When facing considerable debt, looking into bankruptcy as a serious option may be a step that many Ohio resident wish to take. There are various bankruptcy avenues, such as Chapter 7 and Chapter 13, that could potentially fit particular situations. If individuals earn a steady income but are overwhelmed with financial responsibilities, they may wish to determine whether they could qualify for Chapter 13.
Chapter 13 bankruptcy involves a court-approved repayment plan, which is why it is most often useful to individuals with a reliable income. One man in another state recently opted to follow this route after his debt began to considerably exceed his assets. Reports stated that the man is a city council member and that his annual income is $60,000.
The report went on to state that the man is currently facing debt liabilities that exceed $100,000 and could be as much as $500,000. It also noted that his current assets are approximately valued at $50,000. Apparently, a home mortgage lender was the only creditor listed. Because the man does have a steady income, a repayment plan under Chapter 13 bankruptcy will likely allow him to address his outstanding debt in an effective manner.
If Ohio residents find themselves facing debt scenarios similar to the man in this case, they may also wish to explore Chapter 13 bankruptcy. If individuals find themselves interested in learning more, they may wish to consult with an experienced bankruptcy attorney. Discussing the specifics of their situations may allow them to feel more confident in their decision making ability regarding how they would like to go about managing their debt.
Source: reporternewspapers.net, "Brookhaven City Council member files for bankruptcy", Dyana Bagby, May 11, 2016