When Ohio residents are looking for ways to handle their debt issues, they may consider filing for bankruptcy. However, there are multiple types of bankruptcy, and individuals may not know the difference between Chapter 7 and Chapter 13. As a result, they may not understand which could suit their circumstances and how either could be beneficial in attempting to overcome considerable debt.
If individuals are interested in bankruptcy, they may wish to know that Chapter 7 is the most common type of personal bankruptcy. This option allows individuals to liquidate assets in order to pay back debts. An individual is appointed to ensure that the process is correctly carried out, and in approximately four to six months, individuals may complete the process.
Another option for bankruptcy is Chapter 13. This process takes considerably longer than Chapter 7 as three to five years are often required. With this option, individuals follow a repayment plan that has been approved by the court that allows them to repay debts over time. Such plans may cover all of a person's debt or may only cover certain types of debt. This option may be helpful for individuals who make too much money to qualify for Chapter 7.
Before deciding on how to move forward with debt relief, Ohio residents will likely want to explore their options to determine what may be best suited for them. If they wish for assistance, reliable information is offered by experienced legal professionals who practice in the field of bankruptcy. These professionals can also help determine whether an individual may qualify for Chapter 7 or Chapter 13 bankruptcy.
Source: Fox News, "Using personal bankruptcy to hit the reset button on distressed properties", Robert Massi, Aug. 27, 2015