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Cuyahoga Falls Bankruptcy Law Blog

Chapter 7 broken down into simple steps

There is a lot of stigma around being pinned under debt. The reality, though, is that most people don’t accrue their financial deficits through sheer carelessness – many wind up in the red after surprise medical bills, emergency spending or sudden loss of income.

When debt seems insurmountable, remember that the tool of bankruptcy is always an option. Chapter 7 bankruptcy specifically will wipe all a person’s “unsecured debts” clean. That is, anything they owe that is not backed up by collateral. This includes things like medical debt and credit card balances.

Will I ever be able to buy a home after bankruptcy?

If you are like many of the people in Ohio who are struggling with unmanageable levels of debt, you might have considered filing for bankruptcy at least once. Seeking debt relief via a bankruptcy, whether a Chapter 7 or a Chapter 13 plan, is a big step that does require thorough investigation. This investigation can help you identify if bankruptcy is right for you and which type of plan might be best for you. It can also help you to feel more confident about your financial future after a bankruptcy.

Contrary to what some consumers might think, it can be very possible for you to buy a home again even if you have previously filed for bankruptcy. As explained by SmartAsset, one of the biggest factors a potential lender will look at is how you have handled your financial affairs since your bankruptcy. For this reason, it is important for you to focus on rebuilding your credit and even amassing a nice savings nest egg.

What are some bankruptcy myths?

When it comes to filing bankruptcy in Ohio, there are many myths. If you believe them, it could be harmful to you in the long run. Some myths vilify bankruptcy and could make you avoid filing when it really is the right option for your situation. Others can just confuse you and lead to mistakes when you do file. Knowing fact from fiction can enable you to make better choices when it comes to bankruptcy.

NerdWallet explains one serious myth is that it is better to pay off your debts than file bankruptcy. The truth is filing is not a bad decision. In some cases, it is the best decision. The hit your credit takes is minor due to what would happen if you tried to pay off debt you really cannot afford to pay. The general guide is that if you cannot pay off your debts within the next five years, then bankruptcy is probably the best choice.

How the bankruptcy means test determines Chapter 7 eligibility

As an Ohio resident who is looking to regain control over your finances, you may be wondering whether filing for bankruptcy may help give you the fresh start you desperately need. You may, too, be familiar with the various types of personal bankruptcies, including Chapter 7 and Chapter 13 filings, but you may not fully understand how they differ or which type might better suit your needs. At Debra Booher & Associates, we have a comprehensive understanding of the various consumer bankruptcy processes, and we have helped many clients facing similar circumstances find solutions that meet their needs.

According to Nerdwallet, you may not be eligible for both types of consumer bankruptcies. Generally, Chapter 7 bankruptcies typically help those with lower income levels get back on their feet financially, while those with higher income levels may have to pursue Chapter 13 filings. Ultimately, whether you will be able to move forward with a Chapter 7 bankruptcy, if preferable, depends on whether you are able to pass the bankruptcy means test.

What are the exemptions allowed under Ohio law?

When a person files bankruptcy in Ohio, the court may take his or her assets to pay off debts. However, the idea behind bankruptcy is to give a person a fresh start, so there are some assets the court may not take so the person still has items to rebuild with after the bankruptcy. The court refers to these as exemptions.

According to the Ohio Revised Code, there are many exemptions applies to a bankruptcy case. Generally, a person has a specific dollar amount for each type of asset. If he or she owns something that goes over the dollar amount limit, then that asset is not exempt. The dollar value increases based on cost of living increases every three years.

Bankruptcy and cryptocurrency investments

When it comes to filing a bankruptcy petition, we have looked into many different legal issues affecting those who are facing financial challenges. With the emergence of new financial considerations due to technology, such as cryptocurrency investments, there are even more matters that you may need to consider before or during your bankruptcy. For example, your cryptocurrency investments may have resulted in your financial hardships after unfortunate developments, and this is certainly not uncommon due to the very nature of cryptocurrency markets. Moreover, you may wonder how filing for bankruptcy could affect your current cryptocurrency holdings.

As with all bankruptcy topics, it is pivotal to have a clear understanding of any financial matters that could affect your case. If you are struggling with massive debt after losing a significant amount of money due to cryptocurrency investments, you could be able to free yourself from this financial nightmare by moving forward with a bankruptcy. However, you may very well lose these investments if you decide to file for bankruptcy. Moreover, some people may try to hide their cryptocurrency investments when they move ahead with a bankruptcy petition, and this can lead to additional penalties and challenges later on.

How to balance bankruptcy with divorce

For many couples in Ohio, financial challenges can create or add to marital strife. Problems with money can even at times contribute to an irreconcilable breakdown of a marriage. If you and your spouse are in this situation where you have decided to get divorced but still need to figure out how to deal with your debt, you may even be considering bankruptcy. Before you rush into filing for bankruptcy or divorce, however, it is important to assess the timing of each of these things.

As explained by My Horizon Today, the type of bankruptcy plan that might be right for you may depend in part on the nature of your relationship with your spouse. Even if you have chosen to end your marriage, the two of you may be able to work collaboratively together on a bankruptcy. If, however, this is not possible, your options for bankruptcy may change.

Simplifying the Chapter 7 process

For many people, the idea of filing for bankruptcy may seem intimidating for various reasons. From experiencing stress in the courtroom to worries about being judged by others and uncertainty about how a bankruptcy filing will affect one's future, there are many different concerns that some people have. However, you may be able to take a number of steps to not only alleviate these concerns but simplify the bankruptcy process as well, which varies depending on the type of bankruptcy that you move forward with. Chapter 7 has a variety of advantages and you may be able to get rid of debts that have been dragging you down by moving forward with this option.

First of all, bankruptcy can be significantly easier when you are prepared and have a good understanding of how you will approach your case. Familiarize yourself with the ins and outs of the Chapter 7 process so that you have a good idea of what you can expect. Moreover, approaching a Chapter 7 bankruptcy properly can help you avoid costly, stressful and time-consuming errors. In addition to having a solid understanding of the Chapter 7 basics, you may benefit from consulting a legal professional who has handled many of these cases.

The Necessary Steps To Take Before Filing For Bankruptcy

The debts have piled up. The creditors are calling, and you're wondering where you'll get the money to pay for your child's school activities. You're in a desperate situation, and now you need a plan of action to stave off bankruptcy. However, sometimes, bankruptcy may be the best or only solution.

You must be realistic when considering filing for bankruptcy, but there are steps that you can take in preparation for the move. Admittedly, it won't be easy. Your pride may be hurt, but you are taking the first steps toward a potential resolution.

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