Top 5 reasons people in Ohio file for Chapter 13 Bankruptcy?
Residents of Ohio are often suffering from economic problems. In this state, many residents feel the pinch when the economy does not do well. In fact, bankruptcy is prevalent here for people of all ages and backgrounds. Here are the five main reasons people in Ohio file for Chapter 13 bankruptcy.
1. Uninsured Medical Debt: Sadly, in the United States, if you have a medical condition and do not have insurance, you can be responsible for thousands of dollars of medical bills. This can lead to a crushing amount of debt with little to no opportunity to pay it off. Uninsured medical debt is one of the most common reasons for, people in Ohio file for bankruptcy protection and discharge.
2. Job loss: Without a job, it’s not easy for a person to pay for their expenses. While it’s okay in the short-term, this economic downturn has caused many to file for bankruptcy as they simply cannot pay their monthly expenses due to the loss of their employment.
3. Car accident: Think about it, when a person is in a major automobile accident, they are out of money in a few ways. For starters, the individual will usually need to head to a local hospital. Furthermore, after a car accident, one will have a rather hefty repair bill. All this leads to financial problems when a person has to miss work and fix his or her car.
4. Failed business: In the United States, starting a business can still lead to success. In fact, plenty of people in Ohio have started businesses and made lots of money. However, business has risks, and many have found themselves facing overwhelming debt when their business did not succeed. For this reason, bankruptcy is often a feasible option to obtain a fresh start after a failed business closes.
5. Divorce or separation: The termination of a marriage through divorce or dissolution often leads people to file for bankruptcy. Often, family units base their monthly living expenses on two incomes and when a marriage ends the former spouses are faced with all of the same debt and only one income. This reduction of income leads to financial hardship and the inability to meet all of the family’s monthly obligations. When the finances start to fall apart following a divorce, many have little other choice but to resort to filing bankruptcy to obtain the fresh start they need to move forward in their life.