Top 10 reasons people file chapter 7 bankruptcy in Ohio?

Many individuals in Ohio file for bankruptcy every year. The reasons that it occurs are often varied and complex. Every bankruptcy case is a little different. Here are the top 10 reasons people file for Chapter 7 bankruptcy in Ohio.

Deal With Credit Card Debt

A main reason that Ohio residents declare Chapter 7 bankruptcy is due to overwhelming credit card debt. Chapter 7 bankruptcy can discharge all credit card debt except credit card debt that was fraudulently incurred. This can allow a family to finally start saving money again.

Halt Foreclosures

A variety of things happen instantly after someone files for Chapter 7 bankruptcy. The Foreclosure process stops until the end of the bankruptcy case or unless the bankruptcy court grants permission to let it start again. Some Ohio residents use Chapter 7 to halt foreclosures until a deal can be worked out to save the house. If chapter 7 fails then a chapter 13 case may be necessary.

Stop Collection Calls

Calls from collection agencies seeking payments for overdue bills can become a real problem at home or work in Ohio. People frequently file for Chapter 7 bankruptcy in order to stop those calls. A court order will prevent the collection agencies from contacting the people who declared bankruptcy.

Overwhelming Medical Bills

A major reason people in Ohio file Chapter 7 bankruptcy is due to overwhelming medical bills. Even small procedures or normal medical care can lead to massive bills that can never be fully paid. Chapter 7 bankruptcy can eliminate all those medical bills fast.

Prevent Repossession

People in financial trouble sometimes face repossession of critical assets like a vehicle. Filing for Chapter 7 bankruptcy will prevent repossessions from happening. This gives those people a chance to work out a deal to keep the assets. Again if a deal cannot be worked out for the vehicle then a chapter 13 case may be necessary.

Start Rebuilding Credit-Getting a Fresh Start

A number of Ohio residents file for Chapter 7 bankruptcy to simply start rebuilding credit and to get a fresh start financially. Although it may take some time for your credit to bounce back to pre-bankruptcy levels, bankruptcy is a way to wipe the slate clean. This is invaluable for many people who want to have good credit again.

Job Loss or Extended Unemployment

People who lose a job and are unemployed for a long time can accumulate large debts. Filing for Chapter 7 bankruptcy can remove most or all of those debts accumulated during a period of extended unemployment. It could be the only solution.


Life after a divorce can be very financially difficult. Many Ohio residents file for Chapter 7 bankruptcy after a divorce. This could be due to reduced income or child and spousal support payments that have been filed against a debtor.

Lawsuits and Court Judgements

Chapter 7 bankruptcy is often filed in Ohio due to lawsuits and court judgments. Someone might not be able to pay a court judgement leading to financial problems. Chapter 7 bankruptcy can potentially discharge eligible debts from lawsuits.

Illness or a Disability

A final common reason people in Ohio file for Chapter 7 bankruptcy is illness or disability. An illness can take away the ability to work, earn money and handle everyday responsibilities. Filing for bankruptcy is sometimes the sole solution when someone falls into this situation.