For Those in Serious Debt, Bankruptcy is Liberating

serious debt could be helped by bankruptcy

Carrying crushing debt can become unbearable.  Bills pile up, and you’re harassed by creditors and may be faced with foreclosure of your house, repossession of your car, utilities being shut off, and garnishment of your wages.  You feel overwhelmed and don’t know where to turn.

You are not alone. Overall household debt stands at more than $13 trillion, according to the Federal Reserve. That includes $8.8 trillion in mortgages, $1.4 trillion in student loans, $1.2 trillion in car loans and more than $1 trillion in credit card debt.

If serious debt is making your life unmanageable, help is available. Consider the relief and fresh start that filing for bankruptcy can bring. Bankruptcy, a legal way to have many debts forgiven, can put you on the road to financial recovery.  If you’re a good candidate for bankruptcy, filing can keep creditors from harassing you and seizing your possessions, allow debts to be forgiven, and provide a way for you to keep your assets and begin to rebuild your life.

How do you know whether bankruptcy is right for you?  The skilled and experienced Columbus bankruptcy attorneys at Fesenmyer Cousino Weinzimmer understand that financial problems can happen to even the most hard-working and well-intentioned people.  We offer a free consultation to evaluate your financial situation.  We can help by looking at your income, your debts and your goals and coming up with a debt-relief plan that’s best for you.

Delaying can only make your situation worse, so contact us online or call to set up your free consultation today.

Understanding Types of Bankruptcy

The United States Bankruptcy Code provides several ways for people to file bankruptcy.  The most common types, Chapter 7 and Chapter 13, have several similarities and differences.

* Chapter 7 bankruptcy is the most common way to file individual bankruptcy. It can discharge (eliminate) most or all consumer debts. If your income is too low to pay credit card bills, medical bills, utilities, payday loans or personal loans, this may be your best option.  Chapter 7 is over in a few months, so you can begin rebuilding credit quickly. You might have to sell property to help pay off creditors, but there are Ohio bankruptcy exemptions that list types of property that cannot be sold.  Exemptions can include clothing, cars, work equipment, and household furnishings. If you do not own a great deal of property, your possessions may all be exempt, qualifying you for a “no asset” case.

Additional Reading:  What Types of Debt are Most Harmful for Your Credit?

Not everyone is eligible for Chapter 7. Your income and debt will be subjected to something called a “means test” to determine whether you qualify. If you are not eligible, filing for Chapter 13 may be an option.

Chapter 13 bankruptcy lets you repay some or all of your debt affordably over a three- to five-year period. This plan is best for those who don’t qualify for Chapter 7, who have a steady income, temporary financial problems and a desire to repay some of the debt in order to keep an asset such as a car or a house.  Chapter 13 allows you to consolidate your payments to avoid fees and fines.  If you successfully complete the court-approved payment plan, the debts covered by the plan are discharged.

Both Chapter 7 and Chapter 13 have an automatic stay provision that stops harassing collection activity. You will still be responsible for certain debts, including child support, spousal support obligations, student loans and most unpaid taxes; but bankruptcy can eliminate credit card debt, medical bills, and unsecured loans, giving you relief that helps you meet remaining obligations.

Contact us for Support and Guidance

The seasoned and compassionate bankruptcy lawyers at Fesenmyer Cousino Weinzimmer are dedicated to helping you through the maze of personal bankruptcy so you can obtain financial freedom and relief from serious debt.

We offer a free consultation to evaluate your financial situation, make sure you are aware of all your options and help you decide on the path to a brighter future that makes sense in your individual case.  We understand what you are going through and will walk you through the process.

Don’t delay. Contact us online or call today for your free consultation so we can determine what debt relief solutions will work best for you.

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