5 Things You Should Know Before Filing for Bankruptcy

Published 07/03/20 by Admin

things to know before filing a bankruptcy

Being in debt can be crippling. Depending on the circumstances, bankruptcy may be your only option for relief. However, there are five things you must know about bankruptcy before you go ahead and file.

First, you should decide whether bankruptcy is the right option for you. Some people aren’t ideal candidates while others will qualify. For example, if your wages are being garnished or if you are at risk of losing your home to foreclosure, you are a good candidate. Think about whether bankruptcy will adversely affect your life as well, such as your ability to get insurance or rent an apartment.

You should always look into alternative methods for relieving your debts before filing bankruptcy. If there are any possible ways you can bring in more money, you should consider them. If you are out of options, bankruptcy is probably appropriate for you.

Knowing the two types of bankruptcy you can file as an individual is important. Chapter 7 bankruptcy wipes out your debts while Chapter 13 allows you to pay at least some of your debts back and, essentially, gives you the chance to reorganize your finances. However, filing for Chapter 7 stays on your credit report for 10 years while Chapter 13 remains for seven.

You must know all the rules of bankruptcy as well. You are required to enroll in a credit counseling course with an agency. This is a requirement because it allows you to work with a credit counselor to determine if you can avoid actually having to file bankruptcy.

Finally, you should know that you cannot discharge certain debts when filing for Chapter 7 bankruptcy. Child and spousal support, some taxes and student loans are a few examples of such debts.

If you are located in Ohio and think bankruptcy is the right course of action for you, it’s important to speak with skilled Columbus Ohio bankruptcy attorneys. The best bankruptcy attorney Cincinnati Ohio has to offer can coach you on how to proceed with your case. Contact Columbus Ohio bankruptcy attorneys to discuss your case with the top bankruptcy attorney Cincinnati Ohio has at your earliest convenience.