How an Ohio Bankruptcy Can Provide You With a Fresh Start

Bankruptcy can erase your unsecured debt and help you rebuild your credit score. Then you’ll have a brighter financial future ahead of you.

Bankruptcy. It sounds very scary. You’re imagining authorities hauling away your car and your valuables, not having any money, and not being able to access loans or credit ever again.

The truth of the matter is that these are all myths. Bankruptcy can be a very positive thing that will help you both repair your credit and ensure a brighter financial future for your family and yourself. Here’s how bankruptcy can offer you a fresh start with your finances.

You Can Increase Your Credit Score

Want a better credit report? Are you hoping to increase your score? Within just two years of filing, you can boost your score and make it better than ever before. Seven to 10 years is a myth; it doesn’t have to take that long. As soon as you’re out of bankruptcy, you could start to receive offers from credit card companies again. Then, you can slowly use your cards only for emergencies and pay your bills in full every month so that you have an excellent score.

You Can Eliminate Unsecured Debts

If you file for Chapter 7 bankruptcy, you can eliminate your unsecured debts, like credit card debt, and not have to worry about paying it all off. This can be a huge relief and leave room for you to pay down other debts and expenses.

You Can Change Your Mentality

Right now, you may feel like a prisoner to your debt. If you get it discharged, meaning you don’t need to pay it, that’s a huge burden off of your shoulders. It’ll help you live a happier life, and in just a few short years, you can start building again and use credit cards, mortgages, car loans, and other types of loans in a healthier way this time around.

What Bankruptcy Can’t Do

If you file for Chapter 13 bankruptcy, all your debt will not be discharged – that only applies to Chapter 7. However, you will be able to keep your assets; with Chapter 7, you may have to give up some assets in order to qualify.

Bankruptcy probably won’t discharge your student loans, and it definitely will not discharge tax-related debts, child support obligations, spousal support, government fines and penalties, some coop fees, and debts that you did not include in your court filings.

Also, you may face a few tough years since you won’t be able to apply for new loans. If you want to buy a new home or a car soon, bankruptcy might not be for you.

You’ll still need to be financially responsible even when you’re in bankruptcy. Though it can offer a fresh start, you don’t want to mess it up again. If you take out credit cards and loans right after your bankruptcy is over and you aren’t responsibly using them, you could end up in a bad situation all over again. That’s why it’s critical to talk with a bankruptcy lawyer and financial advisor before you decide to file. They’ll be able to offer you guidance on the ins and outs of bankruptcy so you can decide if it’s for you.

Get in Touch With Richard P. Arthur

Richard P. Arthur, Attorney at Law, can help you file for bankruptcy and get a fresh start with your finances. You can call 937-254-3738 for a consultation. He has more than three decades of experience helping clients in Dayton and Trotwood, as well as Montgomery, Greene, Miami, Clark, and Warren counties.