 With the struggling economy, many people are finding themselves deep in credit card debt. Therefore, consumers are forced to turn to debt consolidation in order to get control of their finances. However, before a person decides to consolidate their credit card debt, they need to be aware of the credit... |
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Living with debt is by no means easy. There’s the constant concern of living paycheck to paycheck and the never ending issue of covering monthly bills and living expenses. While most of us pride ourselves on being self-sufficient, it’s hard to ignore that we all sometimes live well beyond our means.... |
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Consumers overwhelmed by credit card debt and foreclosures in Ohio can thank Congress for changing the bankruptcy laws in 2005 and making their financial lives a lot more difficult. For those of you under a rock for the past few years, in response to rising personal bankruptcy figures, Congress passed the Bankruptcy Abuse Prevention & Consumer Protection Act (BAPCPA), which was quickly signed into law by President Bush. Essentially the new bankruptcy law meant that the process for filing would be a lot more difficult, the court fees a lot higher, and the potential outcome a lot less appealing. This was accomplished in several ways: a) people declaring bankruptcy are now required to have a mandatory credit counseling session so they can determine with a debt expert whether their problem can be better remedied through budgeting or a debt management plan; b) court fees were increased to $245, plus a $39 miscellaneous fee, and a $15 surcharge for the trustees; and c) most importantly, debtors who earn more than the median income in their state may be required to file chapter 13 bankruptcy instead of the preferred Chapter 7. Detailed below is the median income information for Ohio as of 2006. 2-person families: 48,332 3-person families: 58,130 4-person families: 68,579 5-person families: 69,433 6-person families: 65,214 7-or-more-person families: 58,796 Why Chapter 13 Is So Dreaded Chapter 13 bankruptcy in itself is essentially disadvantageous for the debtor, assuming you owed personal debt from credit cards, medical bills, and repossessions, because the consumer pays the debt and still suffers the severe credit effects of a bankruptcy. In a Chapter 13, the debtor is required to turn over their monthly disposable income to the courts for a period of three to five years. The difficulty in doing this for up to 60 consecutive months cannot be understated, and due to this fact, a majority of Chapter 13s fail. Due to the aforementioned cons of bankruptcy, more Ohio consumers are seeking credit card debt relief options instead. To learn about these debt programs, submit a form and PayingPaul.Com will match you with a credit company for a free consultation! 2004: 88,416 2005: 133,541 2006: 34,466 Ohio bankruptcy cases fell by 99,075 between 2005 and 2006, which amounts to a 74.1% drop in personal filings. Although unemployment rates did decrease during this time period, the major reason behind the significant cut back in the number of people seeking debt relief through Chapter 7 or 13 lies in the dramatic overhaul to the bankruptcy system that occurred in 2005. Thanks Congress filing bankruptcy is now a much more difficult to qualify for, specifically Chapter 7. Fortunately, however, there are now an increasing number of legitimate providers of debt assistance options for Ohio consumers with credit card problems. Ohio Consumer Credit Counseling Services Ohio Bankruptcy Laws Ohio Debt Collection |
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