We all have been in a tough spot where we had bills to pay but simply just didn’t have the funds to pay all of them. No one wants to be in this state, but as the economy still continues to struggle, more and more American’s are finding themselves in this position.
One of the hardest hit areas in the U.S. is Ohio. Ohio has suffered a lot of job loss over the past few years. Many factories, stores, and shops have closed over the past decade and work is still very hard to find. So, what do you do when your bills continue to pile up, but you lack the funds to pay them?
There are several options to overcome your debt: borrow money, use credit cards to pay on other cards, or file bankruptcy. The first option is not available to many and the second will eventually lead to the third. Bankruptcy is never anyone’s first choice, but it can help you to get back on your feet and free yourself of bills you cannot pay. A Dayton,Ohio Bankruptcy Attorney, can help you understand all of your options.
There are two types of bankruptcy consumers can declare.
Chapter 7 bankruptcy clears the debtor of all debt. The consumer can choose to keep their home and cars, but all credit cards and other unsecured debts are forgiven. With this bankruptcy, it gives the consumer a clean slate to start over.
Chapter 13 bankruptcy is a little different from chapter 7. Instead of forgiving all debt, the debt is rolled into one payment and a negotiated payoff amount is settled upon. The debtor then pays off the amount over a period of years.
It is important to note that bankruptcy can only be filed once every seven years. To learn more about how bankruptcy can help you overcome your debt, contact us.