10 Debt Questions You’re Afraid to Ask

Debt is overwhelming for many Ohioans. If you’re facing financial difficulties, it’s natural to have questions, but sometimes those questions feel too intimidating to ask.

Fortunately, as an Ohio consumer protection law firm, Luftman, Heck & Associates wants to answer and clarify all your questions about debt collection and help find a viable plan for relief. Since 2003, we’ve been helping people across Ohio to free themselves from overwhelming debt, answer their questions, and provide guidance to consumer law.

Common Debt Questions & Answers 

Here, we will dive into some of the most common questions about debt and provide some actions one can take to get their debt under control.

What Should I Do If I Can’t Pay My Debts? 

If you cannot pay your debts, the first step is to assess your financial situation. Create a budget to understand your income and expenses. Contact your creditors to discuss your situation; they may offer payment plans or temporary relief.

Consulting with a consumer law attorney can also provide legal advice tailored to your circumstances. For instance, they may be able to help you take action against debt collectors who’ve violated your rights or are trying to collect on something you don’t owe

Can Creditors Garnish My Wages?

Creditors can garnish your wages in Ohio, but they must first obtain a court judgment against you. Ohio law limits the amount that can be garnished to either 25% of your disposable earnings or the amount by which your weekly earnings exceed 30 times the federal minimum wage, whichever is less. Certain debts, like child support or taxes, may have different rules.

Is There a Time Limit for Collecting a Debt? 

In Ohio, the statute of limitations for most types of debt is six years from the date of the last payment or activity on the account. Once this period passes, a creditor can no longer sue you to collect the debt. However, this doesn’t mean the debt disappears, and collectors may still attempt to seek payment.

Can I Take Legal Action if Debt Collectors Are Harassing Me? 

Ohioans are protected by both the federal Fair Debt Collection Practices Act (FDCPA) and Ohio’s Consumer Sales Practices Act (CSPA). These laws prohibit debt collectors from using abusive, deceptive, or unfair practices. Some of the ways that a debt collector can harass you are:

• Repetitious phone calls or electronic communications intended to harass, oppress, or abuse you or any person
• Use obscene or profane language
• Threaten violence or harm
• Publish lists of people who refuse to pay their debts

If you feel harassed, document all interactions and consult an attorney to explore your options.

Can I Negotiate My Debt with Creditors?

Negotiating with creditors is possible. And while you can discuss reduced payment plans, lower interest rates, or even a lump-sum settlement for less than the full amount owed, it’s not as easy as it sounds. Negotiating with creditors is a part of debt settlement, and you should have a lawyer to walk you through the process. There are a lot of debt settlement companies out there, so people should be careful. If you pursue debt settlement, have a licensed Ohio lawyer looking out for your interests.

Will Bankruptcy Ruin My Credit?

Bankruptcy will impact your credit score significantly and remain on your credit report for up to ten years. However, it provides a fresh start and can eventually improve your financial situation, Chapter 7 or Chapter 13 bankruptcy can both provide ways to help you create a fresh start. Many individuals find they can rebuild their credit within a few years post-bankruptcy.

Can I Keep My Home and Car if I File for Bankruptcy?

Ohio law allows for certain exemptions that will enable you to keep essential assets. Under Ohio’s homestead exemption, you can protect up to $145,425 of equity in your home. For vehicles, the exemption is up to $4,000 in equity. These exemptions can help you retain your house and car through bankruptcy.

How Does Debt Settlement Differ from Bankruptcy?

Debt settlement involves negotiating with creditors to pay a lump sum less than the total amount owed. On the other hand, bankruptcy is a legal process that can discharge some or all your debts. Debt settlement can avoid bankruptcy’s lasting impact on your credit, but it often requires a significant lump-sum payment.

What Happens If I Ignore a Lawsuit from a Creditor?

Ignoring a lawsuit from a creditor can result in a default judgment against you, allowing the creditor to take steps like wage garnishment, bank levies, or liens on your property. Responding to any legal notices and seeking legal advice immediately to protect your rights and options is crucial.

It may be hard to admit that a creditor is suing you, but a lawyer can help. They might discover that the debt is faulty or that the creditors have violated your rights somehow. By hiring a licensed Ohio consumer lawyer, you can get a thorough assessment of your situation and develop a plan to pay off your debts.

Can Student Loans Be Discharged in Bankruptcy?

Discharging student loans in bankruptcy is challenging. In Ohio, as elsewhere in the U.S., you must prove that repaying the loans would cause undue hardship through a separate legal proceeding. Consulting with a bankruptcy attorney with experience with student loan cases can provide specific guidance.

Worried About Your Debt? Contact LHA Today 

You’re probably worried about your debt, but understanding your rights and options can empower you to take control of your financial future. If you’re facing debt-related issues in Ohio, consulting with a knowledgeable consumer law attorney can provide the support and legal advice you need. Don’t hesitate to reach out and get the help you deserve.

Jeremiah E. Heck is a leading consumer attorney and founding partner of Luftman, Heck & Associates, committed to helping individuals navigate the complexities of challenging debt. If you have more questions or need personalized advice, contact LHA at (614) 215-9961 for a free, no-obligation evaluation.

We take pride in helping Ohioans overcome their debt issues and removing the cloud of financial uncertainty over their life. Let us walk you through your options and answer your questions.