For anyone considering filing for bankruptcy, the entire process can seem overwhelming. While there are some important things to note, much of what you are wondering can be answered in a few short sentences.
Why do I need credit counseling? — The credit counseling requirement is to ensure that all debtors be put in touch with all of their debt relief options and learn some valuable tools in the debtors education courses.
What happens to my spouse? — It depends on whether you file together or separate. If you have mostly joint debts, it could be beneficial to file together to prevent your spouse from being held solely liable for the debts. If your debts are mostly individually owned by you, filing separate could better protect your spouse. Your Cincinnati bankruptcy attorney can help you determine the best plan for you and your spouse.
What property will be at risk? — Bankruptcy exemption laws offer a wide range of protection for most of your essential and necessary property. Personal property, tools of the trade, living requirements, and much of your fund accounts are exempt from liquidation. Typically, it is the unnecessary and frivolous items that are liquidated for debt satisfaction.
Will my credit be ruined?— The damage done to your credit happens long before filing for bankruptcy. High debt balances and missed payments is what damages your credit, not the actual mark of a bankruptcy filing. In fact, you are likely to see an improvement in your credit when your balances are erased and accounts returned to satisfactory after your debt discharge.
What about future loans?— Your chances at getting credit in the future aren’t ruined after a bankruptcy. There are actually many lenders that offer lines of credit to post-bankruptcy consumers. It is important to take the time to rebuild your credit and plan your next line of credit to avoid getting into financial trouble.