In recent years, there have been numerous home foreclosures around the US. According to a 2013 report from Policy Matters Ohio, there were 70,469 foreclosures filed in Ohio in 2012 – a slight decrease from 2011, but still a high number.
After people file a foreclosure, they do their best to rebuild their lives (and their credit scores). They might move to a new place, find a new job, build up their savings, repay various debts, and start planning perhaps for future property investments.
When managed well, bankruptcy has the potential to help you restart your life and re-organize your finances. One of the important benefits that bankruptcy can give you is breathing room from creditors.
Automatic stay
One of people’s chief concerns about filing for bankruptcy is the impact it will have on their credit score. They imagine that it will take years and years to improve their credit score, and the bankruptcy will have an irreversible impact on their ability to apply for loans or undertake other financial transactions in the future.
The purpose of bankruptcy is to give you a fresh start after finding yourself in a bad financial position. However, no one wants to file bankruptcy. Even as a Troy, Ohio Bankruptcy attorney, each case is initially approached asking the question, “Is bankruptcy really the best option for this client?” The ability to erase debt is not a quick fix and does have consequences. Nonetheless, there are many situations when it is the best solution.
Yes, you can file for bankruptcy without an attorney, but is that something you really want to do? You have probably heard the old proverb, “He who is his own lawyer has a fool for a client.” While this saying can come across as a bit rude and harsh, it has stood the test of time because it is true. A bankruptcy has far-reaching financial and legal consequences.
Has an unknown company informed you that they now own your credit account and are demanding payment? Once a bank or credit company has unsuccessfully attempted to collect a debt, many will sell the account to a debt buyer. This new company is not a debt collection agency, but actually owns your account outright. The debt buyer can now use all available administrative and legal remedies to collect the unpaid debt.
Recently, a potential client reached out in distress. Just before Christmas, he lost his job and lucrative income, and wanted to know if he should immediately file for bankruptcy protection. It is not uncommon for a person, who has suffered a major financial setback, to look at bankruptcy as a solution. However, while you may feel it is necessary to start the process quickly, each situation needs to be looked at individually. There is no single answer that works for everyone.
Bankruptcy in Springfield, Ohio can be a bit more demanding and strenuous than in other areas of the county because the state grants fewer exemptions. Regardless of this fact, Ohio’s bankruptcy rate is the eighth-highest in the United States. When filing, you have two options. A Chapter 7 (or Straight) Bankruptcy can absolve you of all debt, while a Chapter 13 (personal reorganization) will mandate monthly payments, for a set period, to the court.
Sometimes a person’s finances get out of control and they soon find themselves in a position where they can no longer afford to pay their debts. Bad things happen to good people all the time. Considering bankruptcy as a means to get relief is a possible alternative.