For many individuals in Ohio and elsewhere, the process of struggling through extended periods of monetary troubles is stressful enough on its own. However, while a person may be unable to keep up with financial obligations, this might not stop a debt collector from sending letters and calling multiple times a day. While creditors may have a right to perform certain actions in the pursuit of payment, there is a line that cannot be crossed, and individuals who experience creditor harassment might be uncertain how to protect themselves against it.
According to a recent survey, around one out of every four individuals who have dealt with a debt collector in recent years has felt threatened by the encounter. While there are regulations in place that prevent collectors from taking certain actions, studies suggest that some fail to follow the rules. Creditor harassment is a serious issue, and according to these studies, it is a common occurrence.
These regulations also state that a debt collector may only attempt to contact a person by phone a certain number of times per day and only between specific hours. Debt collectors are also obligated to cease communication once an official request is submitted, but nearly 75 percent of those surveyed say this did little to stop a collector from calling. Individuals who experience such treatment may wish to protect themselves, but they might be uncertain how best to approach the situation.
When subjected to harassment by a debt collector, a person could find it beneficial to gain an understanding of his or her legal rights. Since this might not be common knowledge, one could consult with a bankruptcy attorney for guidance on how to protect against unlawful treatment. An attorney in Ohio can work toward protecting a client's legal rights and provide guidance on the available options with which to pursue relief from debts.
When it comes to dealing with debts, many individuals in Ohio may have varying methods as to how they approach the situation. However, their goals might remain the same, and reducing or eliminating debts may be the desired result for everyone who experiences similar concerns. In their attempts to achieve financial stability, individuals might find it beneficial to speak with a bankruptcy attorney for guidance on what steps may be necessary, and how to avoid potentially devastating mistakes along the way.
Upon deciding to tackle financial issues, a person may feel it best to pour all available income into paying off debts. In some cases, one might choose to form a stricter budget and free up income to assist in the process. However, a similar decision might not always be the best course of action, as it can stretch one's finances thin, and a sudden and unexpected expense could result in a more challenging financial situation.
As balances on accounts drop, the available credit may inherently increase, and a person may be tempted to add additional purchases. However, this might not be advisable, and it could cause one to experience a seemingly never-ending loop of financial hardships. Such issues may only grow worse with time, and they could cause a person to experience a lesser quality of life for extended periods.
While pursuing relief from debts is a goal that many may share, it can also be a stressful and daunting process. Individuals in Ohio who experience substantial financial concerns could speak with a bankruptcy attorney for guidance in navigating the process. An attorney can examine the client's situation and provide assistance in choosing a path with which to pursue relief and focus on making a return to financial stability.
For many individuals in Ohio and across the nation, debt may seem like a part of everyday life. A person may turn to lines of credit for assistance in a variety of scenarios, and the subsequent addition of debt might not always prove harmful to his or her overall financial standings. However, for individuals who wish to protect this aspect of life, it may be helpful to know how to tell if debts have become a serious issue, and when it could be advisable to speak to a bankruptcy attorney for guidance in pursuing relief.
For individuals who are constantly unable to keep up with monthly monetary obligations, the need to seek relief from debts may be apparent. However, there might be many individuals who are able to make minimum payments on debts who could still be suffering a lesser quality of life in the process. In addition, being unable to pay more than is required can also prove detrimental, and as interest rates cause balances to rise, one's financial hardships may only continue to grow.
When addressing similar issues, a person may find it advisable to keep watch over his or her debt-to-income ratio. Should debts exceed a certain level of one's income, a person could consider forming a budget and cutting down on unnecessary expenses. However, should one be unable to overcome financial challenges using similar methods, seeking guidance on the available outlets for relief may be advisable.
Individuals who experience significant financial hardships may wish to pursue relief, but with numerous options to consider, they might be uncertain where to turn for guidance. By speaking with a bankruptcy attorney, a person in Ohio could gain a better understanding of the options available. An attorney can evaluate a client's circumstances and help him or her work toward reducing or eliminating debts and pursuing financial stability.
Due to the sudden nature of a medical emergency, planning and saving for a trip to the hospital can be a difficult task. With the extensive nature of the cost of treatment, many individuals in Ohio may view the idea of receiving a hospital bill with more apprehension than the thought of suffering an illness. Medical bills continue to be one of the leading causes of debt across the country, and those who experience such challenges may wish to seek guidance on the available outlets of relief, such as bankruptcy.
The costs of medical care continue to increase at an alarming rate, and even those who are forced to visit the hospital for a simple procedure could be left facing a significant financial hurdle. Without the necessary savings to cover the costs of treatment, one trip to the hospital could have a devastating impact on one's finances. While studies suggest that a person may be able to avoid such an occurrence by building a financial safety net, some may lack the means to achieve this goal.
Even for individuals who carry health insurance, receiving a bill for treatment can be a daunting experience. Insurance plans may not always cover the full cost of treatment, and even a small percentage of the bill could prove financially overwhelming. When an unavoidable emergency poses a threat to one's financial stability, he or she could find it advisable to seek guidance on how to seek relief.
Individuals who suffer through prolonged periods of financial struggle due to medical debt could benefit from seeking guidance from someone with experience in the area. By consulting with a bankruptcy attorney, a person could obtain advice on the available options for relief. An attorney in Ohio can evaluate a client's situation and provide assistance in pursuing relief from debts through the necessary outlets.
The United States did away with debtors' prisons a long time ago. So the short answer to your question is, no, you will not go to prison if you fail to pay your credit card bill.
That said, some not-so-nice things will happen to you and your financial situation if you fail to pay your bills. Let's take a closer look at these consequences.
What happens if you don't pay your credit card bills?
Although debtor's prisons don't exist in our country anymore, credit card companies — and the debt collection agencies to which they sell your debt — can file lawsuits to collect the money that you owe them.
If the plaintiffs win a judgment against you in court, they can even garnish your wages. If that occurs, your employer will be required by law to deduct a percentage of your wages, which will be redirected to your creditor in order to pay off your debt. In some cases, creditors can get court orders to freeze bank accounts and even seize property or other assets as compensation for your debt.
Credit card debt is the first to go during bankruptcy
Credit card companies take on a large amount of risk when they lend money to consumers. That's one reason why they charge high interest rates. Because of this, credit card debt — which is unsecured debt — is the least respected category of debt in bankruptcy proceedings. What this means is that if you file for bankruptcy, the bankruptcy court will usually wipe out your credit card debt first.
Also, after filing for bankruptcy, you will receive protection from an "automatic stay." This means that the credit card company or debt collection agencies will have to halt all wage garnishment actions and quit harassing you with phone calls, etc., to try to collect the debt.
Are you interested in the bankruptcy process?
If you're struggling under a mountain of credit card bills that you don't know how to pay off, you might want to learn about bankruptcy. If you qualify for this debt relief process, soon you can get your financial situation under control.
Although there are a multitude of circumstances in which an individual in Ohio could begin to experience monetary hardships, some tend to be more common than others. Recent studies suggest that individuals across the nation carry as much as $527 billion in total in credit card debts, and with interest rates continually on the rise, these numbers are likely to increase. Those who wish to pursue relief from similar financial difficulties could find it helpful to speak with a bankruptcy attorney for guidance on how to achieve their financial goals.
Although a credit card can provide financial assistance under a variety of circumstances, using similar lines of credit may come with a cost. With high interest rates, individuals who carry revolving balances on unsecured accounts can suffer in a variety of ways. A person could attempt to cut down on expenses and make larger payments to these accounts, but such an endeavor can prove challenging, especially for those who are experiencing additional monetary challenges.
One could also choose to focus more on accounts with higher interest rates and attempt to negotiate a reduction on the rate charged. Once these accounts are paid in full, the additional income that is freed up in the process could help with other financial obligations. Coming up with a long-term strategy for addressing these concerns can prove beneficial, but it can also be a stressful and daunting task.
For individuals in Ohio who wish to pursue relief from similar debts, seeking guidance early on could prove advisable. By consulting with a bankruptcy attorney, a person could obtain advice on all the options available, as well as their potential outcomes. An attorney can provide a client with guidance on how to reduce or eliminate these debts and pursue a brighter financial future.
Many individuals in Ohio and elsewhere might approach the prospect of buying a home with nothing but excitement. However, this decision may also bring about financial responsibilities that could prove troublesome should one fall behind on payments. Facing a foreclosure can be an intimidating process, but it may also take time to complete, and a person might be able to take certain actions to delay or prevent it from occurring.
Upon taking out a mortgage, an individual must sign a contract agreeing to pay back the amount borrowed over a given period. While a person may be fully capable of making the necessary payments at the time, unforeseen circumstances such as a loss of employment or medical emergency could complicate matters. Should this person fall behind on mortgage payments, the lender may seek to recover its losses through foreclosure.
Once a lender initiates the foreclosure process, one may seek to prevent it by getting up-to-date on payments. However, if a person is unable to do so, he or she should speak with the lender as soon as possible. Those who are able to make a lesser payment could be eligible for a loan modification, while others who face short-term financial hardships may wish to seek a forbearance.
For a person in Ohio, the potential of losing a home can be a daunting experience. Those who face similar concerns could benefit from speaking with a bankruptcy attorney for advice on the options available. An attorney can evaluate the situation and advise a client in coming up with a strategy to stop foreclosure and retain possession of his or her home.
With the high interest rates on most credit cards, many individuals in Ohio have experienced the strain of financial struggles. Recent reports indicate that the average household pays amounts in excess of $900 a year in interest alone on revolving credit card balances. Those who struggle with substantial monetary concerns might find it helpful to know how to go about cutting down on debts, and when it could be time to seek further assistance through outlets such as bankruptcy.
As credit card bills and collection statements continue to arrive, one may feel somewhat intimidated by the thought of dealing with debt. However, ignoring these issues will do little to solve them, and studies suggest that the first step to cutting down on debt is to gain an understanding of how much is owed. By confronting financial issues, a person might be able to begin to form a strategy for how to handle debts and pursue a healthier financial future.
When forming a plan to repay debts, an individual may find it advisable to focus on those with higher interests rates and reduce balances as he or she is able. Simply forming a plan is only the beginning, and perseverance could prove vital to obtaining one's financial goals. However, should one's efforts to cut down on debt prove unsuccessful, he or she might find it advisable to seek guidance on the available options for relief.
Cutting down or eliminating substantial amounts of debt can be a complex process. Those who experience challenges of this nature could retain the services of a bankruptcy attorney for advice in making informed decisions. An attorney can assist a client in Ohio in forming a plan to pursue relief and provide advice on how to avoid similar concerns in the future.
If you stop making your car payments, your vehicle will eventually get repossessed. This will involve a repossession agent employed by your lender coming to your home, hooking your car up to a tow truck and taking it away.
It is your lender's legal right to repossess your vehicle if your loan goes into default, but knowing this certainly doesn't make the experience any easier. You will lose your mode of transportation and whatever value you own in the car, and you will also incur other stiff penalties and fines -- not to mention the effect of a vehicle repossession on your credit report.
How will a repossession affect my credit rating?
Repossession will certainly have a negative effect on your credit rating in several ways. First, the repossession itself will hurt your credit score. Second, the repossession will show up on the public record area of your credit report. Third, if your lender succeeds in securing a deficiency judgment regarding the amount of money you still owe, this judgment will also show up on your credit report.
These negative events will follow you on your credit report for the next seven years. However, as more time passes, the negative impacts will become weaker and weaker.
What about avoiding vehicle repossession?
There are some ways to avoid repossession. Perhaps the most direct way is to simply catch back up on the payments you owe, which you might be able to do with some strict financial planning or with the help and assistance of a family member or friend. Another way to avoid repossession is to refinance.
With a newly refinanced loan, you might be able to afford your monthly loan payment obligation by spreading out your repayment period over a longer time and by lowering the interest rates that apply to your account. It's always best to apply for a refinance loan as soon as possible, and before you start running the risk of missing a debt payment.
Another potential solution is bankruptcy. By filing for bankruptcy, a vehicle owner may be able to put the collection efforts of his or her lender on hold to prevent or delay the vehicle repossession process.
For many small business owners in Ohio and elsewhere, financial difficulties can prove to be a source of stress. Smaller businesses may depend more heavily on a steady flow of income, and should a company experience similar issues, the need to seek guidance could be dire. Should these concerns persist for extended periods, the future of the company could be placed in limbo, potentially leaving a small business owner in search of options for relief.
The ups and downs of profit can have an impact on any business, regardless of whether a company is part of a chain or a privately owned operation. However, without the financial backing of a larger entity, the effects of periods of lesser profit can weigh heavily on a small business. This could lead some owners to take out loans to assist in keeping the company operational, which could only prove to be a temporary solution and lead to further troubles in the future.
Small business owners may also have less protection against taking risks, such as expanding operations. While these ventures may have the potential of bringing in additional income, if things don't go as planned, the cost of taking such a risk could prove higher than expected. When facing monetary troubles, having a plan to break free of debt may be essential, but a business owner might need assistance in the process.
When financial struggles pose a threat to the health of a company, a small business owner might find it advisable to seek guidance before deciding on a path. By speaking with a bankruptcy attorney, an owner could gain advice in making informed decisions regarding the future of his or her enterprise. An attorney can examine the situation a client in Ohio is facing and assist him or her in pursuing relief from the burdens of debt.