Ohio Bankruptcy, Dayton Bankruptcy
bankruptcy attorney in Dayton Ohio

Should I Sell My Possessions Before Declaring Bankruptcy?

Should I Sell My Possessions Before Declaring Bankruptcy?

: Richard West Law Office

assetsWhen an individual finds himself in debt, he or she often takes one of a number of different paths in an attempt to deal with the problem. One option is selling possessions and assets to make the money to pay back the debt. When people take this option, they start by selling or giving up little things: cable TV, a boat, or some old jewelry. After a while, however, they often start getting desperate, and before too long their debt has sent them to a point where they are no longer living a healthy lifestyle.

Before you reach this option, and before you sell all of your assets and consider living out of your car, think about declaring bankruptcy. When a debtor declares bankruptcy in Dayton his or her possessions are typically protected by the court until the case has reached its conclusion, and often debts are discharged. Any possessions or assets the court deems superfluous may be sold to cover the debts, but the court will not leave a debtor destitute.

There are different types of bankruptcy as well, some of which allow a debtor to keep his or her assets. Chapter 13 bankruptcy, for example, is one in which the debtor must pay back all debts, but over an agreed upon and reasonable length of time. This allows the debtor to hold all current assets, but any disposable income gained in the future must be paid to the lenders until the debt is complete. The U.S. Courts website has further information on bankruptcy of all different kinds and how debtors can use bankruptcy to stay on their feet and hold onto their assets.