When Ohio residents are considering getting a handle on their debt, they may wonder which management option may be right for them. They may want to consider consolidation or settlements rather than bankruptcy because the word "bankruptcy" often appears to have a negative connotation. However, Chapter 7 bankruptcy may be an option that some parties could find substantially beneficial when working to get their financial situations back on track.
Consolidating debt into one payment may be a feasible option for some. However, the amounts that are owed after consolidation can still be overwhelming and take years to pay off. As a result, individuals may end up losing more money over the course of time it takes to pay off the consolidation balance, especially if it is considered what that money could have gone toward, such as retirement funds that could have accrued beneficial interest.
Chapter 7 bankruptcy, on the other hand, can be completed in a much more timely manner in many cases. Because the process can be completed quickly and through other means than consolidation payments, bankruptcy could save an individual more money in the long run. True, bankruptcy can have some negative effects on a person's credit, but credit can be rebuilt over time.
Though Chapter 7 bankruptcy may seem like a frightening option, it can be beneficial for qualifying parties. By having the correct information about this option, Ohio residents may be able to see how bankruptcy could help a financial situation become more stable. Concerned parties may wish to explore the requirements and filing proceedings to determine whether utilizing this option could be right for them.
Source: The Huffington Post, "Why a Chapter 7 Bankruptcy Should Be Your First Option and Not a Last Resort", Steve Rhode, May 7, 2015