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There are a lot of misconceptions about bankruptcy. For example, some people think it will solve all their problems by discharging everything they owe to everyone. Others think filing will only add to their financial struggles because they'll lose all their property in the process. In reality, though, what actually happens for most people falls somewhere between these two extremes. 

What Bankruptcy Can Do

bankruptcy People who are considering bankruptcy tend to be most interested in the kinds of debt they will be able to discharge. Typically, filing allows you to eliminate credit card debt, past due utility bills, medical bills, gym contracts, and personal loans. Once you begin the proceedings, it can also stop wage garnishment and other collection actions at least temporarily. Additionally, Chapter 13 may allow you to stop a mortgage foreclosure as long as you can catch up on any missed payments. 

What Bankruptcy Cannot Do

Despite the many ways bankruptcy can seemingly help those in dire financial straits, filing has its limitations. For example, there are certain kinds of debt you cannot discharge, including child support payments, alimony obligations, most student loans, most tax debts, and criminal fines. Additionally, Chapter 7 may be unable to protect all your property. Also known as liquidation bankruptcy, Chapter 7 requires the debtor to sell nonexempt assets, which might include vacation properties, newer vehicles, musical instruments, valuable collections, investments, and jewelry. 

 

If you’re thinking about filing for bankruptcy in Ohio, turn to Nancy V. Jacob. Located in Cincinnati, OH, this debt relief attorney has been helping clients regain their financial footing for nearly three decades. A member of the National Association of Consumer Bankruptcy Attorneys (NACBA), Nancy offers strategic guidance and experience without judgment. Visit her website to see what past clients have to say about the counsel she provides. To schedule an initial consultation, call (513) 921-1400.

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