Navigating 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

Not everyone qualifies for Chapter 7 bankruptcy. Under what’s referred to as the “means test,” your income must not exceed a certain threshold. If you don’t qualify, Chapter 13 may be an option. I can help you with this analysis.

If you do qualify for Chapter 7, you can expect to get rid of eligible debts within three to six months, generally speaking. It’s important to know that there are two types of debts for bankruptcy purposes:

• Unsecured debts are those that aren’t attached to property – for example, medical bills, credit card debt and payday loans.
• Secured debts are attached to a property. Examples include mortgages and vehicle loans.

Chapter 7 gets rid of eligible unsecured debts. I can advise you on which debts are eligible, and how best to address secured debts like car loans.

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.