Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is often referred to as a liquidation bankruptcy.  It can be filed by both individuals (a consumer bankruptcy) and businesses.  

There are eligibility requirements to filing chapter 7 bankruptcy.  In general, if you have the ability to fund a chapter 13 repayment plan under the means test, you will be required to file a chapter 13 bankruptcy instead of a chapter 7.  If your monthly income is insufficient, after certain allowed expenses, to cover your debts, you will generally qualify to file a liquidation chapter 7 bankruptcy.

In a Chapter 7 Bankruptcy, a part of your non-exempt property may be sold to help pay down your debts.  In exchange, most, if not all, of your unsecured debt will be eliminated.  Federal and Ohio law provide for numerous exemptions which allow Chapter 7 bankruptcy filers to keep much of their property, including cars, clothing, household furnishings, jewelery, guns, etc.  While there are value limits on exemptions in chapter 7 bankruptcy, many people may find that most of what they own is exempt.

A debtor filing under chapter 7 has choices when it comes to secured debts (debts with collateral such as a car loan or home mortgage).  It most chapter 7 bankruptcy cases, the choice is whether to work to keep the collateral, or allow it to be returned to the creditor.  There are also other options which may reduce or eliminate the secured debt.

Contact my office at (614) 461-8080 to schedule an appointment to speak with a Columbus, Ohio bankruptcy attorney ready to assist you with a chapter 7 bankruptcy filing.