Bankruptcy is all about fears of money and expenses. It is not astonishing to note that many people do not have a proper knowledge about bankruptcy even after they have filed for it. Of all the bankruptcy cases filed in Cincinnati, the most common ones are chapter 11 and chapter 13. Both Cincinnati chapter 11 and Cincinnati chapter 13 are for the convenience for the people. However, before you file them, you need to have good information about bankruptcy and its aftermath.
What is bankruptcy?
Bankruptcy is basically your way out by which you can manage to relieve from debts. It is supervised by the court and you get to have a lawful permission to arrange for a proper allocation of your assets to your creditors. Mainly, there are two forms of bankruptcy, ‘straight’ or ‘liquidation’. However, bankruptcy is a solution to you if you have some serious financial problems, it may not be beneficial for everyone.
Who can be eligible for bankruptcy?
Anyone can file for bankruptcy. However if the court observes that the terms of the bankruptcy laws are not respected, the approval may be denied. This may be the case when your demands are observed to be more than your income. You need to consider your family needs and assets before you apply for bankruptcy. However, bankruptcy filing should be the last life saver; you must consider all the possible reasons of avoiding it.
What are the advantages and disadvantages of filing a bankruptcy case?
Pros:
The frequency of bankruptcy cases getting resolved is high which means most of the cases are settled giving you a fresh start.
The federal or state law will permit taking some of the property as exempt property.
In most cases, the creditors cannot claim your assets or property in future.
The chapters are orderly and give you an entire detail about the amount you have to pay to the creditors.
Disadvantages:
Applying for a bankruptcy case is a bad stain on your records. This would mean you cannot file for loans for at least 10 years. Applying for a bankruptcy case may be noticeable to many commercial companies.
Ones who co-signed the loan may also have to pay the debt.
To most of the people, bankruptcy still seems to be a sign of disgrace. The proceedings are a source of discomfort to many as the petitioner has to go through questioning about his financial conditions.
Tax results are something that can prevail as an aftermath of a bankruptcy case.
When to apply for bankruptcy?
First you have to get yourself a trustworthy non-profit counseling service. He will let you know whether there is a need to apply for bankruptcy or not. Next initiative is to sit in the bankruptcy means test. Through this test, the judge will make a decision whether the proceedings are to take place or not. Now examine your income. If it your debt is more than 25% of your income, you can file for bankruptcy, not otherwise. Consider consulting a qualified lawyer and take advice. Take all other options into considerations as much as possible. Bear in mind that bankruptcy is not something appreciable for your record, so avoid it till it becomes a pain in the neck.
Connor R. Sullivan recently worked with a Cincinnati Chapter 11 bankruptcy attorney while conducting research for a new article. He sought advice from a Cincinnati Chapter 13 bankruptcy attorney regarding his sister’s financial problems.
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