When debt becomes too overwhelming, many Ohio residents may begin thinking about what proactive steps they may be able to take in order to get a handle on their finances. Bankruptcy is a common form of debt management that has helped and will continue to help numerous individuals get back on track. If consumers are interested in this option for their situations, they may wish to explore Chapter 7 and/or Chapter 13 bankruptcy. 

Chapter 7 is also known as liquidation bankruptcy. During this process, individuals who qualify will liquidate their assets in order to pay back some of their debts. This proceeding often works best for individuals who do not have a considerable amount of assets or income and, as a result, are unable to repay debts. 

With Chapter 13, qualifying individuals will work with a court-approved repayment plan in order to repay debts. Often these debts are reduced through the bankruptcy process or discharged altogether, so the monthly payments may be a fraction of what was originally owed. These more manageable amounts could allow for individuals to complete the process in approximately five years. 

Because each case is different, individuals may have varying factors that could play a role in which type of bankruptcy may be best for them. Additional information on Chapter 7 and Chapter 13 bankruptcy could allow interested parties to determine whether following this path could be right for them. If Ohio residents would like more personalized assistance, they may wish to consider consulting with experienced bankruptcy attorneys in order to gain further knowledge. 

Source: lawndalenews.com, “Bankruptcy, What’s It All About?“, March 24, 2016