If you are considering declaring bankruptcy in Ohio, you may be wondering if this is the right fit for your financial situation. There are many benefits that bankruptcy can provide but you need to understand what this option entails and the types of bankruptcy you can take advantage of.
Are you wondering when you should consider bankruptcy in Ohio? If so, check out this article, where we will be discussing when to file bankruptcy, the benefits of bankruptcy, and the steps you need to follow.
When Should You Consider Filing Bankruptcy in Ohio?
A large percentage of Americans are in some type of debt, whether it be credit card debt, homeowners debt, or student debt. Depending on the type of debt you have, how extensive it is, and the different forms, you may find yourself in a financial situation where you can no longer afford these financial obligations. When this happens, you may want to consider filing for bankruptcy in Ohio.
Bankruptcy is an option that you should only ever consider if you have exhausted all of your other financial options for paying off your debt. You may have escalating medical bills that you have no way of repaying, or you may have other large debts that would be impossible to pay off over the next few years.
You should consider claiming bankruptcy if this is a situation you are facing or if you are being harassed from creditors or are facing looming foreclosure threats. Bankruptcy is an option that can help you discharge some of your debt, help you save your home, and protect your belongings from creditors.
What Happens When a Person Files For Bankruptcy?
Knowing when you should claim bankruptcy can be very difficult since this isn’t an option that anyone necessarily wants to use. Although there are many benefits to declaring bankruptcy in Ohio, there are also consequences, such as having it negatively impact your credit score. However, if you are in a difficult financial situation with no other way out, bankruptcy can be the best solution.
Here are the main things that will happen when a person files for bankruptcy in Ohio.
Safeguards Assets
No matter what type of bankruptcy you file for, this can help you better protect your assets. Your assets are usually the first things that creditors will go after if you are not able to make payments on outstanding debts. Bankruptcy ensures this does not happen by providing outlines for what assets are protected when you file.
For instance, Chapter 7 allows you to keep certain assets while others will be sold to pay outstanding debts. On the other hand, Chapter 13 allows you to keep all of your assets while following a repayment plan.
Discharges Debts
Different types of bankruptcy options will discharge debts in different ways and will prioritize specific types of debt as well. This can significantly improve your financial situation, especially when it comes to extensive debt that you could never foreseeably repay on your own.
You will need to do research on what types of bankruptcy discharges and what types of debts before you decide on the best option for your situation.
Ends Harassment
When you declare bankruptcy, an automatic stay immediately takes effect, which prevents creditors from contacting you in any way to collect. This will help to end any harassment or threats you have been experiencing. From this moment onward, creditors will have to follow the legal guides in Ohio for bankruptcy proceedings and cannot personally contact you in an effort to collect.
Starts Fresh
The main benefit of declaring bankruptcy in Ohio is that it gives you a fresh financial start. Although there are downsides to declaring bankruptcy, if you are facing an overwhelming amount of debt, this can allow you to find a solution so that you will have a better financial future. This will look different depending on the bankruptcy option you choose, as Chapter 7 is more of an immediate option, while Chapter 13 usually takes between three and five years before the bankruptcy process is completely over.
How to Declare Bankruptcy in Ohio
Now that you know when the right time to file for bankruptcy is and if you should consider bankruptcy in Ohio, how do you start the process? Every type of bankruptcy will look a little bit different, but there are some initial steps you need to take when you have decided that this is the right option for your situation.
Something to keep in mind is that you should hire a bankruptcy attorney in the state of Ohio before proceeding with the bankruptcy process. Although it may be tempting to try to do this on your own, having an attorney on your side will help you choose the right option and avoid running into common challenges. An attorney can also help you locate bankruptcy exemptions that you may qualify for, which can help you achieve a better financial outcome.
Here are the steps to follow when declaring bankruptcy:
- Decide on the type of bankruptcy.
- Check to ensure you qualify for bankruptcy.
- Determine what debt will be discharged.
- Look into asset protection and exemptions.
- Take a credit counseling course.
- Fill out and file bankruptcy paperwork.
- Attend the 341 creditors meeting.
- File your debtor’s education course certificate.
One of the most critical steps in the bankruptcy filing process is providing all of the necessary documentation. Common documents you will need include tax returns, proof of income, bank statements, investment and retirement statements, a Social Security card, and a government ID or driver’s license. You may also be asked to provide things like mortgage and car loan statements, valuations of assets, car valuations, home valuations, etc.
Contact a Bankruptcy Attorney in Ohio
Are you considering bankruptcy for your financial situation? Richard P. Arthur, Attorney at Law, can help you navigate the process of deciding if bankruptcy is a good option for your debt. Richard P. Arthur has handled hundreds of bankruptcy cases across Ohio and can help you with every step of the bankruptcy filing process. Contact us today at 937-254-3738 for a consultation.