Sometimes debts become so high that an Ohio person, despite great efforts, may never be able to pay them down barring winning the lottery. In such instance, one of the few ways certain to gain freedom from such a life-defeating burden is bankruptcy.
As an Ohio resident, filing Chapter 7 bankruptcy may offer you an opportunity to get a financial fresh start if you are in the unfortunate position of not being able to pay your bills. It can even forestall foreclosure of your home. Be aware, however, that a Chapter 7 bankruptcy does not cancel your mortgage. What it does is temporarily stop the foreclosure and give you the chance to catch up on your missed payments.
Most in Cleveland likely view bankruptcy as a choice made by those looking to avoid further action being taken against them by their creditors. Yet in some cases, it may be the other way around. A person or company’s creditors may find it to be in their best interest to force a debtor into bankruptcy in order to recover a portion of their claims. While many view such a move as being drastic, some parties may view it as the only way to avoid losses associated with a liability claim.
Debt struggles can strike almost anyone in Cleveland. If and when they affect you and your family to the point of having to consider a Chapter 7 bankruptcy, you will likely ask yourself the same question that many have brought to us here at Rauser and Associates Legal Clinic LLP: Can I keep my home? The answer to that question depends on a few different factors, yet there is hope that you will not have to lose what is likely your most valuable asset.
As a resident in Ohio who is currently struggling with debt, you are likely looking over your possible bankruptcy options. There are two primary options available: Chapter 13 and Chapter 7. Depending on your unique situation, one will likely benefit you more than the other.
If you have asked yourself this question, you are in good company. Thousands of college students graduate from college every year, and a majority of them leaves school saddled with a significant amount of loan debt. It can be difficult to get a job right away, and, consequently, it can be difficult to pay a loan with no money.
It is common knowledge that filing for Chapter 7 bankruptcy makes your debts go away. But it is not that simple. All your debt is not discharged once you have successfully filed for bankruptcy. There are several debts that remain that you have to pay regardless of declaring bankruptcy.
Filing for Chapter 7 bankruptcy is a complicated process, and you should be aware of certain details before making such an important decision. Although it does relieve you of some of your debts, others might not be that easy to get rid of. Certain debts are important to pay off, and the court does not allow you to have them waived.
Filing for Chapter 7 bankruptcy is considered a suitable option for persons burdened by enormous debts. In this type of bankruptcy, individuals can discharge unsecured debts that have been plaguing them for long. This includes debts arising from medical bills, personal loans and credit cards. Fortunately, personal assets such cars, homes and private belongings are exempted from the debt payment process. Before filing for the bankruptcy process, you must provide honest answers to expedite the review and receipt process.
Ohio residents who are unsure if they will qualify to file for Chapter 7 bankruptcy can use a test to figure it out. The means test fulfills this purpose. You may be wondering what exactly a means test is, how it can help you and how you can access it. This week's column will answer those and other questions.