What is Chapter 7?
Chapter 7 discharges most debt. 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.”
How Do you file?
A Chapter 7 bankruptcy case begins when a debtor files a petition in bankruptcy court where he or she lives. Within this petition and associated forms, the individual 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 debtor’s income; a list of all the debtor’s property; and a detailed list of the debtor’s monthly expenses. Filing this petition automatically stops most collection actions against the individual and his or her property.
What Debts are not Discharged in a Bankruptcy?
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.
Who has the right to File a Bankruptcy?
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.