Your bankruptcy will probably start with questions and end with a clearer financial future. Do you need to file for Chapter 7 or Chapter 13? Do you have assets you could sell off before you begin the bankruptcy process? Have you paid debts that the court could reclaim during the procedure? These are some of the things you might want to ask yourself before you begin the bankruptcy process in Ohio.
Essentially, the first step of bankruptcy is developing a strategy. Your plan will probably include non-bankruptcy tactics to ensure the formal process will be as effective as possible in promoting the long-term stabilization of your finances. Here are some of the considerations you might make while taking your first steps.
How much money could you make going forward? If you are simply under pressure from high-interest loans, as is often the case in small-business financial problems, you may be able to work out a payment plan that allows you to use your revenue to manage your debts. On the other hand, if you have large amounts of debt and a smaller income stream, you may consider liquidation of assets.
If you did opt for liquidation, you may want to sell some of your assets yourself. Keep in mind that, during bankruptcy, the court would handle selling your property. It could be better to sell things yourself — Ohio liquidations may not get the same prices as you could get on the open market.
Your balances are important, but the type of debt you have may be more important than how much you owe. The difference between secured debts, such as mortgages, and unsecured debts, such as credit card loans, becomes much more pronounced when you start to consider bankruptcy.
Regardless of your situation, a personalized strategy is probably the key to success. Once you know the amount and type of debt you have, you should be able to move forward with the first official steps of bankruptcy. This is not intended as legal advice. Please only think of it as general information.