Prior to coming to the realization that their debts are overwhelmingly out of control, the majority of Ohio bankruptcy filers usually have stopped making payments over a fair amount of time already.  If you’re still in the early stages of nonpayment such that you have just started to get the menacing letters and threatening phone calls, you should be aware of what is likely to follow, depending on the type of creditor you’re dealing with.  

For instance, if you are behind on your rent, there is no doubt that you will eventually be evicted.  Accordingly, you should make this debt your highest priority because an eviction can harm your credit for years and make it very difficult for you to be able to rent from another landlord in the future.  Additionally with respect to housing, if you owe any utility companies money and do not pay them, they will disconnect your service and it cannot be reinstated until the unpaid balance has been paid.

Also, if you have a vehicle on which you’re supposed to make payments and you miss more than one, most lenders will not hesitate to repossess that vehicle.  You should note that even after the vehicle is repossessed, you will still be responsible for the balance owed; and once it is resold at auction, you will be liable for any remaining balance (which is known as a deficiency balance).

In the case of unsecured debt, any knowledgeable Ohio bankruptcy attorney will tell you that if you owe a substantial amount of money to an unsecured debt holder, that holder may find it worthwhile to sue you for the balance.  If a judgment is made against you, that creditor will then have the authority to garnish up to 25% of your wages (if you’re working), seize any funds that are in your bank account, or place a lien on any real estate that you own.

If any of these situations apply to you, you may want to consider filing bankruptcy. Please call us today to discuss your personal situation with an experienced Ohio bankruptcy professional.