Reclaiming Financial Health Through Bankruptcy
If you’re struggling with overwhelming debt, you should know you’re not alone. National statistics show that in 2016, more than 475,000 Americans filed for Chapter 7 personal bankruptcy protection. Rates are even higher when the economy is doing poorly.
Despite how common bankruptcy is, people are often reluctant to talk about it due to shame and embarrassment. But debt problems aren’t always related to irresponsible spending. The loss of a job, a medical emergency or any other unexpected life event can deplete savings and quickly lead to unmanageable debt.
At Sunny M. Simon, Attorney at Law, we help clients resolve their debt issues and rebuild healthier financial lives. If you’re considering filing for bankruptcy, please give us a call to discuss your options.
Chapter 7 Bankruptcy For Individuals: The Basics
There are two common ways to file for personal bankruptcy, and Chapter 7 is the most common. Sometimes referred to as liquidation bankruptcy, Chapter 7 focuses on discharging most unsecured debts while giving up some personal assets to partially repay creditors.
The benefits: Most of your unsecured debts can be forgiven, including credit card balances, medical bills and some utility bills. As soon as you file, the judge will issue what’s known as an automatic stay, which prohibits creditors from engaging in collection activity or contacting you.
The drawbacks: You may be asked to forfeit some personal assets to satisfy part of your debt. However, there certain exemptions to protect your most important assets, including your home, vehicle, household items and retirement accounts.
Another drawback is that some debts are almost never dischargeable, including student loans, some tax debt and family support obligations. Discharging other debt, however, may make it easier to meet these obligations.
Finally, filing for Chapter 7 will stay on your credit report for 10 years, making it difficult to obtain credit and loans. A more positive way to look at this, though, is to consider that bankruptcy is not really worse for your credit than serious debts.
The above information is a general overview of Chapter 7. But there is no substitute for case-specific advice, so call to speak to an Ohio bankruptcy lawyer today.
Bankruptcy And Divorce
It is more common than most people realize for bankruptcy to follow divorce. Living alone as two single people is typically more expensive than pooling resources as a married couple. For couples who were already struggling financially, the lifestyle changes brought about by divorce can trigger the need to file for bankruptcy.
The reassuring news is that both divorce and bankruptcy offer opportunities for a clean break from the past and a new start. If you work with the right attorney, both legal processes can be handled concurrently or in quick succession.
Our firm is ready to guide you through divorce and bankruptcy with compassion and a focus on a brighter future.
Contact Us To Get Started
Sunny M. Simon, Attorney at Law, has offices in Independence and Cleveland. We proudly serve clients in Cuyahoga County and surrounding areas. To learn more, call us at 216-815-3606 or send us an email.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.