Having a General Understanding of the Options in Bankruptcy

Constantly dealing with the burdens of debt can place a significant financial weight on an individual in Ohio. Debt can come in many forms, some of which are sudden, and others perhaps more gradual, all of which could have a substantial impact on one’s quality of life. When facing similar circumstances, a person may wish to pursue relief through bankruptcy, and having a general understanding of the process could prove beneficial.

The first step in the process may be to determine which type of bankruptcy is the correct path to pursue relief. There are two types of consumer bankruptcy, each of which functions in a different manner. In Chapter 7, certain assets may be subject to liquidation, but many of one’s debts may also be discharged in the process. In Chapter 13, one may retain possession of his or her assets while repaying a certain amount of debts over a given period.

When exploring bankruptcy, an individual may also benefit from knowing that the process isn’t free. However, the price of filing may be outweighed by the relief one could obtain. One should also be aware that not all debts are eligible for discharge in bankruptcy, and seeking advice on how the process will affect one’s assets and debts before proceeding is advisable.

Individuals who suffer on account of overwhelming amounts of debt may wish to pursue relief, but they might be uncertain how to achieve this goal. By speaking with a bankruptcy attorney, a client in Ohio could obtain advice on every available option. An attorney can address a client’s financial situation and provide advice on choosing the correct path to pursue relief from debts, as well as assistance in navigating the process.

Source: Forbes, “Filing For Bankruptcy: 3 Most Important Things You Need To Know“, Larry Myler, Oct. 3, 2017