Creditors have rights when it comes to people who borrow money from them and don’t repay it. Mortgage lenders can petition the court to foreclose on property and credit card companies can file lawsuits against their customers to have their wages garnished. These collection actions are severe and are typically only done after the creditor has exhausted all other means of attempting to collect the money owed to them. However, they can lead to even more hardship for a family that is unable to pay their debts on time. Bankruptcy in Cincinnati, OH offers a solution to this problem and could put individuals on a level playing field with large corporations.
The only way to stop a garnishment is to pay off the debt or file for bankruptcy protection. Few people who have been successfully sued and are having their wages garnished can afford to pay off the debt. This is why filing for bankruptcy in Cincinnati, OH is a good option for someone in this predicament. One of the benefits of bankruptcy is that it immediately stops collection actions, such as garnishments and foreclosure. It may even result in some of the money that was seized being returned to the employee.
Foreclosure can be stopped through bankruptcy as well. In some cases, bankruptcy can help a family keep their home but restructuring the payments and paying the past due amounts over an extended period of time. However, for those that can’t afford to keep the home, filing for bankruptcy protection might give them time to plan their next steps. If the family has equity in the home, they may have an opportunity to sell it in order to avoid foreclosure. A lender might also approve a short sale for the property.
Filing bankruptcy is a big step, but the decision can be much easier to make when a person is facing wage garnishment or foreclosure. Click here for more information and to get in touch with an attorney who may be able to file the necessary documents to get collection actions stopped within a couple of days. The costs of filing for bankruptcy protection might be surprisingly less than the ongoing costs of a wage garnishment.