Columbus Chapter 7 Bankruptcy Lawyers

Financial hardship can occur in an instant, only to significantly affect your life for years down the road. For many individuals, significant debt can seem insurmountable and impossible to pay off. Fortunately, you do have options, and our legal team is here to help. If you’re considering filing for Chapter 7 bankruptcy, please don’t hesitate to contact the skilled Columbus bankruptcy lawyers here at Cousino & Weinzimmer LLC for comprehensive representation through each step of the process. We are here to help you get the peace of mind you deserve.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is a legal process designed to help individuals eliminate overwhelming debt and achieve a fresh financial start. Unlike Chapter 13 bankruptcy, which requires a structured repayment plan, Chapter 7 allows eligible filers to discharge most unsecured debts without the obligation to repay creditors. This form of bankruptcy is particularly beneficial for individuals facing significant credit card debt, medical bills, or personal loans with no feasible way to pay them back.

While certain assets may be liquidated to satisfy creditors, Ohio offers generous exemptions that help many filers retain essential property. By filing for Chapter 7, you can stop creditor harassment, wage garnishments, and collection lawsuits, providing a clear path toward financial stability.

Who Qualifies for Chapter 7 Bankruptcy in Ohio?

Not everyone qualifies for Chapter 7 bankruptcy. To be eligible, individuals must pass the means test, which compares their income to the median income of a similar household in Ohio. If your income falls below the state median, you automatically qualify. However, if your income exceeds the median, additional calculations will determine whether you have enough disposable income to repay a portion of your debts through a repayment plan. Other eligibility criteria include:

• You have not received a Chapter 7 discharge within the past eight years or a Chapter 13 discharge within the past six years.
• You have completed a required credit counseling course from an approved provider within 180 days before filing.
• You are not engaging in fraudulent activity that would disqualify you from receiving a discharge.

Our attorneys can help assess your eligibility and explore all available options to determine whether Chapter 7 is the right choice for you.

Dischargeable Vs. Non-Dischargeable Debt in Chapter 7

One of the primary benefits of Chapter 7 bankruptcy is the discharge of unsecured debts, meaning you are no longer legally responsible for repaying them. However, not all debts can be eliminated through this process. Understanding the difference between dischargeable and non-dischargeable debt is crucial before filing.

Dischargeable Debts:

• Credit card debt
• Medical bills
• Personal loans
• Utility bills
• Certain tax debts (depending on the age and nature of the debt)
• Most lawsuit judgments

Non-Dischargeable Debts:

• Student loans (except in cases of extreme hardship)
• Child support and alimony
• Recent tax obligations
• Court-ordered fines or restitution
• Debts obtained through fraud

Our experienced legal team can analyze your financial situation to determine which debts may be discharged and strategize the best course of action to minimize your financial burdens.

What Assets Are Exempt?

Ohio bankruptcy laws provide exemptions that allow filers to protect essential assets from liquidation. These exemptions ensure that individuals are not left destitute and can maintain a basic standard of living. Common Ohio Chapter 7 exemptions include the following:

• Homestead Exemption: Protects up to $182,625 of equity in your primary residence.
• Motor Vehicle Exemption: Allows you to keep up to $5,025 in vehicle equity.
• Personal Property Exemption: Covers household goods, clothing, and furniture up to $800 per item, with a total cap of $16,850.
• Wildcard Exemption: Provides an additional $1,675 to protect any asset of your choice.
• Retirement Accounts: Most qualified retirement accounts, such as 401(k)s and IRAs, are fully exempt.

By leveraging these exemptions, many individuals filing for Chapter 7 bankruptcy in Ohio are able to retain most, if not all, of their property.

The Chapter 7 Bankruptcy Process

Filing for Chapter 7 bankruptcy involves several key steps, and having an experienced attorney by your side ensures that the process is handled correctly and efficiently. Here is an overview of what to expect:

• Credit Counseling Requirement: Before filing, you must complete a credit counseling course from an approved provider within 180 days.
• Filing the Petition: Your attorney will prepare and file your bankruptcy petition, schedules, and financial statements with the U.S. Bankruptcy Court.
• Automatic Stay: Once filed, an automatic stay goes into effect, halting creditor harassment, wage garnishments, and collection efforts.
• Trustee Assignment & Meeting of Creditors: A bankruptcy trustee is assigned to review your case. You must attend a 341 Meeting of Creditors, where the trustee and creditors may ask questions about your finances.
• Non-Exempt Asset Liquidation (if applicable): If you own non-exempt assets, the trustee may liquidate them to repay creditors. However, most Chapter 7 cases are no-asset cases, meaning no property is sold.
• Financial Management Course: Before your debts are discharged, you must complete a debtor education course.
• Debt Discharge: Typically, within 3-6 months of filing, the court will issue a discharge order, eliminating qualifying debts and giving you a fresh financial start.

With proper legal guidance, Chapter 7 bankruptcy can be a straightforward and highly effective solution to overwhelming debt.

Contact Our Franklin County Chapter 7 Bankruptcy Lawyers Today

Don’t go through the Chapter 7 bankruptcy process alone. The legal team here at Cousino & Weinzimmer LLC has effectively represented countless clients facing financial difficulties here in Ohio for years, and we stand ready to do the same for you. Contact our Columbus Chapter 7 bankruptcy lawyers today so we can get started working on your case and guiding you to your safe harbor.