Ohio consumers who have fallen on hard times due to any of the various unanticipated twists and turns life can dish out may be looking for ways to regain financial stability. Bankruptcy is often the most efficient way to achieve that. Knowing the consequences of filing for bankruptcy can help consumers determine if it is the best option for their circumstances.
Most people first try several other ways to achieve debt relief, often causing them to get deeper into debt while enduring harassment by debt collectors. Moreover, attempts to negotiate repayment plans directly with creditors may not solve the problem. If one’s liabilities substantially exceed available assets, settling the full amounts of the debts will likely be out of the question. Some are afraid that a bankruptcy petition may cause them to lose their IRAs, but creditors can lay no claim to individual retirement accounts.
Bankruptcy does have an impact on the filer’s credit score and credit history. However, while trying all the other debt relief options — that may not even resolve the issue — unpaid obligations continue to be reported to the credit bureaus. It is worth noting that some lenders work to accommodate those with a bankruptcy on their record, particularly after a discharge has been granted and efforts to rebuild credit are underway.
The most appropriate first step for an Ohio consumer considering bankruptcy is to consult with an attorney experienced in handling these matters. The lawyer can assess the circumstances and suggest the best way forward. There are different bankruptcy options, and a lawyer can explain the pros and cons of each option along with the legal procedures that will follow. Being fully informed can help the consumer to make choices that may lead to a fresh financial start.
Source: investopedia.com, “Should You File For Bankruptcy?“, Glenn Curtis, Accessed on Dec. 9, 2016