapter 7 and Chapter 13 bankruptcies. Chapter 7 calls for liquidation of some assets to pay creditors and the discharge of unsecured debts, such as medical and credit card debts. Chapter 13 allows those with a regular income to reorganize their payments into a court-approved payment plan that allows a period of between three and five years to pay debts before remaining balances are considered for discharge.
Some Ohio consumers are overwhelmed with debts that may have resulted from unanticipated medical expenses or job losses that left them no option but to finance their daily living expenses through credit cards. While filing for bankruptcy may be the most appropriate route to go, it is a drastic step that needs careful consideration. Individuals may want to gain all the relevant information to enable them to make informed decisions that may determine financial stability in the future.
Small business owners who are experiencing financial problems may benefit from learning about the available remedies. The federal Bankruptcy Code protects individuals and businesses in Ohio and other states. However, filing for bankruptcy is a complicated process and must be carefully navigated. Things to gather before consulting with a lawyer about a business bankruptcy include an up-to-date set of company books and accurate financial records.
Overwhelming credit card debt is not limited to certain income groups. In fact, in Ohio, it is not uncommon for families with higher incomes to accumulate more debts. In many cases, consumers choose to file for bankruptcy to obtain a fresh financial start. A family in another state explained their struggle to overcome their debt load.
Many consumers in Ohio and elsewhere struggle to avoid spending. Credit cards make it easy for people to spend too much, and before many know it, they are overwhelmed by debt. An international robotics company and a fashion designer recently introduced a gizmo that is intended to help people conquer impulsive buying. The self-locking purse comes with a $5,000 price tag, making bankruptcy a more realistic and satisfying option in most circumstances.
Apparently, many millennials in Ohio and elsewhere are shying away from the use of credit cards. Mountains of student loan debt may be one reason. It also may be a response to the fact that many consumers sought bankruptcy protection during the recent recession because of overwhelming credit card debt.
Unpaid debts can have a detrimental impact on the future financial stability of consumers in Ohio. A scarred credit score can jeopardize a person's ability to obtain a mortgage, get financing for a car or rent accommodation. In many cases, the source of the debt is unanticipated medical debts, and, fortunately, there are manners in which the debt can be reduced, or it may even be possible to get it discharged in personal bankruptcy.
Credit cards are often the cause of consumers having to face mountains of debt with not enough funds to settle the bills. In fact, credit card debt has led to many bankruptcy filings in Ohio. One of the causes for spiraling credit card debt may be the fact that some consumers are unaware that making the minimum required payment every month is a dangerous practice.
Ohio residents who are experiencing financial hardships and fear losing their homes may be considering their options. One of those is filing for bankruptcy, and the intention of the federal Bankruptcy Code is to help people to rebuild their lives. But will that save their homes? The answer depends on several aspects related to the unique circumstances of the individual and also the laws of the state.