Bankruptcy is often a misconception that you just lost a lot of money. Some people think that it is just a status given to someone when they failed their personal business or were loaded in a gambling debt. While some people use bankruptcy as a way to escape being burdened by financial responsibilities. These are just some ways why we have to go through financial literacy and how law can make it easy or complicated even in those simple ways. With that, it is important to navigate and explore bankruptcy with an Ohio bankruptcy lawyer to further educate ourselves on why bankruptcy is a tool for financial freedom or financial stress.
Under the federal lawbook of bankruptcy cases, there are notable chapters that lawyers usually refer to in navigating bankruptcy cases. In Chapter 7, it basically states that you have to liquidate all of your remaining assets and inform creditors on what you currently have to pay off your remaining debt. This is best for low income individuals and those people who need to pay off their debt and regain their clean financial slate fast. This chapter helps individuals in settling their remaining credits in a short period of time while keeping in check on what they currently have to be exempted in repaying their debt and credit to their creditors. This is just simply creating a statement on why and how you have been in debt and in this chapter, you will have to pass some test to be qualified in not repaying. With the help of a bankruptcy lawyer, they can help you create a statement that is fool proof and help you calculate your current finances to avoid mistakes and be qualified for no repayment plan. Lawyers can also help you decide what assets can help you maximize your payment to shorten the period of paying for your existing debts while making sure that you still have enough assets and income to live in the next few months.
In the Chapter 13 of Bankruptcy which is reorganization, this is more applicable to individuals who have regular income that helps them pay off their debt and credit with reduced interest in their principal amounts. In this chapter, it will also help individuals to avoid foreclosure and repossession of their assets while keeping their payments and dues in an organized manner. As chapter 13 is a long-term plan which makes it more complex, a bankruptcy lawyer will help you navigate and review your income and assets on what would be the best option in trying to avoid a large amount of interest or principal amount.
The federal law has created this policy to help individuals in being overloaded by loans and credits. However, there are times that some individuals might not be qualified to become eligible in creating a repayment plan or reducing the interest that might have put them in a more financial burden. Bankruptcy lawyers will not only help you in refilling on time, or organizing your documents to avoid being dismissed and eligible in the court, but they will also help you navigate your assets and evaluate what you currently have and how it can help you build your track before and after the repayment of your loans. Not only that, but bankruptcy lawyers make sure to help you in protecting your assets and account to stop further damage in your current financial situation.
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