Many individuals facing substantial debt see filing for bankruptcy as a last resort. Though many may be unwilling to consider bankruptcy initially, it can provide an opportunity for a fresh financial start. One of the most important steps is determining whether filing for Chapter 13 or Chapter 7 bankruptcy is right for you.
What Is Chapter 7 Bankruptcy?
Unlike a Chapter 13 bankruptcy, a Chapter 7 bankruptcy does not involve filing a plan of repayment. Rather, the bankruptcy trustee sells a person’s nonexempt assets – some assets are designated as exempt from the claims of creditors by law – and uses the proceeds to pay off creditors according to the rules of the Bankruptcy Code.
The end goal of the Chapter 7 process is for the debtor to receive a discharge, which releases him from personal liability for most debts and prevents creditors from pursuing collection. There are, however, exceptions to receiving a discharge in Chapter 7.
A Bankruptcy Attorney Can Help
If you are attempting to determine whether filing for Chapter 7 bankruptcy is right for you, contact an experienced bankruptcy attorney. A bankruptcy lawyer can assess your case and help guide you on the best way to protect your assets and get a fresh start.
We hope you find the foregoing useful and that you choose to schedule a consultation today. Contact Info We have four offices: DAYTON (at the 75 South / 725 Interchange);WEST CHESTER (on Route 747 near the Union Center exit on Route 75); and Cincinnati (HYDE PARK and EASTGATE). We would be glad to meet with you at a convenient time, including evenings and weekends.