If you are thinking about filing for bankruptcy, it would help you to understand what a Chapter 7 bankruptcy is all about. This is a general overview of a Chapter 7 bankruptcy, for you to become familiar with the basics . A Troy, Ohio Bankruptcy Attorney can give you more detail, if you reside in the Troy-Dayton area, and maybe this overview will help bring questions to mind that only an experienced bankruptcy attorney can answer. Bankruptcy laws are very complex, but here are some general facts written in understandable terms. This information in no way replaces any information or advice you may receive from your attorney.
Some of the eligibility requirements that must be met in order to file a Chapter 7 are:
- You cannot have filed a Chapter 7 bankruptcy that received a discharge less than EIGHT years prior.
- You cannot have filed a Chapter 13 bankruptcy that received a discharge less than SIX years prior.
- Generally you cannot make over the state median income, but there are a few exceptions to this rule that your attorney can explain if relevant to your case.
- Payments must be current on your house and car if you wish to keep them.
- You cannot have more than $15,000 of equity in the home you live in if you wish to keep it.
- You cannot have more than $3000 of equity in your motor vehicles if you want to keep them.($6000 if married)
- When calculating your budget, you cannot have more than $100 left over each month after paying your monthly expenses.
If you can meet all of the above criteria, there is a good chance you are eligible to file a Chapter 7.
Most people filing a Chapter 7 never lose any property that they wish to keep. However, in some instances it may be better for some people to let their property go because the debt is exceedingly high.
You will have to list all of your assets and their current value and just because the property is listed, does not mean you will lose your property. There are exemptions that can be used to protect your property, and only an experienced bankruptcy attorney would know how to handle that. If you have property over and above what cannot be exempted, then the trustee who is appointed by the court will take that property, sell it, and distribute any proceeds from that sale to your various creditors. When you make that list of all assets, make sure you list EVERYTHING! Some people think if they want to keep their house or car, then they should not list it, but that isn’t true. If you have a house, then list it as an asset, and the mortgage as a debt. If you have a car, list it as an asset and the car loan as a debt. You list everything, and then you can decide what to keep later.
If you feel like a Chapter 7 bankruptcy is the right thing for you, you need to go to an experienced local attorney; one that is in your home town. If you are in the Troy or Dayton, Ohio area , I encourage you to contact us here at Chris Wesner Law Office. We are experienced, highly skilled, and local. We will discuss your options, and give you a clean slate so you can have a chance at a fresh start without the worry that comes with too much debt.