Filing for Chapter 7 can provide much-needed financial relief to a debtor. As people continue to be laid off or face greater expenses in these economic times, filing for Chapter 7 Bankruptcy as become a more socially-acceptable mechanism to handle financial difficulties. Filing for Chapter 7 bankruptcy can provide a debtor with a “fresh start” and empower the debtor to regain control of his or her finances. Here are the top five reasons people file for Chapter 7 Bankruptcy in Ohio.
Those who have little to no health insurance often face catastrophic expenses after just one or two visits to the emergency room. A single surgery can leave a person over $30,000 in debt. Most individuals do not have access to extra cash to instantly pay off medical expenses. If they do have funds, these funds may be placed in retirement accounts or educational savings accounts. Instead of depleting the funds in these accounts to pay for medical expenses, it can be preferable to file for Chapter 7 Bankruptcy. If medical expenses become consuming, a person may find that Chapter 7 Bankruptcy provides the financial relief that he or she needs. Chapter 7 Bankruptcy will eliminate any outstanding medical expenses that a person has.
After the loss of a job, a person can face the stress of paying for rent, making car payments and attempting to meet other monthly expenses. He or she may get into a downward spiral if he or she is unable to find a new job in a timely manner. The after-effects of job loss, such as a loss of insurance, can also contribute to insurmountable expenses that a person faces after a job loss.
A spendthrift may easily get into trouble when he or she uses credit cards without any personal limits. Credit card debt can accumulate and become nearly impossible to overcome when those credit cards have high interest rates.
After the payment of child support, alimony and division of the assets, a former spouse may find that he or she can no longer meet his or her personal expenses.
Unexpected expenses, such as the loss of property, can also cause a person to feel the need to file for Chapter 7 Bankruptcy. Unexpected expenses may also arise after natural disasters, such as floods or earthquakes.
These are common reasons that people file for Chapter 7 Bankruptcy in Ohio. Individuals who are thinking about filing for Chapter 7 bankruptcy may want to discuss their legal options with a lawyer who specializes in debtor laws.