Dayton Bankruptcy Law Blog

Ohio residents who file for bankruptcy will have their assets placed in a bankruptcy estate. The estate is a separate entity that is overseen by a trustee, and his or her exact duties will vary based on the circumstances of a given case. If a person files for Chapter 7 bankruptcy, a trustee will be tasked with gathering a debtor's non-exempt property, selling it ,and distributing the proceeds to creditors.

The trustee could also be tasked with challenging claims made by creditors or challenging an attempt to have a case discharged. In a Chapter 13 case, a trustee plays a role in reviewing and approving a debtor's payment plan. This person may be allowed to object to a plan if there is reason to do so. If a repayment plan is approved, a debtor will make payments to the trustee, and he or she will distribute the proceeds received to creditors.

Many millennials in Ohio and throughout the country have student loan debt. However, a study from Northwest Mutual found that credit card debt may be hindering their ability to save for the future. Credit cards can come with interest rates above 20%, which is significantly higher than what a person would likely pay to finance the purchase of a home or car. That is also higher than the interest rate charged by most student loan companies.

The study found that 20% of millennials don't even know the interest rate on their credit card balances. Research has found that younger debtors use their credit cards to pay for food and travel. They typically begin using credit cards because they received applications in the mail. It isn't uncommon for millennials to have as many as four credit cards with balances on them at the same time.

Ohio residents may have noticed that the household income in the United States has risen by around 30% over the last 10 years. This is a good thing for many families because it affords them space in their budget to save money. At the same time, the costs of medical expenses have risen by 33%. Medical expenses have caused some households to take on debt, including credit card debt.

Putting medical debt on a credit card could mean paying high interest rates. Families can find themselves so far into debt that they do not have what it takes to even keep up with the interest payments. Thankfully, there are some things that people can do to keep medical debt off their credit card.

The number of people filing for bankruptcy in Ohio and around the country who are 55 years of age or older has soared in recent years, and most of them are turning to debt relief because of unmanageable levels of medical debt. A study conducted by a University of Illinois law professor reveals that the number of bankruptcies filed by individuals between 55 and 64 years of age has increased by 66% since 1991, and the number of retired Americans seeking debt relief has surged by more than 200%.

This means that more than one in 10 bankruptcy filers is now 65 years of age or older. That figure stood at just 2% in 1991. While some older Americans pursue debt relief because of credit card or installment loan debt, most turn to bankruptcy after using all of their available resources to pay doctor and hospital bills. According to the University of Illinois study, 60% of the older Americans who file for bankruptcy each year do so because they have medical bills that they are unable to pay.