Ohioans continue to face financial struggles. If you are struggling with your finances you are not alone. The United States Courts reports that there were 36,957 filings for relief through bankruptcy in Ohio during 2016.
Those who find themselves struggling with their finances and considering relief through a bankruptcy petition can benefit from the following considerations:
- There's more than one type of bankruptcy. There are a number of different forms of bankruptcy available. They are referred to as chapters, and the most common used by individuals are Chapter 7 and Chapter 13. A Chapter 7 bankruptcy petition can lead to the discharge of debt, meaning you are no longer responsible for qualifying financial obligations. A Chapter 13 results in a payment plan that is designed to provide a more manageable way to pay off creditors.
- Bankruptcy stops creditor attempts to seek payment. If your petition for relief through bankruptcy is approved, an automatic stay goes into effect. This court order requires all creditors cease from attempting to enforce payment. They cannot call, they cannot write, they cannot take any actions to take your money.
- Bankruptcy can help your future financial security. It may seem counter to popular belief, but in some situations moving forward with a bankruptcy proceeding can actually help better ensure your future financial security. After approved, you can begin to take steps to proactively improve your credit score.
Although these three considerations offer a great starting point for those determining whether or not bankruptcy is the right option, they are only a starting point. A number of other considerations should be reviewed before deciding to move forward with bankruptcy and then to determine which chapter is best.
As such, it is wise for those considering relief through bankruptcy to seek the counsel of an experienced attorney. Your lawyer can review your financial situations and help guide you through the process, better ensuring a more favorable outcome.