Bankruptcy is all about worries of money and expenses. It is not surprising to note that most 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 popular 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 should have proper information about bankruptcy and its consequence.
What is bankruptcy?
Bankruptcy is basically your solution by which you can easily relieve from debts. It is supervised by the court and you get to have a legal authorization 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 way out for you if you have some serious financial troubles, it may not be recommendable for everyone.
Who can be eligible for bankruptcy?
Anyone can apply 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 needs are seen to exceed your income. You should think about your family needs and assets before you file for bankruptcy. However, bankruptcy filing should be the last life saver; you should think of all the possible reasons of avoiding it.
What are the advantages and disadvantages of filing a bankruptcy case?
Advantages:
The frequency of bankruptcy cases getting settled is high which means most of the cases are settled giving you a fresh start.
The federal or state law will allow taking some of the property as exempt property.
In many cases, the creditors cannot ask for your assets or property in future.
The chapters are orderly and give you an entire detail about the sum you have to pay to the creditors.
Cons:
Filing 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 noted by several commercial companies.
Ones who co-signed the loan may also have to pay the debt.
To many, bankruptcy still seems to be an indication of irresponsibility. The hearings are a source of discomfort to many as the petitioner has to go through interrogation about his financial conditions.
Tax results are something that can continue as an aftermath of a bankruptcy case.
When to file bankruptcy?
First you have to get yourself a trusted non-profit counseling service. He will tell you whether there is a requirement to file for bankruptcy or not. Next step is to sit in the bankruptcy means test. Through this test, the judge will decide whether the hearings are to be held or not. Now take a look at your income. If it your debt is more than 25% of your income, you can apply for bankruptcy, not otherwise. Consider consulting a good lawyer and take his counsel. Take all other possibilities into account as far as possible. Do remember that bankruptcy is not something good 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. Click here to get your own unique version of this article with free reprint rights.
