Residents of Ohio who are facing high medical bills may be interested to learn that the Consumer Financial Protection Bureau has been looking at how this type of debt is reported to credit agencies. The federal agency is being pressed by consumer groups to look further into the issue and has also assembled its own report on the topic, held a hearing and focused on it in a meeting of the Consumer Advisory Board.
Ohio consumers who are struggling with overwhelming financial obligations may wonder whether it makes better sense for them to attempt a debt consolidation, enter into a debt management plan or simply to file for bankruptcy. The answer to that question largely depends on the individual situation of the debtor.
When an individual files for bankruptcy, there are many items that he or she may expose liquidation. What a bankruptcy trustee may be able to take depends on the type of bankruptcy case and exemptions allowed by state and federal law. In addition, there are some actions that should be avoided if a person wants to protect as many assets as possible.
When an individual wishes to file for bankruptcy, they will usually file for Chapter 7 or Chapter 13 bankruptcy. Those who run a business as a sole proprietor may also file for either of these forms of debt relief. Regardless of the type of bankruptcy that an individual is filing for, they must complete credit counseling no more than 180 days before filing.
If someone has unpaid taxes, they may be able to discharge them by filing for bankruptcy. In most cases, tax debt is not eligible to be eliminated with a bankruptcy, but there are certain situations where this is possible. Generally, a Chapter 7 filing will be more likely to eliminate this type of debt than a Chapter 13 filing, as Chapter 13 reorganizes debt and does not necessarily discharge it.
Debt can be an exasperating issue faced by many people. It can get out of hand, leading to financial problems and potentially affecting credit scores. Ohio residents may even find that they have become unable to afford payments when their circumstances have changed, whether temporarily or permanently. Filing for bankruptcy can help people get a fresh start with their finances and bring relief from the stress that can accompany large amounts of debt.
Many Ohio residents are concerned about their mounting hospital bills. Medical debt is unlike other debts, such as credit card debt, because it is so difficult to predict. It can also be difficult to control since the amount of medical therapy and treatment that will be needed is usually unknown to the patient.
Many Ohio residents who plan on filing for bankruptcy don't need to worry about losing their Social Security benefits in the process. Nevertheless, the Social Security Administration does recognize certain exceptions to the bankruptcy exemption rule for benefits. The agency also cooperates with other government entities when deciding whether or not benefits should receive protection.
Ohio residents going through bankruptcy will learn that some debts will not be discharged. These include taxes that the government assessed within 240 days of filing for bankruptcy and most outstanding student loans. Other debts that will not be discharged also includes criminal fines and DUI-related debts and most obligations resulting from a divorce order.
Ohio residents who are considering filing for personal bankruptcy may wonder about how the process works. There are strict requirements that must be followed before a judge will accept a filing or discharge a person's debts.