Despite the fact that the majority of Americans are in some sort of debt, talking about this topic is generally considered taboo. However, it’s imperative to understand that there are several relief options available to help you regain control of your finances. One such option you may want to consider is pursuing Chapter 7 bankruptcy. Unfortunately, many assume that bankruptcy is as simple as filing and waiting for the erasure of your debt. However, this is far from the truth. The following blog explores what happens during this process and why connecting with Columbus Chapter 7 bankruptcy lawyers is in your best interest during these complicated matters.
What Happens During Chapter 7 Bankruptcy?
Chapter 7 is a bankruptcy option that utilizes the liquidation of assets to repay creditors. When you file for Chapter 7 bankruptcy, a trustee will be appointed to your case by the bankruptcy court to ensure you adhere to the rules of this process. This person is responsible for managing your assets and collecting payments during your case.
As such, any non-exempt property you own can be seized and sold by the creditor, who will then distribute the funds to your creditors. Non-exempt property often includes jewelry, collections, non-retirement investments, cash, and antiques. However, you may be able to apply federal and state exemptions to certain assets to help protect them from being seized during this process.
You should also note that you must qualify for Chapter 7 before you can pursue this option. As such, you must pass the “means test.” Essentially, this compares your average annual income to other households of the same size in Ohio. If you are above the median income, you will have too much disposable income to qualify. However, if you pass the means test, you may pursue this option.
Once your non-exempt assets have been liquidated to repay creditors, you can have the remaining eligible debts discharged, meaning you are no longer legally liable for making payments.
How Do I File?
First and foremost, if you wish to file for Chapter 7 bankruptcy, you must first complete an approved credit counseling course. This is a requirement for all bankruptcy filings, as it allows filers to first explore other debt options. It’s imperative to note that you do not need to pursue other options – you must simply submit the certificate of course completion when filing.
Once you complete the necessary credit counseling course, you can complete the files to formally declare bankruptcy. Because these documents can be incredibly complicated, as you’ll need to accurately list all income, liabilities, assets, exemptions, and transactions, it’s in your best interest to connect with an experienced attorney. Unfortunately, failure to complete these forms can result in delays or even the dismissal of your case. Additionally, if you make errors, the court may determine that you were attempting to defraud the court by hiding assets, even if it was a genuine mistake. As such, your case can be dismissed, and you will not receive any relief.
Because bankruptcy is an overwhelming process, it’s strongly recommended to connect with an experienced attorney during these difficult matters. At Cusino & Weinzimmer LLC, we understand that debt can take a toll on your life. That is why our firm is dedicated to guiding you through these matters. When you are ready to achieve financial relief, contact us today to learn how we can fight for you.
