What is Chapter 7 Bankruptcy?

A Fresh Start. . .

Chapter 7 is a form of debt relief by which you may eliminate most forms of unsecured debt such as credit cards, medical bills and personal loans. In most cases, you can keep your home, car and other personal belongings. Or a Chapter 13 is a debt repayment plan through which you consolidate your debts over a three-to-five year period. The creditors cannot collect from you during the term of the plan.

If you are being harassed by creditors who are bothering you at work, harassing your family, friends, and neighbors, you can stop them immediately simply by hiring our law firm to represent you. Upon retaining our services, our lawyers provide you with a special record number so that you can refer your creditors to us, which will stop the harassment.

In a Chapter 7 bankruptcy we can eliminate any balance due after a vehicle financing company has repossessed your car and auctioned it. This can remove the risk of a lawsuit or garnishments the finance company might seek to recover the difference between the balance owed and the auction price. Or in a Chapter 13 debts that are generally consolidated are mortgage arrears, balances on vehicle loans, student loans, credit card debts and other unsecured debts.

If you have cosigned a debt for a friend or relative, and their failure to pay the debt has resulted in legal action against you, we can eliminate your liability as a cosigner through a Chapter 7 bankruptcy.

Stop Garnishments and End Lawsuits

A Chapter 7 is one of the most effective ways to immediately stop garnishments. Garnishments can diminish your hard-earned income making it almost impossible for you to afford life's basic necessities. By filing a Chapter 7 and stopping the garnishment, you will be able to use your income for more important necessities and start saving for your family's future. We can also help you get your drivers license reinstated if it is suspended due to an uninsured car accident, and stop any lawsuit related to that car accident.

For some clients, we may be able to reduce your car payment, by petitioning the court to allow you to refinance your vehicle for its fair market value-which may be a fraction of the balance due.

Chapter 7 is one way for you to begin reestablishing your credit by reducing your debt to income ratio. With little or no remaining debt, lenders may feel that you will be better able to repay your debts in the future. Many people who file Chapter 7 buy homes within one year, or finance cars after discharge. Many discharged debtors receive solicitations for unsecured credit within a few months.

The Median Family Income is used to determine eligibility for a Chapter 7 bankruptcy.  However, this chart is not absolute. Your median income can be higher than the median and you may still qualify for a Chapter 7 bankruptcy.

Census Bureau Median Family Income By Family Size

(Cases Filed On and After March 15, 2009)

Family Size
State 1 Earner 2 People 3 People 4People*
OHIO $42,458 $52,922 $62,251 $74,234
* Add $6,900 for each individual in excess of 4.

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