Bankruptcy filing have been on the decline for the past several years, with the decline being attributed to less medical debt thanks to the Affordable Health Care Act and an increase in the difficulty of getting a Chapter 7 bankruptcy case approved by the courts courtesy of the 2005 means test addition to bankruptcy filings. No one, apparently told that to northwest Ohio, whose bankruptcy cases increase in July 2017, which represents the third straight month of bankruptcy increases. In 2017, bankruptcy numbers in Ohio have increased four out of seven months, and while Chapter 7 liquidation cases have decreased slightly, it’s Chapter 13 repayment bankruptcy cases that have risen so sharply.
So why have Chapter 13 bankruptcy cases in northwestern Ohio increased so dramatically? The amount of bankruptcies tends to follow debt, and when debt rises, bankruptcy cases typically follow. While the economy has improved drastically since the 2007 time frame, individuals are still falling victim to subprime credit cards that are issued to nearly anyone with a pulse, but who don’t have ability to pay anything more than the monthly minimum payment. Additionally, while Obama care has improved the medical debt situation, it still continues to be a problem for many people who are unexpectedly injured or hospitalized and don’t have savings to cover their deductible. Last on the list of likely suspects for the increase in bankruptcy cases in Ohio are automobile loans. Many individuals rely on a car or truck to provide transportation to their jobs, but don’t always get the best deals on auto loans, which have weaker requirements than say mortgages do.
If you are experience debt that you can’t pay, don’t wait until the situation gets worse: contact your local bankruptcy attorney to find out your options. Not everyone who meets with a local bankruptcy attorney in Dayton OH ends up filing, but it can get you the answers you need on the best way to relieve your debt issues.