Chapter 7 Bankruptcy

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy Introduction

The most important things to know about Chapter 7 Bankruptcy are:

  1. you immediately get protection from creditor protection action including lawsuits, wage garnishments, foreclosure sales, and collection calls;
  2. Ohio law provides substantial protection to your car, your house, your retirement plans, your wages and your cash;
  3. you never have to file for bankruptcy just because you come in to ask me about it.  When you come to meet with me, all that happens is that we talk and work together to understand what is happening and what we can do about it.

You will read in the academic materials that follow that Chapter 7 is a “liquidating” bankruptcy. Most people who file for Chapter 7 bankruptcy do not give up any assets. And, most importantly, nothing happens that you do not know about in advance. Fortunately, the Bankruptcy Code is a clear set of rules. In most cases, I can tell you the first day we talk whether you qualify for a discharge, and the extent your assets are protected.  Almost daily I am able to say “Nothing about filing for Bankruptcy will cause you to lose your house or your car.” I often have to say that several time because people are so afraid, they almost cannot hear me.

This highlights the purpose of the confidential meeting with me so that I can understand your facts, all your facts, and your concerns. As long as I fully understand all of your facts, I can tell you exactly what will happen in your case. And if there is a “gray area”, I will alert you to that, and let you know the best and the worst potential outcome.

The only important thing about the law is how it applies to you. That is what we can figure out together.

Chapter 7 Bankruptcy: What it is, How it Works, and Why You Need an Experienced Chapter 7 Bankruptcy Attorney on Your Side!

What is Chapter 7 Bankruptcy? Do I Qualify for This Type of Debt Relief?

Chapter 7, also commonly called a liquidation bankruptcy, is a type of bankruptcy which can provide much needed debt relief, give you a fresh financial start in the future, and allow you some breathing room to figure out your financial situation and get your debts under control.

Bankruptcy is a complex and difficult legal specialty, with numerous rules, regulations, and requirements that must be met and strict deadlines which must be followed. A Cleveland chapter 7 bankruptcy attorney is critical to ensure that you get the best possible results and the desired outcome for your case and your financial future.

Unlike a chapter 13 bankruptcy, frequently called a wage earner bankruptcy, you do not have to have a regular income to qualify for a chapter 7 case. Secured debts, such as auto loans and mortgages, can be handled by turning over the property which acts as security for the debt. Any remaining balance owed after the properly is sold can be discharged at the end of the chapter 7 bankruptcy case.

Unsecured debt, including credit cards, medical bills, and certain loans without security, will be discharged at the end of the bankruptcy case. Assets which are not exempt are turned over to the bankruptcy trustee to be liquidated and the proceeds are used to pay off creditors.

An affordable chapter 7 bankruptcy lawyer in Akron, Ohio and Cleveland, Ohio can help you determine whether a chapter 7 case is best for you and your situation or whether a different bankruptcy chapter or other debt relief method may be a better choice.

Can I Keep Real Estate or Vehicles if I File for a Cleveland Chapter 7 Bankruptcy?

One of the biggest concerns for many consumers who file for a chapter 7 bankruptcy is that they will lose their home or their vehicle. You need somewhere to live, and it is almost impossible today to work and provide without a car. The good news is that the bankruptcy trustee can only use non-exempt property for liquidation.

The bankruptcy law allows certain exemptions for specific property types and equity amounts. There is more than one way to determine how much property can be protected, and the bankruptcy laws allow for various other exemptions as well. The right Akron chapter 7 bankruptcy attorney will work with you to protect the maximum amount of property and equity possible.

Many debtors who file for chapter 7 do not lose any property at all!

Will an Akron Chapter 7 Bankruptcy Discharge All of My Debts?

While credit cards and medical debt are both dischargeable with a chapter 7 bankruptcy in Akron, Ohio, some debt types can not be discharged using bankruptcy. These typically include but are not limited to:

Nondischargeable

  • Child support
  • Spousal support
  • Almost all student loan debt
  • Most personal injury debt

Can A Chapter 7 Bankruptcy Attorney Stop Foreclosure and Repossession?

Chapter 7 bankruptcy includes a very powerful tool called the automatic stay, which forces all of your creditors to halt any collection activities until the bankruptcy court can review all of your debts and financial factors. The automatic stay will stop:

dischargeable

  • Wage garnishment
  • Bank levies
  • Lawsuits to collect judgments
  • Repossession
  • Foreclosure

The automatic stay is not permanent but it gives you some breathing room and time to get your finances organized. All of your creditors will receive equal and fair treatment by the bankruptcy court.

Why do I Need a Chapter 7 Bankruptcy Lawyer? Can't I File Myself?

Even a small oversight, a simple mistake, or a missed deadline can be devastating to any chapter 7 bankruptcy. The bankruptcy code is complex and the process is extensive and complicated. A small mistake could cost you the chance at a fresh financial start, with your case being dismissed or even being banned from filing again for a certain period of time.

You need an experienced and knowledgeable, affordable chapter 7 bankruptcy lawyer in Cleveland, Ohio on your side if you want the best possible results. This legal professional has vast experience with the local courts, the code requirements, and the complexities that bankruptcy involves. A bankruptcy lawyer will also help enforce any discharge that you get if your creditors try to get around it.

Chapter 7 Bankruptcy Vs Chapter 13 Bankruptcy: What is the Difference?

  • Chapter 7 bankruptcy is designed for people with little or no income who can not possibly repay most or all all of the debt that they owe. This is why chapter 7 is usually called a liquidation bankruptcy.
  • Chapter 13 bankruptcy is intended for a wage earner who can pay back a significant portion of their debt over an extended period of time, and who need to reorganize their finances.

Is Chapter 7 the Right Bankruptcy Type for Me?

A Cleveland chapter 7 bankruptcy may or may not be the best choice, depending on your specific income, debts, goals, and financial situation. You need a chapter 7 bankruptcy lawyer who has years of experience, and is extremely knowledgeable about all aspects of the bankruptcy code and process, someone like Susan M. Gray who will fight to get you the fresh financial start that you want and deserve.

Sources:

“Chapter 7 Bankruptcy”. Borowitzclark.com https://www.borowitzclark.com/practice-areas/chapter-7-bankruptcy/  . Accessed 7/17/2020.

Carla Fried “Bankruptcy: Chapter 7 vs Chapter 13.” Experien.com https://www.experian.com/blogs/ask-experian/bankruptcy-chapter-7-vs-chapter-13/ . Accessed 7/17/2020.