You’re in a lot of debt, and it just seems unmanageable. One of your options is to file for bankruptcy.
While it may sound scary, filing for bankruptcy could actually be the best choice for your future. It could help you not only get back on track with your finances, but also raise your credit score in the long run and make you more attractive to potential lenders.
You can decide between Chapter 7 and Chapter 13 bankruptcy in Ohio. Here’s some more information on both.
What Is Chapter 7 Bankruptcy?
Chapter 7 is the most popular type of bankruptcy. It’s also called liquidation bankruptcy. The court is going to assign a trustee to oversee your asset liquidation in order to pay off your creditors. Unsecured debts are going to be eliminated – aside from any taxes and child support you owe as well as your student loans. Your household income needs to be below the median household income for you to qualify. Exempt property includes some home equity, car equity, cash, and jewelry, among others.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy reorganizes your debt and allows you to retain your assets. Over a period of three to five years, you’ll make monthly payments to pay back your debt. The repayment plan is going to include either reduced interest or interest-free payments.
Get in Touch With Richard P. Arthur
Richard P. Arthur, Attorney at Law, will help you with filing for Chapter 7 or Chapter 13 bankruptcy. You can call 937-254-3738 for a consultation. He has nearly three decades of experience helping clients in Dayton and Trotwood, as well as Montgomery, Greene, Miami, Clark, and Warren counties.