It is never easy to deal with mounting debt. The number of Ohioans dealing with large debts has gone down since the darker days of the Great Recession, but there is still a significant number of people and families struggling with staying current with payments and being hounded by creditors.
Bankruptcy may be a good solution for people who cannot manage their debts. There is a variety of bankruptcy options, such as Chapter 7 and Chapter 13. Both have different benefits for different types of debtors.
Chapter 7 is also called a liquidation bankruptcy, in which a trustee may sell off personal assets and negotiate the resolution of debts. Chapter 13 is often known as a reorganization bankruptcy, which often involves a repayment plan and the retention of assets.
Ohioans considering bankruptcy, already hard up for cash, may not want to retain a lawyer for the process. A new service in the Buckeye State that helps with simple filings may make this more attractive. But legal representation has many benefits.
An attorney may help make the initial decision to file bankruptcy and help choose which type is best for a person based specifically on his or her circumstances. Once a bankruptcy filing has begun, legal representation may ensure that costly errors are not made. A second pair of eyes on application may save thousands of dollars and help people keep their essential assets.
Legal fees are often negotiable, and do not cost as much as the mistakes a person may make if filing for bankruptcy alone. It is important to consider a lawyer if you are considering bankruptcy.
Source: Akron Beacon Journal, "Letters to the editor: Jan. 28 — Tired of E-Check follies; University of Akron sends wrong message," Jan. 27, 2018