It is very common for consumers to fall into hard time. Unfortunately, the economy of the United States has not been in a good state for many years. While consumer prices have continued to soar, working wages have remained stagnant. This will force many consumers to take drastic measures to keep themselves out of trouble. Filing bankruptcy in Ohio might seem like a major defeat, but it can actually come with some benefits, such as being giving the opportunity to start all over. Within this guide, you will learn more about bankruptcy within the state of Ohio.
Surprisingly, there are numerous benefits associated with filing for bankruptcy. This is why many businesses will take such a measure when they’re unable to pay off their debts. First and foremost, it is possible to have eligible debts discharged after you have filed for bankruptcy. You will also receive protection from creditors and debt collectors. And finally, you will be able remain in possession of exemption properties. Therefore, it is possible to wipe the slate clean and start anew by submitting your bankruptcy paperwork.
What Won’t Happen
While bankruptcy can be beneficial, it is not a comprehensive solution. In fact, some creditors will still be able to collect their debts. Secured creditors such as house mortgages and car loans will still remain in effect. While these entities will still come for their money, you may be able to negotiate with them to setup a long-term payment plan. Other debts, such as child support and alimony, will also stand. And finally, you should know that your cosigners will not be protected by your bankruptcy. These individuals will still be responsible for paying a portion of the loan or pay it off completely.
It is also important to remember that you cannot file for bankruptcy as often as you please. There are certain limitations to prevent consumers and businesses from taking advantage of the bankruptcy laws. If you intend to find Chapter 7, you will only be able to do every eight years. Chapter 13 bankruptcy can be filed every six years.
Finally, you should know that there are different types of bankruptcy. They include Chapter 7, 11, 12 and 13. Each is different and only a select few will be available to average citizens. Since there are some complexities associated with bankruptcy, it is generally best to work alongside a bankruptcy lawyer. They’ll be able to assist you and make sure you make the right legal maneuvers.