What are the 10 Most Common Reasons People in Columbus, Ohio File Chapter 13 Bankruptcy?
Bankruptcy is not an easy decision for anyone. Unfortunately, it may be the only decision for some people trying to keep their heads above water in uncertain times. Residents of Columbus, and Ohio in general are continuing to face economic uncertainty that wreaks havoc on their finances.
1. Unemployment rates higher than the national average: This is one of the main reasons that people file for Chapter 13 Bankruptcy Protection— to keep from losing everything they have worked for when they lose their job, to include their home and their vehicles.
2. To save their home: Many people in Ohio were caught up in the mortgage crisis during the recent recession. They may have signed for a mortgage that they could afford at the time, while being assured that refinancing their adjustable rate loan soon was an option. When the housing market crashed, it took away most people’s ability to refinance due to the fact that they now owed far more than their homes were worth. Chapter 13 allows stops foreclosure and allows them to catch up.
3. To stop repossession: Chapter 13 Bankruptcy can afford you protection from repossession and allow you to catch up on your arranged payments and keep your car.
4. Medical problems: Many people get into financial trouble because of medical bills. Particularly if you are uninsured or under-insured, the bills can quickly stack up in the case of a major illness or accident.
5. Car accidents: Some drivers are involved in car accidents and do not have sufficient insurance coverage to pay for all the damages.
6. Lawsuits: Being sued, whether fairly or not, can be a huge problem for someone’s financial situation. A judgment from a lawsuit can lead to wage and bank garnishments. These can be stopped with a Chapter 13 bankruptcy filing.
7. Credit cards: Many people get addicted to plastic, since it is a means to get what you want now, instead of waiting. Unfortunately, it is extremely expensive and the debt mounts up quickly.
8. Cosigning: When a good friend or relative asks you to cosign, you naturally want to help out. However, it can be a really bad idea, especially if the cosigner defaults on the debt. The only escape from this problem may be a Chapter 13 bankruptcy.
9. Divorce: Often a divorce causes undue financial grief on one or both parties, and the only means of relief is to file for bankruptcy protection.
10. Stop harassment and collection calls: If a person’s life consists of one threatening call after another from debt collectors, filing Chapter 13 can keep them at bay and allow a person to get back on their feet.
To decide if your situation warrants filing bankruptcy, consult a reputable bankruptcy attorney for advice and to find out the best option for you.