If you find yourself overwhelmed and completely suffocated with medical bills, credit card debt or utility bills you cannot pay, it is easy to feel hopeless, anxious and depressed all the time. The first thing you need to realize is you are not alone when it comes to dealing with debt, and you have options when it comes to a fresh financial start. Bankruptcy laws can be complicated and complex, and it is often tough to admit you need help, but not every fact you have heard about bankruptcy is true. For you to feel comfortable about filing for Chapter 7 or Chapter 13 bankruptcy, we have a few truths for you.
Out of all of the people who have participated in higher education over recent years, a significant percentage has left their educational institution with large amounts of student loan debt. In an ironic turn of events, some who have pursued education to ensure a way to provide for themselves and their loved ones have been unable to do so because of the cost of their education.
One of the most common questions asked of bankruptcy attorneys is, "how will it affect my credit score?" People dread the thought of a tanked credit score following them around for the next ten years. Typically filing for bankruptcy will lower your score, but it will not ruin your score for a decade. There is no magic number stating how many points your score could drop because it all depends on your acquired debts and current credit status.
Being behind on your bills is an incredibly stressful experience. All the contact from creditors and collection agencies only makes things worse. While at first this contact might be seen as "friendly reminders," eventually it can turn into creditor harassment, and there are ways you can stop it.
Bankruptcy can seem like a naughty word. But declaring bankruptcy does not necessarily indicate financial irresponsibility. Rather, the decision to declare bankruptcy indicates a willingness to accept one's situation. You are prepared to move forward in the face of financial difficulty.
For many people in Ohio who have large amounts of debt, one of the big sources might be medical debt. A big piece of a person's credit information is tied to their outstanding debts; as people who have gone through a serious illness or injury knows, medical bills can add up quickly -- even to the point of spiraling out of control.
People in Ohio who are struggling with credit issues may find that no matter what they do, they aren't able to significantly reduce their credit card debt. Some of that is the nature of the beast; the higher the credit card balance, the more a person is charged in interest. A path to credit restoration might be a very long one indeed for people who only pay the minimum payment every month. The overall balance barely goes down, and the card holder pays mostly interest every month, rather than paying down the principal.
Even with ads and catchy jingles on the radio, few people here in Ohio really think about their credit scores on a regular basis. Then again, if you’ve ever had to file for bankruptcy or are considering it right now, this statement couldn’t be further from the truth. So what do these people know about their credit score that many people don’t and how can readers new to our blog use that information to help themselves down the road?
We wrote on our blog recently about how credit card debt around the country has fallen in recent times. Large amounts of credit card debt, for Ohio residents and others around the U.S., can increase financial headaches and keep credit scores down -- thus making it difficult to qualify for favorable rates on loans or mortgages. This can mean that having lots of debt without ever paying it off can have a very real effect on a person's living situation.
For many people, the economic difficulties of the past few years have been a big wake-up call. When the recent recession was at its bleakest, many people in Ohio and around the country found themselves saddled with onerous credit card debt and a poor credit score.