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Addressing misconceptions about bankruptcy

On Behalf of | Jun 12, 2023 | BANKRUPTCY LAW - Bankruptcy

There may be many individuals who wish to pursue relief from the trials of financial strain but remain hesitant to initiate the process. While bankruptcy could be just the tool to help achieve similar goals, some individuals in Ohio may have reservations about this process. Some reservations may stem from misconceptions about bankruptcy and addressing such topics could help those who struggle with high levels of debt prepare to take the necessary steps to safeguard their futures. 

Common misconceptions 

One of the most prevalent misconceptions about bankruptcy may pertain to the notion that one might lose all his or her assets in the process. While liquidation may be a component of Chapter 7 bankruptcy, that does not mean one will lose everything. There may even be some scenarios in which a person might be able to retain ownership of most or all possessions. Chapter 13 bankruptcy allows a person to keep all assets while reorganizing finances and repaying debts over a certain period. 

Studies also indicate that there may be some who feel that filing for bankruptcy indicates some form of failure or that paying off debts is a better path. However, sometimes it might prove challenging or even impossible to combat high levels of debt and outlets such as bankruptcy may be just the tool with which to preserve one’s future interests. The idea that bankruptcy might spell doom for one’s financial future may be another common misconception, as one may be able to begin rebuilding his or her credit score soon after finalizing the process. 

Exploring the options 

While bankruptcy could help provide much-needed relief during times of monetary strain, this can still be a major life decision. Those who remain uncertain whether this might be the best path forward might consider speaking with an attorney for advice in carefully evaluating their situations. An attorney can help a client in Ohio better understand what the bankruptcy process may have to offer and assist him or her in choosing the best path with which to pursue debt relief.