You’re in way over your head with debt. Now, you’re thinking about filing for bankruptcy. You know that there are pros and cons to filing for Chapter 7 in Ohio, but you aren’t sure what they are. Find out how filing for Chapter 7 bankruptcy can help you, some of the drawbacks of Chapter 7, and how an attorney can assist you at this time.
How Chapter 7 Bankruptcy Can Help You
When you file for Chapter 7 bankruptcy, most of your unsecured debts will be discharged. Unsecured debts include credit cards, personal loans, and medical bills. You can file Chapter 7 as an individual or a business, and there is no limit amount for filing.
If your creditors are going after you with phone calls, lawsuits, or wage garnishments, they will no longer be able to once you file for Chapter 7. While a bankruptcy reporting will stay on your credit report for up to 10 years, it will fall off after that. Additionally, it can lead to a rise in your credit score over time and get you back on track.
Thankfully, there are a number of items that are exempt from being taken away during your Chapter 7 bankruptcy filing. This includes your primary home and vehicle, personal items you use every day, like your clothing, your retirement accounts, pensions, household goods, and 401(k) plans.
The Drawbacks of Chapter 7 Bankruptcy
Of course, there are cons to filing for Chapter 7 bankruptcy. You will have that bankruptcy on your credit report for up to a decade, making it harder to qualify for loans and credit cards. Also, your dischargeable debts do not include student loans – those are almost impossible to discharge. You will also not be able to discharge child support or alimony payments or tax liens.
While you will get to keep most of your property, your appointed trustee will sell off your nonexempt items to pay off your creditors. This includes luxury goods, a second property, a second car you don’t need, investments that aren’t in a retirement account, valuable artwork, high-end clothing, and jewelry.
Filing for Chapter 7 Bankruptcy in Ohio
First, contact a bankruptcy attorney for help with filing for Chapter 7 in Ohio. They will guide you on how to do the paperwork, let you know the filing fees, file the paperwork for you, and help you protect your property. You will need to fill out the forms and pay the fees – in Ohio, it will cost you $338, but you might qualify for a fee waiver if you cannot afford that. Note that you’ll be required to go to a credit counseling course so that after the bankruptcy, you’ll know how to get back on track.
You’ll also have to provide financial documents like your pay stubs, tax returns, life insurance policy, retirement accounts, lawsuits, child support, etc. You need to be 100% transparent – if you lie about anything or attempt to hide assets, you might not be able to have your debts discharged or be able to file for bankruptcy in the future. You could face criminal bankruptcy fraud charges as well.
You can avoid any issues and be on the road to credit success with the help of an experienced bankruptcy attorney like Richard P. Arthur.
Get in Touch With Richard P. Arthur
Richard P. Arthur, Attorney at Law, can help you file for Chapter 7 bankruptcy in Ohio. You can call 937-254-3738 for a consultation. He has more than three decades of experience helping clients in Dayton and Trotwood, as well as Montgomery, Greene, Miami, Clark, and Warren counties.