Top Ten Reasons People Filed For Bankruptcy in Columbus, Ohio in 2016
The thought of declaring Chapter 7 bankruptcy can be harrowing, yet for people who are deeply in debt, it can be a solution to a very difficult situation. Though in past eras declaring bankruptcy was almost unthinkable, the realities of the economic ups and downs we’ve seen in recent years have made it a solution for many people.
Ultimately, declaring Chapter 7 in Ohio can be a way to make a fresh start and to restart life after a difficult patch. There are many reasons for filing bankruptcy, but several reasons appear commonly among those who’ve gone through the process. Knowing where economic dangers can arise is a way to hopefully avoid these types of problems going forward.
Here’s a look at the top ten reasons for filing bankruptcy in Columbus, Ohio.
1. A Medical Crisis. It’s becoming commonly known that a medical crisis can be financially ruinous, especially if the person lacks health coverage. Even a basic visit to an emergency room, without coverage, can be highly expensive.
2. Job Loss. A job loss that is followed by a long period of unemployment can lead to a precarious financial situation, since bills keep coming in without the expected funds to cover them. If a job loss is accompanied by a loss of health insurance, the crisis can become unbearable.
3. Excessive use of Credit Cards. It’s easy to get into financial trouble quickly by using credit cards that have a high credit limit. If the owner of the cards is unable to pay them off, the interest will begin to mount, creating a hard to solve crisis.
- Divorce. A divorce can be an expensive situation. Assets are divided and there may be child support and spousal support that needs to be paid. These factors can lead to financial issues.
An unforeseen emergency. Some unforeseen events, like a car accident or fire, can bring on expenses that are hard to plan for or to cover.
6. Overspending on a Home. People who buy homes at low interest rates often get a nasty surprise when the rates adjust upward. These raises in costs can lead to disaster.
7. Buying an Overpriced or Unreliable Car. A new car comes with monthly payments that can become unaffordable, leading to problems paying other bills. Also if the vehicle is not reliable and prone to repairs then that is an extra expense that eventually will lead to financial difficulties.
8. Inability to Work Due to a Disability. A disability, from an accident or illness, can lead to a loss of work that is financially disastrous.
9. Co-Signing a Loan. Co-Signing a loan might seem like the right thing to do to help a friend or family member, but it can backfire badly if the co-signer becomes unable to pay the bill.
10. A Wage Hike. Though it seems like a wage hike would always be good news, it can cause problems if it leads to overspending.
Yes, filing Chapter 7 is a scary thought, but for those facing the situation, an experienced attorney can help you to find a solution to your financial problems.