Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is a good choice if you have large amounts of debt.  Filing bankruptcy is very personal.  We understand your fears and will help you through the process.  Our attorneys will help you decide if Chapter 13 or Chapter 7 Bankruptcy is right for you.  We understand the harm that can come from seeking other debt relief options.  Making an informed decision is critical to your financial future.  Contact a Chapter 7 Bankruptcy attorney to find out if bankruptcy is the right choice for you.

Chapter 7 Bankruptcy is generally a quick and low cost way to get out of debt.  Most debts, like credit card debt and medical bills, are discharged.  Most student loans and taxes are not discharged.  Alimony and child support obligations are not dischargeable either.  The benefit is you quickly reduce your debt and improve your budget.

The Means Test

Chapter 7 Bankruptcy is available to businesses and consumers.  The Means Test applies to consumers but not businesses.  The Means Test is based on household size and income.  The goal of the Means Test is to restrict Chapter 7 Bankruptcy to those with low incomes.  If your income is high then Chapter 13 Bankruptcy may be your option.

The Means Test is not a one size fits all test.  There are two steps.  The first step just compares income to the Means Test limit.  If you are under the limit you pass.  If you are over the limit you then go to step two.  In step two you look at deductions and costs of living.  The goal of step two is to find out if you could make a meaningful Chapter 13 plan payment to your creditors.  Many people fail step one but pass step two and can still file Chapter 7 Bankruptcy.

Keeping Your Property

You often keep most if not all of your property.  The Ohio exemptions are fairly generous.  They allow you to protect your property from the claims of the trustee and creditors.  They apply to your house and your car.  They apply to almost all of your property with some limitations.

The Bankruptcy Code is not written to strip you of all of your property.  Its goal is to eliminate most of your debt and give you a fresh start.  The exemptions allow you to keep property you need to regain a productive life.

Contact us at 740-369-6812 or by email to find out if Chapter 7 Bankruptcy is right for you.