What Happens When Your Debt Becomes Too Much?
Too much debt causes many negative things to happen in your life, such as living with unbearable stress every day with no relief in sight. Debt can change moods and behaviors in adults and children. Being in debt causes you to have low work production and missed days at work. Debt causes marriages to fall apart due to money arguments and lack of communication within the family unit. Resentment quickly sets in on once good marriages.
Isolation of family members can set in along with discouragement, frustration, and anger. Many times debt creates divorce, fear of mortgage foreclosures, and repossession of vehicles. Debt causes insurmountable pressure.
What Causes Overwhelming Debt?
Bad things happen to good people related to overwhelming debt. Reaching the pinnacle of bankruptcy comes about through many different means. Things can happen to you that are not in your control such as,
- Job loss
- Catastrophic accidents and illnesses
- Medical bills
- Poor money management
- Unprepared emergencies
- Unpaid bills
- Living beyond your means
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When There is No Option Except to Declare Bankruptcy?
When you become deeply in debt, sometimes you feel like there is no way out of your financial mess other than to declare bankruptcy, and you may be correct. Debt has taken over your life, and you feel like you have no options.
Bankruptcy is a process that you can go through to balance out your finances, discharge some debt, and enter into a new kind of financial freedom when everything else fails. Bankruptcy is a legal process by which a person or company begins a process by first filing a bankruptcy claim to evaluate debts and assets and set a plan aside to repay a portion of the debt.
While you can file a partition for bankruptcy, it is a wise idea to consult and hire a leading, experienced, and skilled Ohio bankruptcy attorney. Do not make the mistake of trying to file bankruptcy on your behalf.
While state laws differ slightly, you cannot possibly keep up with all the laws of your state regarding bankruptcy. Laws can become complicated and confusing, which is why it is best to hire an Ohio bankruptcy attorney.
This legal proceeding allows you and companies an element of freedom for debt. At the same time, you can provide your creditors with a repayment plan. According to the United States Bankruptcy Code, if you decide to file bankruptcy, your case is heard in the federal court system.
Your attorney can explain to you the difference between filing Chapter 7 versus Chapter 13 bankruptcy. While bankruptcy offers you a breath of fresh air and new-found freedom with your debts, this bankruptcy remains on your credit report for up to ten years. These two types of bankruptcy relate to your assets and your income level.
This process makes it difficult for you to borrow any money. Chapter 7 and Chapter 13, are the most regular types of bankruptcy. A few other types make filing confusing, which is why you need to hire a bankruptcy attorney to help you determine which type is best for your situation.
- Chapter 7, Liquidation
- Chapter 9, Municipalities
- Chapter 11, Large Reorganization
- Chapter 12, Family Farmers
- Chapter 13, Repayment Plan
- Chapter 15, Used in Foreign Cases
Before declaring bankruptcy, you must stop and consider the following issues. The severe consequences of filing bankruptcy such as,
- Bankruptcy endures on a credit report. For 10 years.
- More difficult to obtain a credit card
- Difficulty in obtaining a car loan, mortgage, or rent an apartment or home
- Causes higher insurance rates
- Difficulty in getting a job
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Protect Your Property
Chapter 7 helps to protect your property. Because you file, Bankruptcy does not mean you must give up everything. You are allowed to keep a certain amount of assets that assist you in living and working. You can keep household items, your retirement account, household items.
However, you must give back the following items.
- Expensive vehicles
- Recreational vehicles
- Second homes or vacation homes
- Valuable furniture
- Valuable artwork
- Investment accounts
- Savings Accounts
Items that you can declare in your bankruptcy include many types of common debt such as.
- Credit card balances
- Retail store charge accounts
- Medical bills
- Personal loans
You Cannot Declare Bankruptcy on the Following Items
Filing bankruptcy does not clear all of your debt, such as the items you cannot declare bankruptcy, like student loans, mortgages, child support, alimony, debts resulting from willful and malicious acts.
Contact Your Ohio Bankruptcy Attorney for a Fresh Financial Start
When your debts make you feel overloaded and overwhelmed, contact this Dayton, Ohio bankruptcy attorney for help. The most common cause of bankruptcy in Ohio is, medical bills. To pay overwhelming medical bills you may use your credit card to cover your medical costs. The higher rate of interest on credit cards only stand to max-out the credit card with mounting medical bills. This attorney can explain to you a better way.
Call for a free, no-obligation consultation. This experienced, skilled, and licensed bankruptcy attorney cannot help you get on a healthier road of financial freedom until you make your first call.
If you live in Dayton, Ohio, or surrounding areas, give this attorney a call today to discuss your financial situation. Find out if bankruptcy is what you need to do to get on a healthier financial path. Bankruptcy can create a fresh start.