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Cincinnati Bankruptcy Law Blog

Is bankruptcy casting a shadow over your wedding plans?

You obviously think your fiancé, Tim, is a wonderful guy or you would not consider marrying him.

There is only one small issue: Tim has recently declared bankruptcy. You, on the other hand, have sterling credit. How are these opposite circumstances going to exist in a happy marriage?

What is debt consolidation?

When faced with massive amounts of debt, it might seem like there are no options left for you. However, this is far from true, as debt consolidation is one potential solution worth looking into. Consolidating your debt can help lower interest rates, thereby making payments more manageable. Debt.org explains how consolidation works so you can determine whether it's the right option for you. 

There are actually two ways to consolidate your debt. Some people take out a new loan which they use to pay off any outstanding debts they face. This loan often has a better interest rate, which means more of your monthly payments go to the actual principal instead of the interest. Lenders calculate your interest rate based on your credit score, which might not be in great standing after struggling with debt for some time. In this case, you might consider working with a debt management program. 

Eliminating the stigma that surrounds credit card debt

People take on debt for all sorts of reasons, whether they are struggling with a serious health problem or they need to take out loans to attend college or put their child through school. Whenever someone finds themselves buried in debt, they may be judged harshly by those who know about their circumstances, such as friends and family members. This is often especially true when it comes to credit card debt. Some people envision the type of person who racks up credit card debt as irresponsible or addicted to shopping, but this is certainly not always the case.

If you are buried in credit card debt, there may be many different challenges that you are facing which may partially explain your financial circumstances. Our law firm understands the myriad of hardships that people go through which can cause them to take on too much credit card debt. For example, you may have lost your job or your hours may have been cut, causing you to turn to your credit card in order to stay caught up on your bills.

What are some myths regarding chapter 7 bankruptcy?

There is a lot of misinformation surrounding chapter 7 bankruptcy, so being able to distinguish fact from fiction is crucial. After all, you want to rest assured that this is the right option for you and your financial future, which entails a good understanding of the entire process. Nerdwallet explains some of the most pervasive myths so you can make an informed decision. 

It's not necessary to lose all your possessions after filing for bankruptcy. You're allowed to make exemptions, which are basic assets that you need to survive. Although the details can differ from case to case, this usually includes things like a vehicle or the family home. Other assets may not be valuable enough to be included in your case. That means it's unlikely that you'll walk away from the process with nothing, which is reassuring to people mulling over this option. 

How can I use a credit card wisely?

Credit cards are an essential part of many people's finances. Proper use of credit cards is a must, as careless use can lead to financial instability and even bankruptcy in some cases. Accordingly, Money Crashers offers the following tips on how you can use credit cards without incurring a massive amount of debt. 

You probably receive quite a few offers for credit cards each month. While these offers may be enticing, especially if they're coupled with reward programs and other perks, it's not a good idea to frequently switch credit cards unless absolutely necessary. This can actually impact your credit score, which takes a range of different factors into account. If you regularly track spending for budgeting purposes, it can be more difficult if you're constantly changing cards.

How can I identify creditor harassment?

People with debt in Cincinnati are subject to an unbelievable amount of stress. Stress is often compounded by creditor harassment, which occurs when a creditor makes repeated unlawful attempts to contact you to resolve a debt. Creditors are obligated to certain procedures when contacting you, as explained by the Consumer Financial Protection Bureau

There are different tactics creditors use to influence a person to repay a debt. For example, you may be supplied with misinformation on the consequences of non-payment of debt. People are often threatened with incarceration or other consequences that are not possible based on the situation. The person contacting you may also claim to be an attorney when they have no legal background. You may be threatened with a lawsuit or told you owe more money than you actually do to inflate the payout.

Diligence may be the key to managing credit card debt

Credit card debt is a common financial burden for Ohio residents. Paying down their balances may be challenging for many consumers, especially with high interest rates and other fees. However, it is possible to recover from credit card debt with a clear set of goals and a realistic plan.

A good place for many individuals to start is with their credit card agreements. The Credit Card Accountability Responsibility and Disclosure Act Act of 2009 changed many of the regulations and requirements for financial institutions, increasing transparency and providing consumers with essential information. Part of this effort made it easier to understand credit card agreements. The Consumer Financial Protection Bureau provides individuals with access to its database of credit card agreements from numerous issuers and financial institutions.

What is lien stripping?

If you have both a first and second mortgage on your Ohio home and face foreclosure due to the financial hardships you have encountered, you should consider filing Chapter 13 bankruptcy. Not only does a Chapter 13 stop foreclosure in its tracks, it also will likely strip the second mortgage lien on your home.

As you may already know, Chapter 7 bankruptcy is a discharge proceeding that rids you of virtually all of your consumer debt, including credit card debt. It does not, however, save your home from foreclosure. Rather, it only postpones it. Chapter 13, on the other hand, is a reorganization proceeding whereby you renegotiate your various debts, including your first mortgage, and then pay them down over time. Once you file your Chapter 13 bankruptcy petition, none of your creditors, including your mortgage lenders, can take any collection action against you whatsoever.

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Phone: 513-729-7196
Fax: 513-621-6402
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Colerain, OH 45247

Phone: 513-729-7196
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