Chapter 7 Bankruptcy Filing Information – Barry and Feit Law – Toledo, Ohio

Chapter 7 Bankruptcy Form - Barry and Feit Law

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a proceeding in the United States Bankruptcy Court that allows you a fresh start. You might think of a Chapter 7 is a get out of debt card, but you can only file a Chapter 7 bankruptcy once every eight years.

When you file a Chapter 7 bankruptcy, you are asking the Court to discharge or wipe-out your personal obligation to pay your creditors, so that you never have to pay these bills.

There are some types of debts that you may not be able to discharge, such as alimony and child support obligations. Certain types of taxes for certain periods of time. Certain student loans. Fraudulently incurred debts and certain other types of debts. Once we review your list of creditors, we will discuss with you any problems we anticipate regarding these so-called non-dischargeable debts.

You may have creditors that have mortgages or liens on your property, such as a house mortgage or a lien on your automobile. When you file bankruptcy, the discharge order signed by the Judge discharges or wipes out your personal obligation to pay the debt, but the lien remains. The creditor still has the right to sell the collateral and after the sale, the creditor will not have the right to pursue you for any remaining balance. The creditor is limited to what they can get by selling the collateral.

Many times people wish to make an agreement to keep property that was pledged to a creditor as collateral, such as your home or automobile. This is possible through a reaffirmation agreement, a written contract with the creditor to reaffirm or take the debt back on. These reaffirmation agreements are voluntary on your part and on the creditor’s part. Once you sign a reaffirmation agreement, you have 60 days at a minimum to change your mind and rescind or back-out of a reaffirmation agreement. After that time period, you are legally obligated to pay the reaffirmed debt as if you did not file bankruptcy against that particular creditor. We will discuss reaffirmation agreements with you when we review your list of creditors and answer any specific questions that you may have.

When you file bankruptcy, there is a limit to the amount of property that you may keep. These are called exemptions or property that is exempt from the bankruptcy court. We will discuss the exemptions with you as it relates specifically to your situation, but you should know that over 90% of the people who file bankruptcy keep everything they have. The Bankruptcy Laws of the United States  are very complex, and you should have a lawyer who is knowledgeable and experienced in this area of the law to counsel you and guide you through this process.

At Barry & Feit, we have been providing these services to our clients for over 35 years and we have the necessary knowledge and expertise to help you solve your financial problems. If you would like to schedule an appointment to evaluate your debt problems, and formulate a plan to solve them, at no cost or obligation, please contact us and we will be happy to schedule a free initial consultation at your convenience.


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