Personal finances are often a complex thing and despite your best efforts and hard work sometimes debt can be too much to overcome. Personal circumstances and professional issues can have an impact on your ability to successfully manage your debt as you have in the past. When you’ve been able to successfully pay your bills and manage your debt bankruptcy can feel like the absolute last resort. However, when you’ve reached the point where the debt is too much to be paid, interest rates continue to compound, and collection agents are calling you several times a week bankruptcy can be the best and most logical solution.
By hiring experienced bankruptcy attorneys you take the first step toward getting your finances back in working order. It’s important to remember bankruptcy is not the final step in one’s financial journey but a tool to help correct compounding issues where other solutions are not viable.
Is Bankruptcy for You?
Bankruptcy is not an all-in-one solution however, for situations where it is needed it is an important step toward financial recovery and stability. The causes of bankruptcy are many but the underlying cause is a loss of finical stability due to a reduction in earnings or an increase in debt. These root causes can include the loss of your job, a divorce, business failure, issues with your mortgage, severe injuries, needed care, and other medical emergencies. Bankruptcy causes are often very unpredictable and can happen to you even if you’ve been careful and in good financial shape before.
Bankruptcy can result in compounding debt and collectors contacting you multiple times a week via phone and letters. Collection agents can be so consistent as to become abusive and harassing. Aside from the economic strain, the psychological effects of finical issues can make your life less enjoyable. Bankruptcy can stop the phone calls, allow you to keep your assets, address your debt, and move on with your life.
Types of Bankruptcy
There are several types of bankruptcy and not all types apply to your unique situation. In addition, an incorrectly filled bankruptcy can add fees, expenses, and leftover debt. Hiring an experienced Ohio bankruptcy attorney ensures that your bankruptcy is filed correctly. When filing bankruptcy two types are the most common Chapter 7 and Chapter 13.
- Chapter 7: a Chapter 7 bankruptcy offers the chance to eliminate debt caused by both consumer and business interests. If you have an abundance of loans or debt you can’t pay Chapter 7 can have you rebuilding your credit quickly. Chapter 7 bankruptcies can be completed in a few months which makes them an ideal solution if your ultimate goal is to move past your finical issues and start moving forward.
- Chapter 13: a Chapter 13 bankruptcy allows you to pay off all or part of your total debts over a longer period typically three to five years in length. What makes Chapter 13 particularly useful is that it can allow you to keep an asset you’re behind on payments on such as your home or car. Chapter 13 lets you pay pennies on the dollar for what you owe and combines all your debts into a single payment. This can reduce fees and due to Ohio law causes collection calls to cease. If you have a lot of equity in your home or have a property you absolutely must keep, then chapter 13 may be the solution you need, plus Chapter 13 bankruptcies can be filed if you don’t qualify for a Chapter 7 bankruptcy.
How An Attorney Helps You
When you decide that bankruptcy is the best course of action hiring a bankruptcy attorney in Ohio is one of the most important steps you can take. When you have debt and bills you cannot pay the stress can become overwhelming, and it feels like what you owe has become the entirety of your life. Having an attorney means you have support and a skilled professional on your side who can help you make sense of your finances and guide you on what to do next. Financial issues are a problem that your attorney can help you solve.
The ways an attorney can help you include.
- Eliminate your existing debt
- End the harassing and seemingly endless collection of calls and letters
- Protect your most valuable possessions such as your home and car from foreclosure and repossession
- Cause any garnishment of your wages to stop
- Protect you from potential and existing civil lawsuits
When you hire a lawyer for a consultation you receive an overview of your options and the best choices for your unique situation. These options can include bankruptcy filing types, foreclosure defense concerning your lender, discussions with your creditors, and other finical matters.
The First Steps
Bankruptcy is no small thing and for many people knowing where to start is a challenge. By hiring an attorney you ensure that you are well-informed about your options, the overall process, and any questions you may have. A consolation will go a long way towards organizing your financial situation and how to correct it. Your attorney will go over your income, any outstanding debts you owe, and the overall goal you are trying to meet. Bankruptcy (like debt) is not the end of your financial future. Bankruptcy is a useful tool that allows you to resolve your monetary issues, pay off debt, and move on to the next phase in your life.
It’s interesting that you mention that a bankruptcy attorney can help stop collection agencies from harassing you. My wife and I have been receiving a constant stream of calls from people about our debt, so we’re thinking about contacting a bankruptcy lawyer on Monday. I’m going to see if there’s a good bankruptcy lawyer in our area who can help us.
I like that you talked about how a chapter 7 bankruptcy lawyer could protect their client’s most valuable possessions such as their house and car from foreclosure and repossession. I was watching the news last night and I saw a headline all about how a certain company has filed for bankruptcy. It looks like bankruptcy is a pretty difficult problem, but thankfully it seems lawyers could help their clients with it.
I talked with one of my cousins the other day, and it looks like he’s facing financial issues and is worried about losing his house. I’m glad you explained how a bankruptcy lawyer could help us analyze our debt and protect us, so I’ll be sure to share your insight with him now. Thanks for the advice on consulting with a bankruptcy lawyer before making a decision.
It’s terrific that you point out that an attorney can help make sure that some of your most essential assets are protected if you decide to file for bankruptcy. My wife and I have been dealing with an overwhelming amount of debt for the past six months, so we are considering contacting a bankruptcy lawyer this week. I’m going to look for a reputable bankruptcy attorney in our area that we can use.
Thank you for explaining that a bankruptcy lawyer can help you eliminate your existing debt. My friend told me that they are unable to settle their debts. I should advise him to coordinate with a bankruptcy lawyer to seek the best solution.