Chapter 7 Bankruptcy

Chapter 7 is the most common chapter than consumers file in Ohio. Roughly 75% of bankruptcies in Ohio are chapter 7s.

Chapter 7 is a great option for many people. If you are current on secured debts that you want to keep, if you are below the median income, or you do not have non-exempt equity in assets, chapter 7 might be right for you.

A chapter 7 does will not resolve issues if you are behind on a mortgage or car payment. A chapter 7 would buy you some time, but eventually the creditor can foreclose or repossess if you do not get caught up. This is not necessarily an issue though. You may want to surrender the home or car because it is too expensive for you to keep. The bankruptcy attorney at Conley Law has a network of dealerships that he works with in Ohio to get his clients into new vehicles. Many times clients are underwater on their vehicle, and it would be too expensive to keep it. That is why Conley Law works with the First Step Program through Ken Ganley to get our clients into new vehicles at a competitive payment.

The Ohio bankruptcy attorney regularly files motions to redeem to save our clients money on their existing cars. A redemption is where you take out a loan to pay off the current lien at the market rate of the vehicle. This has saved Conley Law client’s thousands of dollars on their cars. Conley Law works with 722 Redemption on these redemptions.

One of the first things any bankruptcy attorney looks at when analyzing whether you can file a chapter 7 bankruptcy is how your income compares to the median income for a household of your size in your state. These figures usually get updated twice a year and can be viewed here. All household income received in the six-months before filing needs to be included. This includes income from wages, businesses, spouses, side gigs, and more. If you are below the median income, you may qualify for a chapter 7.

If you are above the median income, then the means test is performed. The means test looks at your monthly income, subtracts your expenses, and compares your disposable income to a couple of numbers to see if you qualify for a chapter 7. If your income is still too high, there may be additional factors to consider that allows you to file a chapter 7. The Ohio bankruptcy attorney will review your situation to see if any additional factors work in your favor.

Chapter 7 is also known as a liquidation bankruptcy. If there are any non-exempt assets in a chapter 7, the Trustee can look to use those assets to repay your creditors.

This does not necessarily mean you will lose anything when you file. The Ohio bankruptcy attorney at Conley Law is well versed in the available exemptions to protect your assets. Ohio offers generous exemptions that can be applied to your assets. Most cases are no asset cases. This means that there are no assets for the Trustee to administer and use to pay your creditors.

If there is an issue, our Ohio bankruptcy attorney will review the situation with you before filing. Sometimes it will not make sense to file. It may also make sense to wait on filing. There is also an option to pay to keep the asset. For example, it is common with non-exempt equity in a car to be repaid to keep the car. This repayment can also be made on a payment plan.