There are many advantages to having credit cards and likely just as many reasons not to have them. The successful navigation of credit card debt depends on the account holder's ability to manage the payments. Many Ohio consumers file for bankruptcy protection to responsibly address past due payments that have simply become unmanageable. Often, the situation arises when unanticipated medical or other emergency expenses were charged to a card.
Consumers in Ohio who are concerned about their struggle to manage monthly credit card payments because they have too many cards may be considering closing some of their cards. However, under certain circumstances, this may not be a wise decision. Although it is true that overwhelming credit card debt issues can possibly be resolved by filing for bankruptcy, there may be other options.
Financial difficulties can lead to tension in relationships. While many Ohio couples may realize that personal bankruptcy may provide a fresh financial start, they may procrastinate because they have many unanswered questions. Although many may believe married couples have to file jointly for bankruptcy, this is a myth. One spouse can file individually.
Hastings Entertainment -- a retail chain selling books, music, video games and movies at 126 locations in various states, including in Ohio -- has announced that it is seeking potential buyers. The company recently filed for Chapter 11 bankruptcy, seeking protection while waiting for interested purchasers. It will keep the doors open for another 30 days in anticipation of an offer.
Some Ohio consumers who are struggling to pay their bills find it difficult to prioritize which debts to pay first. Financial advisors suggest consumers pay those items that are essential in their lives. Typically, a roof over one's head is most important -- regardless of whether it is a mortgage or rental payment to be made. The second most important item is transport -- especially if a person needs a car to get to work. If there are no funds to pay these essentials, it may be time to consider bankruptcy.
Ohio consumers who are facing overwhelming debts might share the opinion that debts must be paid at all costs. It is often said that all avenues should be tried before filing for bankruptcy, though the most sensible remedy may be to file for personal bankruptcy before all assets such as retirement accounts are drained. Why would a consumer expose him or herself to debt collectors and other creditor's harassing actions rather than opt for the protection of bankruptcy?
Filing for bankruptcy in Ohio is a complicated process and may be best navigated with the guidance of an experienced bankruptcy attorney. He or she can explain the pros and cons of the different types of bankruptcies -- called chapters. Individuals typically have to do a means test to determine whether they qualify for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 brings debt relief within months, while Chapter 13 takes between three and five years.
Job loss is not something wished upon anybody, and the financial stumbling blocks may be overwhelming. Even if expenses are cut to the absolute minimum, with no income, there may be no money to cover debt obligations. The U.S. Bankruptcy Code may offer an Ohio consumer the opportunity to have some debts discharged, allowing him or her to regain financial stability. Filing for bankruptcy, however, is not an option to choose without being fully informed of the pros and cons.
Ohio consumers who are fighting a battle against overwhelming credit card debt may find comfort in learning that remedies are available. Some believe that many people's financial problems are caused by a few bad spending habits. Habits are hard to break, and recognizing the problem may be a good start. It may be necessary to go through personal bankruptcy before starting fresh with healthier money habits.
Following the spate of clothing retailers to file for bankruptcy, PacSun -- a retailer of surfwear with about 600 stores nationwide, including in Ohio -- is the latest to follow that route. The retailer filed for Chapter 11 bankruptcy, announcing that it was a well-planned move to reorganize and restructure the company. Raised levels of competition and the increased popularity of online shopping were cited as part of the reason for the company's failure to show profits in recent years.