Having a huge pile of debt hanging over your head is stressful and frustrating. Your anxiety may be heightened by the fact that collection letters keep coming, and debt collectors keep calling. At this point, some of your debts have been discharged by their original holders and sold, so you're not even sure who all is calling you.
You know that a Chapter 7 bankruptcy filing goes on your credit report. You can't avoid that. Of course, missing payments for months or even years on end also goes on your report, so this isn't to say that adding the Chapter 7 filing is necessarily a bad thing. But it does have a negative impact on your credit score at first.
Naturally, bankruptcy can strike for many different reasons, and no two cases are exactly alike. That said, you can look at some of the main reasons for bankruptcy in an effort to understand the trends and the warning signs.
There are many positives associated with filing for Chapter 7 bankruptcy. One main benefit is that most debtors have an opportunity to keep most of their assets by filing for it. It's also a relatively quick process lasting only a matter of months. It's sadly not always possible to keep your vehicle during this process, though.
What's the purpose of filing bankruptcy when your student loans are crushing you as hard as your credit card debt? After all, it's not like student loans can be discharged in bankruptcy, right?
The short way to describe Chapter 7 bankruptcy is simple: It eliminates your debt after you liquidate some of your assets to pay off some of what you owe.
It's time to break down one of the most common bankruptcy myths: That's it's morally wrong to file. If you don't think that already, you may think it's absurd, but rest assured that a lot of people struggle with this. It's one of the main reasons that people who could really use bankruptcy are reluctant to file. They feel like they are doing something wrong, and they can't stomach it.
Young professionals often find themselves between a rock and a hard place. When they first graduate, they often struggle to find employment. This leads many down a path of debt. Creditors come knocking. Many consider filing bankruptcy for a fresh start. They hesitate in filing for it out of fear for how it may affect their job prospects though.
A question frequently asked of consumer bankruptcy law attorneys is whether a bankruptcy wipes out student debt. Unfortunately, in all but the rarest circumstances, it does not.
If you are a resident of Medina or live anywhere in Medina County and want to file for bankruptcy, you must file your petition in the United States Bankruptcy Court in the Northern District of Ohio. According to their website, the court serves residents of 40 counties in Northern Ohio and has offices in Youngstown, Canton, Akron and Cleveland.