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Choosing bankruptcy or defaulting on debt

On Behalf of | Oct 11, 2023 | Bankruptcy

People in Ohio may refuse to pay their debts if they cannot stay on top of their bills. This is called defaulting. However, their lenders may still sue them for the amounts they owe or sell their loans to collection agencies. Bankruptcy may be the best option for achieving a fresh financial start instead. 

Bankruptcy is better than defaulting 

Defaulting on loans means violating cardholder agreements or promissory notes with lenders to make on-time payments. Meanwhile, a bankruptcy filing involves listing assets and debts, then determining the best method for resolving the debts. Borrowers often complete bankruptcy filings after defaulting on loans. 

A primary benefit of a bankruptcy filing is that it can protect a person’s assets from seizure by creditors. This legal process may also protect people from having their inheritances or future wages garnished. It can be a helpful way for people to protect their current assets and safeguard their futures. 

How a bankruptcy attorney can help 

An attorney in Ohio can help an individual erase his or her debt through the bankruptcy process. The attorney can help the individual file his or her bankruptcy paperwork as well as represent him or her in disputes with creditors that may arise after the filing. Another important duty of a bankruptcy attorney is to remain in communication with the court-appointed trustee responsible for overseeing his or her client’s bankruptcy case and liquidating the client’s assets as needed. The attorney will strive to protect his or her client’s rights and best interests during this process.