Ohio residents who pass away are likely to do so while still in debt. According to December 2016 data provided by Experian, 73 percent of consumers who died owed money to creditors. On average, an individual died with $61,554 when a mortgage balance was included. Without the mortgage balance, the average individual had $12,875 when he or she passed on.
Let's skip to the end and talk about the Chapter 13 discharge
You might consider filing a Chapter 13 bankruptcy in order to keep your house and the assets you worked hard to accumulate. Someone may have told you that, after three to five years of tightening your belt and making payments to your creditors through the court, you could walk away with all of your assets, including your house, intact. You just have to come up with a repayment plan that meets the court's approval.
Court rejects bankruptcy payment plan funded by parents
When someone in Ohio files for bankruptcy protection, the court will consider many factors before allowing the case to move forward. A dismissed case that involved a convicted felon and income provided by his parents illustrates the scrutiny that a court will apply to a debtor's income.
Collection agencies and credit reports
Debt that is owed to creditors may be sent to a collection agency if attempts by the original creditor to obtain payments have failed. Ohio residents who are concerned about debt that has been referred to a collection agency should know that collection accounts can have a negative impact on their credit scores.
The benefits of swiftly getting rid of debt
With the ease of obtaining credit cards and personal loans these days, people tend to consider debt as commonplace yet have little to nothing in savings. In fact, according to a survey, about a third of the U.S. population have nothing in savings, another third have less than $1,000 in savings and only 4 percent have between $5,000 and $9,999. Besides being able to save money, there are quite a few advantages for Ohio residents who work to rid themselves of their debts immediately, just as there are many disadvantages to carrying large debts.
