Chapter 7 Bankruptcy is a legal way to end your legal obligations to pay your debts that qualify for discharge.  The Bankruptcy Code is divided into chapters.  The chapters that usually apply to consumers are Chapter 7, where most or all of your qualifying debt is wiped out, and Chapter 13, which involves a repayment plan. The bankruptcy lawyers at Betras, Kopp & Harshman can help you decide which option is best for you.  In most cases, once you file your case, an “Automatic Stay” immediately goes into effect. The Automatic Stay means that a bankruptcy filing automatically stops, or stays, and brings to a halt most lawsuits, repossessions, foreclosures, evictions, garnishments, attachments, utility shut-offs, and debt collection harassment. Generally, creditors' lawyers cannot take any further action against you or your property without permission from the Bankruptcy Court.  Hiring a debt lawyer can help you assert your right to an automatic stay immediately upon filing your bankruptcy petition.

 

Chapter 7 Bankruptcy

 

Chapter 7 is designed for people who are having financial difficulties and are not able to repay their debts. Under changes to the Bankruptcy Code that took effect October 17, 2005, you can usually qualify for a Chapter 7 if your average gross monthly income for the last six months is below your state’s Median Income, your gross income less certain expenses is below your state’s Median Income, or you can show “special circumstances” that would allow you to qualify for Chapter 7. The filing fee for a Chapter 7 is $306.00.  A debt relief lawyer can help you determine if you qualify. 

 

Under Chapter 7, your debt relief lawyer can advise you that can usually exempt, or keep, most or all of your assets under either Federal or Ohio Law or, if you have not lived in Ohio for the past two years, under the state’s exemption law that applies to your case. Most retirement accounts and pensions are also exempt in whole or in part. Secured property, normally your car and house, may not have any net equity, in which case you can keep them as well. A Bankruptcy Trustee will liquidate most non-exempt property and use the proceeds to pay your creditors according to priorities set forth in the Bankruptcy Code.

 

Once your Chapter 7 case is over, you receive a Discharge. Your lawyer should send you a copy although you will receive a copy in the mail from the bankruptcy court.  The discharge prevents your creditors' lawyers from taking any steps to try to collect their unsecured debt. Creditors' lawyers may not call you, write you, sue you, or take any steps that could be considered an attempt to collect  debt. If you want to keep property that has a lien on it, you must keep your payments current and you may be required to reaffirm your debt. Some debts cannot be discharged. Typical examples are child support, alimony, and other domestic support obligations, some taxes, student loans, criminal restitution, and debts for death or personal injury caused by operating vehicles while intoxicated with alcohol or drugs.  The debt lawyers at Betras, Kopp & Harshman can help determine the debts that may not be subject to discharge.

 

To schedule a free initial consultation with Attorney Gary J. George, Jr. call 330-746-8484 or 800-457-2889 or use the contact form on this page.