Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is a type of Bankruptcy which allows you to eliminate most forms of unsecured debts. These debts include, credit cards, utility bills, medical bill and personal loans. In most cases, you can keep assets like your home, your car and all of your personal property. The State of Ohio provides individuals with exemptions on almost all of your property, to a limit. It is important that you contact an Attorney to discuss these exemptions.
What does a Chapter 7 do?
- Eliminates Credit Card Debts and other Unsecured Debts
- Stops Creditor Harassment
- Stops Creditors from filing lawsuits
Who Can File a Chapter 7?
Individual or couple:
If you have never filed a Chapter 7 Bankruptcy before, you are insolvent and if you meet the income requirements, you will be eligible to file a Chapter 7 Bankruptcy. If you have filed a previous Chapter 7 bankruptcy, you must wait 8 years between the date you filed the prior Bankruptcy to the new one. If you Filed a Chapter 13 Bankruptcy and received a discharge, you must wait 6 years from the date of filing the Chapter 13 to be eligible for a Chapter 7. It is important to consult an Attorney to make sure you are eligible.
A business is eligible to file a Chapter 7 Bankruptcy if it is insolvent. The main difference is that the business does not get a Discharge in a Chapter 7 Bankruptcy. Instead, the company can no longer operate. If you want to continue operating the business you may want to consider a Chapter 11. If you own a business and are considering Bankruptcy, call us now to discuss your options.
What Happens in a Chapter 7?
The process of a Chapter 7 Bankruptcy is very straightforward. The First Step is for the Debtor to met with an Attorney to determine that a Chapter 7 Bankruptcy is their best option. The next step is for the Debtor to take a Credit Counseling Course. This course is required by the bankruptcy code and can be done over the phone or the internet. A Debtor can not file a bankruptcy without taking the course first. Once a case is filed, the Debtor must attend a meeting of creditors. This meeting is at the Bankruptcy Court House, but not in the Court. At this meeting, a Chapter 7 Trustee will ask the Debtor a number of questions about their case. The Chapter 7 Trustee's job is to make sure the Bankruptcy Petition is complete and to determine whether or not the debtor owns any non-exempt property that he or she can sell. All proceeds the Trustee obtains will be used to pay the Debtor's Creditors. In many cases, there are no assets for the Trustee to sell and therefore the creditors get zero. This meeting on average takes about 10 to 15 minutes. The last step that a Debtor must do during the bankruptcy is to take a Financial Management Course. Just like the Credit Counseling Course, this can be done over the phone or internet. Once all these steps are completed the court will issue a discharge.
What it Costs.
The old saying "you get what you pay for" is true for bankruptcy. At Blomgren & Bobka Co., L.P.A. we pride ourselves on providing quality legal representation at a competitive price. We understand that money is tight and we will work with you to make the process as easy as possible. Because everyone has unique circumstances, we do not have a set rate for a bankruptcy. Some cases are more complicated than others so more time will be involved to prepare the bankruptcy. For us to evaluate your particular case, we offer a free consultation. After helping you understand your options, we'll be able to quote a price. No matter what your situation may be, we will provide the best service for your hard earned dollar.
Be Wary of Bankruptcy Mills.
When it comes to bankruptcy attorneys, you have many options. As with anything, some are good and some are not so good. The most important thing is for you to be comfortable with the attorney you choose. Don't just select an Attorney because he or she is the cheapest. Many times, that means cheap service! In bankruptcy, these are called bankruptcy mills. These are law firms, attorneys or petition preparers who will offer you a bankruptcy at a cut rate price but will only offer cut rate service. They sign you up at one flat rate but continue to increase that rate. Many times you'll meet with one attorney and never meet or talk to that person again. Every time you call you get someone new who doesn't even know your case. Worst of all, if a problem comes up, you may be the last person who knows. Remember, bankruptcy is a legal action that has legal consequences. You want it done right the first time. At Blomgren & Bobka, Co., L.P.A. our goal is to get it right the first time! You will have one attorney assigned to your case. If you call, you'll talk with that attorney. You will have the same attorney from start to finish. At Blomgren & Bobka Co., L.P.A. you are our client, not a number.