Across the United States, more than 770,000 people filed for bankruptcy in 2018, according to the U.S. Courts. Nearly 500,000 of those cases involved liquidation bankruptcy or Chapter 7, which wipes clean most financial debt people owe to various creditors. One major cause of these bankruptcies involves the high rate of medical debt in the country, and the inability to pay off health care expenses accumulated from surgical procedures, injuries, emergency room visits and treatment for chronic conditions. In fact, 62% of people who filed for bankruptcy listed medical expenses as the main reason for their inability to keep up with their financial obligations.
As an Ohio resident who is facing mounting bills that have become more than you can reasonably manage, you may be wondering what you can do to escape the seemingly constant barrage of phone calls from creditors and debt collectors. You may, too, have heard that bankruptcy’s automatic stay period can give you at least temporary relief from some of these communications, but you may not fully understand what happens during this period.
Your bankruptcy will probably start with questions and end with a clearer financial future. Do you need to file for Chapter 7 or Chapter 13? Do you have assets you could sell off before you begin the bankruptcy process? Have you paid debts that the court could reclaim during the procedure? These are some of the things you might want to ask yourself before you begin the bankruptcy process in Ohio.
Business owners regularly face a plethora of challenges, especially those who run a small business and are experiencing financial strain. As a small business owner, you may be worried about how the debt you have taken on will impact your business in the months and years to come, and you may be unsure about how you should handle this situation. For some small business owners, bankruptcy is an excellent way to clear debts and move forward. However, there are many different factors to go over before filing for bankruptcy.
As an Ohio resident who recently filed for bankruptcy, you may be working to get your finances back in order in the aftermath of doing so, and part of this process will entail rebuilding your credit. At Kennel Zeigler LLC, we recognize that rebuilding credit is an important part of the bankruptcy process, and we have helped many clients facing similar circumstances work to navigate this and other bankruptcy-related issues.
If you are one of the many people in America who are overwhelmed with credit card bills, medical expenses, mortgages and other forms of debt, you may be familiar with receiving continuous calls from creditors and collection agencies. Collection agency representatives may call at all hours of the day and night and may even threaten to take legal action if you don't make payments on your debt. In some cases, creditors have threatened to throw the debtor in jail or even take their children if they do not pay up. An automatic stay keeps these creditors and collection agencies from contacting you during the bankruptcy process.
If you are currently living with mass amounts of debt in Ohio, you may feel increasing pressure to do something to relieve yourself of your overwhelming financial obligations. While bankruptcy is a great way to get a fresh start, you may not be eligible for either Chapter 7 or Chapter 13 bankruptcy. Moreover, it may simply not be the best debt relief option for you. If it is not, you may wonder what, if anything, you can do.
It can be difficult to make ends meet each month without the added stress of extra debt. You might be juggling credit card bills, medical payments and student loan debt, which can make it especially frustrating if you start receiving mail and phone calls for something you didn’t spend money on. Should you be forced to endure creditor harassment or make payments on a debt that isn’t yours? This is not an uncommon occurrence for residents of Ohio and elsewhere, so you may be interested in learning how to deal with this issue.
Filing for bankruptcy is one method many people across Ohio use to help themselves regain their financial footing, but there are certain behaviors and lifestyle changes you will need to make after doing so. In addition to watching your spending and making sure to stay on top of all your bills, you will also need to consider how filing for bankruptcy will affect you, come tax time. At Kennel Zeigler LLC, we have a firm understanding of how filing for bankruptcy can impact your taxes, and we have helped many clients navigate their way through this and similar matters.
Bankruptcy has a significant effect on one’s credit score, as well as their ability to apply for credit cards, home loans and other important financial support. Once a creditor spots a bankruptcy on an applicant’s record, they may be alerted to the fact that he or she has trouble meeting their financial obligations. There are ways that debtors can rebuild their credit following a bankruptcy, including applying for subprime credit cards. These types of credit cards are designed for people who struggle with bankruptcy, as they will approve those who have a bankruptcy on their record. Experts warn people who apply for these credit cards that high interest rates and fees could lead to more financial trouble.