Bankruptcy in Ohio and Filing Limitations
Bankruptcy is often seen as a last resort. This is what people do when they have no other options and their financial situation seems hopeless, right? Well, there is another way to look at bankruptcy. It is a fresh start. Both Chapter 7 and Chapter 13 bankruptcy filings can be the start of new beginnings for those who have to file and alleviate the debts that have been burdening them. There are a few things that one should know before filing for these in Ohio, however.
Chapter 7 bankruptcy in Ohio is one where the debtor really gets a fresh start. Assets are given to a trustee and sold off, and the proceeds are then used to pay the debt. Certain items can be saved by reaffirming the debt on those items, such as a car, a house, and other items that are needed for living. Of course, certain debts, such as alimony and child support, cannot be expunged through Chapter 7.
Chapter 13 bankruptcy is also available in Ohio. This is the type of bankruptcy where a new three to five year agreement is agreed upon between the debtor and creditor. This allows you to save your home, your car, or anything else within the limitations of the law.
Something that many people are often confused about when it comes to bankruptcy in Ohio is how many times you can actually file it. The answer is really simple: there is no limit. However, you cannot file bankruptcy if you have already filed in the past eight years. It is important to think of consequences other than just the state statutes when considering filing for Chapter 7 or Chapter 13 bankruptcy, however.
A consideration that you must take into account is the impact filing bankruptcy multiple times will have on your credit score. Essentially, your record is supposed to be wiped clean from bankruptcy, but creditors will always have that doubt and see you as uncreditworthy if you take advantage of it more than once. They see you as someone who they will never make money off of.
Bankruptcy can definitely be a way out for somebody in a financial bind. Sometimes we get into those situations where we have mountains of debt and no means of paying them off. IN those situations, bankruptcy is a valuable option to have. While there is no limit to the number of times that you can file it (although there is a time limitation), it should not be an option that is overused.
Badnell & Dick Co., LPA isone of the top Ohio Bankruptcy law firms, serving clients in Ohio and nationally with our offices in Mansfield, Columbus, Dayton, and Lima Ohio. Our personal Injury-Disability law firm has helped our clients get results on complex