Choosing Between the Two Types of Personal Bankruptcy in Cincinnati OH

by | Nov 29, 2017 | Bankruptcy Law

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Borrowing can be an effective way to achieve goals that might not otherwise be possible. Just about every homeowner in the Cincinnati area, for instance, relies upon financing to make buying a house practically. Likewise can borrowing to fund the purchase of a reliable vehicle be a responsible, advisable thing to do.

Even among those who take care to borrow only when necessary, however, financial problems can easily arise. When debts grow to the point that paying them seems to be impossible, considering Bankruptcy in Cincinnati OH can easily make sense. Fortunately, there are lawyers who are ready to provide advice and assistance.

Two Types of Personal Bankruptcy, Each With Its Advantages

For individuals considering Bankruptcy in Cincinnati OH, there are two basic types to look into. The details and protections associated with each of these have been laid down in federal law and each process is administered by a designated bankruptcy court.

Chapter 7 bankruptcy involves the complete dissolution of a debtor’s financial obligations. The freedom from debt that this form of bankruptcy enables quite regularly proves to be attractive to those in the most difficult financial situations. On the other hand, this type of bankruptcy will also expose at least some of a debtor’s assets to liquidation. With the personal property being sold to partially pay off creditors, plenty of associated inconvenience can result.

The alternative is a process known as Chapter 13 bankruptcy. Under the provisions of the related laws, a bankruptcy court will instead work out repayment arrangements with all of a debtor’s creditors. In exchange for committing to the repayment of reduced sums over the course of three to five years, a debtor will be allowed to keep all of their assets and possessions.

The Right Type of Bankruptcy Can Make Getting Back on Track Much Easier

Given that they are so different, choosing appropriately between these two styles of personal bankruptcy is always important. Know more about us and it will become clear that there are sources of counsel and assistance which can be relied upon in any case. When financial difficulties come to seem insurmountable, seeking out help will almost always make a good deal of sense.

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