Debt issues can be difficult to handle on one’s own. Of course, there are paths that Ohio residents can take as individuals, such as working on paying down balances or trying to consolidate debt, but some parties may wish to take bigger steps to handle overwhelming debt. Bankruptcy is one avenue that could assist individuals discharge debt, though it may be a complex process at times.
First, individuals may wish to understand the various types of bankruptcy. Chapter 7 and Chapter 13 are the two most common forms of personal bankruptcy. Chapter 7 allows for the liquidation of assets in order to pay debts. Chapter 13 involves a court-approved repayment plan. If an individual’s income exceeds a certain amount, he or she may not be able to qualify for Chapter 7.
If individuals are liquidating, they may have some exempt property that they may be allowed to keep. The terms of what qualifies as such property can vary from state to state, and not all individuals may meet the specifications for the exemptions. However, funds in retirement accounts, pensions, educational funds and other similar accounts are typically unaffected by bankruptcy filings, if individuals have such accounts to consider.
Exploring bankruptcy options could allow Ohio residents to determine whether they may qualify to take such a path. Information on Chapter 7 and Chapter 13 could allow interested individuals to gain valuable knowledge. No one should feel as if they are unable to escape their debt burdens. If additional assistance is desired, consulting with an experienced bankruptcy attorney could be a step to consider.
Source: The Huffington Post, “Some Bankruptcy Legal Facts and Suggestions“, Brad Reid, Feb. 3, 2016