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.
Most of the Ohio residents who file a personal bankruptcy each year do so because of overwhelming medical debts. Figures published recently in the Journal of General Internal Medicine put the number of Americans facing financial hardship due to doctor and hospital bills at 137 million, and about half of the people polled recently by TD Ameritrade said that they would consider using funds that they have saved for their retirement years to pay medical expenses.
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%.
Many people in Ohio may well grow up with the idea that they will work hard during the majority of their life and then retire at some point. Their retirement years are generally expected to be funded by savings, Social Security and maybe even some wise investments. Very few people expect that their retirement years could be marked by the most serious financial problems of their entire life. That, however, seems to be the case for more seniors today than in prior generations.
Personal bankruptcy is a personal choice that you may consider if you are experiencing insurmountable financial difficulties. The option to pursue a Chapter 7 or Chapter 13 bankruptcy is yours alone – or so you may think. What if someone told you that your creditors may petition the court for your bankruptcy against your will?
As a resident of Ohio, you have several options to look into if you are considering filing for bankruptcy. For example, Chapter 7 bankruptcy offers relief from certain debts by allowing you to discharge them. However, it is crucial to note that not every debt you hold can be dismissed through bankruptcy.
Ohio residents who are considering filing for bankruptcy may also be wondering which type of bankruptcy will work best for them. Chapter 13 has many benefits, but it tends to work better for a certain set of people.
Now that your bankruptcy period has ended in Ohio, you likely want to reestablish your credit as quickly as possible. How you go about doing this, however, can make all the difference.
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.