The burdens of debt can place a significant amount of financial weight on an individual. Those in Ohio and elsewhere that experience similar hardships may find it beneficial to know that relief is available. However, when exploring the options for debt relief, one may want to proceed with caution, as certain outlets could be less helpful than they seem, and bankruptcy might be a much better alternative.
When searching through the available options, one might overlook bankruptcy, perhaps believing that repaying debts, even if only partially, is a better choice. This could lead some to consider a settlement, which might seem enticing at first, but may actually prove more harmful than helpful. Even if a person comes to an agreement concerning debt settlement, the process can still take years, and since interest may continue to accrue during this period, the total amount required to complete a settlement could be nearly as much as the original balance.
In addition, a settlement agreement may do little to stop collection attempts, whereas a bankruptcy can provide an individual with protection against creditors. Some may also have concerns about the impact a bankruptcy will have on credit, but the alternative could be just as detrimental. With bankruptcy, an individual may be able to begin rebuilding this area of life shortly after filing, which could help him or her begin moving toward a healthier financial future.
With numerous available options, and the potential gravity of the outcome of each in turn, one may find it beneficial to seek guidance from someone with extensive knowledge in the area. By speaking with a bankruptcy attorney, a client in Ohio could obtain guidance on making informed decisions regarding his or her financial future. An attorney can address a clients concerns and wishes and provide advice on how to pursue the best possible outcome through the necessary outlets.
Source: dailyherald.com, "Why debt settlement is still a bad alternative to bankruptcy", Liz Weston, Sept. 3, 2017