Wipe The Slate Clean: Stop Creditor Harassment With Chapter 7 Bankruptcy

Named after its location in the federal Bankruptcy Code, Chapter 7 is one of the most common types of consumer bankruptcy. It’s also typically the fastest and easiest way to get out from under significant unsecured debt.

At Borders Law, LLC, I, attorney Keith Borders, help people navigate all aspects of the Chapter 7 bankruptcy process. I have extensive experience in this area, having handled thousands of bankruptcy cases. When you work with my firm, you’re getting the benefit of my vast experience and knowledge. You will also get one-on-one attention and the peace of mind that comes with knowing you’re in good hands.

What To Know About Chapter 7

When you need an immediate financial reset, Chapter 7 bankruptcy can be a viable option. Often called “liquidation,” this process allows you to: 

• Pass the “means test” to qualify: We analyze your income and expenses against the state median to determine your eligibility for debt liquidation.
• Discharge unsecured debt: This includes eliminating liability for credit card statements, medical bills and past-due utility bills.
• Halt creditor actions: Filing immediately stops or pauses collection actions, repossession and foreclosure proceedings.
• Protect essential property: Most filers utilize exemptions to keep their home, car and necessary personal belongings.
• Achieve a resolution: The entire process is typically completed within four to six months

If you plan to file for Chapter 7 bankruptcy, Borders Law, LLC is here to guide you through every step of the process.

Addressing Your Fear Of Loss On Asset Liquidation

You might be hesitating to seek financial relief because you fear this means losing everything. In reality, the law helps you restart and strive to not leave you with nothing.

In Chapter 7, the courts will appoint a trustee who oversees your estate. To help you settle your debts, they assess your belongings to determine two things:

• Exempt assets: These include clothing, furniture, retirement accounts and a certain value of your vehicle.

• Nonexempt assets: These include expensive jewelry, art collections, vacation properties and stocks.

Exempt assets stay with you when filing a Chapter 7, but a trustee will have to sell your nonexempt items to pay off your creditors.

Breaking Down The Means Test

Chapter 7 bankruptcy can be accessible if you pass the means test. The court uses this to determine if you truly lack the disposable income to pay back your creditors. To give you an idea, the process follows these steps:

• Reviewing your income: If your gross income is below the median income for a household of your size in Ohio, you pass.
• Calculating disposable income: If your income is above the median, the test calculates if you have enough means to fund a Chapter 13 repayment plan instead.

We understand that there are various factors to consider before filing for bankruptcy. Our team can help you determine the path that best fits your current situation.

Answers To Common Questions About Chapter 7 Bankruptcy

Since pursuing a Chapter 7 bankruptcy can be more complex than many anticipate, having the right information can make the process substantially smoother. Below, I have addressed some of the most frequently asked questions about Chapter 7 to provide clarity about the process and its implications.

How do I file for Chapter 7 bankruptcy in Ohio?

Before you can file for Chapter 7, you must complete a means test, which examines your financial situation in depth, to determine your eligibility. If your income is below the state median, you can proceed with the process.

You will need to gather financial documents, complete mandatory credit counseling and file a petition with the bankruptcy court. This step involves submitting details about your income, expenses, assets and debts. After filing, you must attend a meeting of creditors (341 meeting) and will need to complete a debtor education course before your debts are discharged.

What happens to my assets during Chapter 7 bankruptcy?

During a Chapter 7 bankruptcy, a court-appointed trustee reviews your assets. Non-exempt assets may be sold to repay creditors, but many assets are protected under Ohio’s exemption laws. Exempt property typically includes essential items like your home, car and personal belongings, up to certain value limits.

If you have non-exempt assets, they will be liquidated to settle debts.

How will Chapter 7 bankruptcy affect my credit score?

You can expect a Chapter 7 bankruptcy filing to significantly impact your credit score, often reducing it by 200 points or more. Additionally, the bankruptcy will remain on your credit report for 10 years.

Many individuals begin improving their credit soon after filing by adopting responsible financial habits, managing any new credit wisely and monitoring credit reports regularly to track progress.

What exemptions are available for Chapter 7 bankruptcy?

Ohio offers specific exemptions to protect certain assets during bankruptcy. Examples include a homestead exemption of up to $161,375 for your primary residence, a $4,450 exemption for motor vehicles and a $1,475 wildcard exemption for other personal property.

I can help you explore other possible exemptions to safeguard household goods, clothing, public benefits (Social Security, etc.), retirement accounts and any trade tools necessary for employment.

Get More Answers To Your Chapter 7 Bankruptcy Questions During A Free Consultation

Don’t stay stuck under the burden of tremendous debt. Learn more about whether Chapter 7 can benefit you. Reach out to my firm by phone at 216-435-5668 or through the online contact form. I have multiple offices in Cleveland, affordable fees, and I can handle bankruptcy cases virtually, over the phone or via video.

My firm is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.