Chapter 7 Bankruptcy | Trotwood & Dayton

Helping Trotwood and Dayton Residents Find Relief Under Chapter 7 Bankruptcy

The terms “Chapter 7” and “Chapter 13” come from the Bankruptcy Code, which is intended to provide financial relief to individuals who have become consumed by debt. The difference between the two concerns the status of the bankrupt individual’s debts following a successful litigation. With a Chapter 7 bankruptcy filing, also known as “straight bankruptcy,” most types of unsecured debt are eliminated, including medical bills, credit card balances and personal loans. With a Chapter 13 bankruptcy filing, your unsecured debts are consolidated, and you have option of paying them back without accruing additional interest.

Advantages of Filing for Chapter 7 Bankruptcy

There are several reasons why people decide to file for Chapter 7 bankruptcy. If you do not have a great deal of property and find that you are having trouble affording necessities, such as food and clothes, you should ask your bankruptcy attorney if Chapter 7 could work for you. Chapter 7 bankruptcy litigation is usually a much faster and more streamlined process than that associated with Chapter 13. When you file for Chapter 7 bankruptcy, it usually takes only three to six months to complete. Once the process is completed, you’re free of debt (except for house payments, car payments, student loans, new taxes and child support balances). Most people also get to keep their property under a Chapter 7 filing, though you should discuss your particular situation with your bankruptcy attorney.

Eligibility Requirements for Chapter 7

Filing for Chapter 7 bankruptcy relief requires that you turn over all nonexempt property to a trustee. The trustee will then sell the property and use the proceeds to pay your creditors. Once the court filing fees are paid, a bankruptcy judge will discharge your debts — assuming, of course, that you’re eligible. Eligibility depends on a number of factors, including whether or not you have:

  • Filed for Chapter 7 bankruptcy relief within the past eight years;
  • Filed for Chapter 13 bankruptcy relief within the past four years;
  • Engaged in misconduct and/or fraud concerning the details of your bankruptcy or financial situation;
  • Refused to comply with court orders related to your bankruptcy;
  • Refused to answer questions in court regarding your bankruptcy;
  • Failed the financial means test required for declaring bankruptcy.

Whether you are considering filing for bankruptcy or trying to decide between Chapter 7 and Chapter 13, it’s worth it to speak with a qualified bankruptcy attorney as soon as possible to assess your situation. Get in touch with Thomas D. Berry Attorney At Law today to get started.

Free Consultation

Contact us today if you feel Chapter 7 Bankruptcy may be right for you. We can guide you through the process, and consultations are free.

Thomas D. Berry Attorney at Law has committed his legal career to helping Trotwood and Dayton families find relief from financial distress. If you are currently considering filing for bankruptcy, call (937) 278-9333 to schedule your free consultation with a dedicated and understanding attorney today.