How can bankruptcy help me to achieve a fresh start?
Columbus Blue Jackets defenseman Jack Johnson recently reached a bankruptcy settlement in court that will allow him to move away from the financial crisis that led him to file for bankruptcy. Johnson filed for bankruptcy in 2014, stating that his finances deteriorated under his parents’ management. Apparently, Johnson’s parents had financial power of attorney over the 29-year old’s finances and they borrowed large amounts of money at high-interest rates. This left the otherwise successful NHL player struggling to cope with his debts.
Under the settlement, Johnson will be required to turn over the majority of his $5 million salary over two seasons. He will be left with $246,000 for living expenses this season and next. Johnson has also already liquidated two homes and a Ferrari. The settlement will satisfy six of Johnson’s eight creditors, and the remaining two are seeking an agreement. While Johnson will be affected by the settlement, he can now move forward with a fresh financial start.
Your Fresh Financial Start with Bankruptcy
Bankruptcy laws were passed with the aim of providing individuals and businesses with a fresh start. If you are drowning in debt and unable to repay the money you owe, you may wish to consider the option of filing for bankruptcy. Your first step is to consult with a Miami Valley, Ohio Chapter 7 bankruptcy attorney. Your attorney will consider your debts, income, and other important factors to determine if you are a viable candidate for a Chapter 7 or Chapter 13 bankruptcy.
For those eligible to file for Chapter 7 bankruptcy, this legal proceeding can provide you with the fresh start you need to regain control over your finances. Under a Chapter 7 bankruptcy, all of your unsecured debts, which includes most credit card and medical debts, will be eliminated. With these debts gone, you can start rebuilding your credit as soon as the bankruptcy ends. Many people are able to achieve good credit in about two years.
Declaring bankruptcy is never an easy decision, but it is one you should consider if your debts are negatively impacting your life and future. Consult with an Ohio bankruptcy attorney as soon as possible to explore your legal rights and options.