How might filing for bankruptcy help me to escape from debt?
If you are one of the nearly 800,000 Americans burdened by considerable debt, bankruptcy may offer you the escape you need. Each year, hundreds of thousands of Americans make the decision to file for Chapter 7 bankruptcy in order to free themselves from debt. Often, the choice to file comes when an individual can no longer handle the harassing phone calls or cannot continue to cope with the struggle to pay outstanding bills. Our Ohio Chapter 7 bankruptcy lawyers explore how bankruptcy might save you from debt and stress below.
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Reason #1: The Automatic Stay
One of the ways in which filing for bankruptcy may instantly help you financially is the automatic stay. When you file for Chapter 7 bankruptcy, bankruptcy protections will immediately bar creditors from continuing to pursue any sort of collection activity. This means that you will not receive any more threatening phone calls, lawsuits, or wage garnishments. Even further, any efforts to foreclose your home will cease. The automatic stay provision will act quickly to free your finances and allow you breathing room while your bankruptcy case proceeds.
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Reason #2: A Fresh Start
A fresh start is one of the top reasons why people decide to file for bankruptcy. Filing for Chapter 7 bankruptcy can wipe your financial slate clean, erasing debts like medical expenses, credit card bills, and other unsecured expenses. With these immense burdens released, you can focus on paying off essential living expenses. You may be able to keep your home and other property once you are free from the debts that once consumed your funds. Use your fresh start to reassess your finances and rebuild your credit.
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Reason #3: Keep Your Property
Under Ohio law, much of your property will be exempt from seizure in a Chapter 7 bankruptcy. You can obtain all the benefits of a Chapter 7 bankruptcy and still potentially retain the value of your home, your vehicle, household goods, spousal support, pensions, and personal items. Consult with a bankruptcy attorney to find out more about how bankruptcy might help you and what exemptions will apply.