According to the U.S. Bankruptcy Code, Chapter 7 bankruptcy will, in most cases, discharge an individual’s debt. In fact, it is estimated that a discharge of debt is received in 99 percent of Chapter 7 bankruptcy cases. This form of bankruptcy is often referred to as “straight bankruptcy” or a “fresh start.”
A Chapter 7 bankruptcy case begins when you file a petition in bankruptcy court where you live. Within this petition and associated forms, you will be asked to provide a list of all creditors and the amount and nature of their claims; the source, amount and frequency of the your income; a list of all of your property; and a detailed list of your monthly expenses. Filing this petition automatically stops most collection actions against the individual and his or her property.
Not all debts are eligible for discharge. Some of the debts that can’t be discharged in a Chapter 7 bankruptcy case include child support or alimony, certain taxes, educational benefits such as government-issued student loans and debts due to personal injury or wrongful death claims against the debtor. Chapter 7 bankruptcy is a good option for those with unsecured debts such as credit card debts or medical bills.
Troy, Ohio Bankruptcy Attorney, Chris Wesner, has heard many locals state that they don’t feel that they have the right to file for bankruptcy. Bankruptcy is your right, however, set forth in the Constitution. While it is certainly not an action to be taken lightly, you can file for bankruptcy discreetly and in order to have a fresh start just as many, many other people — including famous athletes and corporations have done. For more information on whether Chapter 7 is right for you, contact us.