What is Chapter 7 Bankruptcy?
Chapter 7 bankrupcty is a liquidation, which allows you to completely eliminate almost all of your unsecured debts. This includes credit cards, medical bills, collections, payday loans, personal loans, car loans, mortgages and possibly taxes (if the returns were filed and the taxes are older than 3 years).
The only debts that are not dischargeable in a Chapter 7 are alimony and child support, student loans, and taxes (if they are for taxes owed from the past 3 years).
Chapter 7 Income Threshold
Contrary to popular belief you do can file for Chapter 7 if you have a job and make a good income. The threshold for a single person is $44,796.00. The chart below shows the threshold for filing Chapter 7 depending on how many people are in your household.
|Household Size||Threshold Income|
• Add $8,100.00 for each additional person
Will I Lose My Assets with Chapter 7 Bankruptcy?
Another common misconception is that you will lose all of your property (cars, house, household goods, etc.), which is not correct. The state of Ohio gives you exemptions to protect your property from collection. Most people are able to keep their personal items unless they are very valuable and have not liens or loans against them. This is one reason why it is important to hire a Bankruptcy Attorney when filing for Chapter 7.
Another great aspect of Chapter 7 is that you will be able to keep your retirement income even if you file. So many people deplete their retirement trying to get out of debt. Chapter 7 can help you rid yourself of debt without losing all of your retirement.
Finally, a Chapter 7 takes effect immediately upon filing. That means, no more phone calls, or collections. No one can sue you or garnish your wages. Everything stops the moment you file a Chapter 7 with our firm.
How Can I Get Started?
Chapter 7 is a program that allows you to obtain a fresh start. Most people are going through very stressful times when they file for Bankruptcy. Our goal is always to help you understand that Bankruptcy does not need to be a scary process. If you are having financial difficulties, please don’t hesitate to contact our office.