Most people think of bankruptcy only as a form of debt relief. While it's true that filing for bankruptcy can eliminate debt and help you overcome many of your financial challenges, it brings with it the added benefit of providing different kinds of legal protection. Filing for personal bankruptcy immediately stops creditor harassment and prevents many of your assets from being taken from you without a fair assessment.
Direct Air, an airline based in Myrtle Beach, South Carolina, filed for a corporate bankruptcy case. The trustee of the case is involved in a lawsuit which seeks to recover over half a million dollars that Direct Air paid to one of its founders. Unfortunately, the founder in question only has about $200,000 assets to his name and is claiming debt in excess of $26 million. Faced with this massive disparity, and knowing he could not afford to pay a half million to Direct Air, the man filed for personal bankruptcy to manage his debt and protect him from the lawsuit.
This is just one of many ways that a personal bankruptcy filing can give you some peace of mind and get you back on your feet financially. Bankruptcy laws may differ from state to state, but in Ohio a bankruptcy filing will stop creditor harassment of all kinds and allow you to discharge some of your debts while keeping many of your assets such as your car or bank accounts. Bankruptcy can also stop foreclosure proceedings on your home.
The Ohio legal protection offered by bankruptcy is often overlooked or overshadowed by the overwhelming debt you might be facing. The idea of filing for bankruptcy may seem off-putting, and maybe you think you can find another way to manage your debt. However, bankruptcy is about more than just debt relief. It's about peace of mind.
Source: WBTW.com, "Direct Air founder files for personal bankruptcy," April 19, 2014