3178 N. Republic Blvd.
Suite 2A
Toledo, Ohio 43615

Providing Peace of Mind Through Chapter 7 and Chapter 13 Bankruptcy

Chapter 7 Bankruptcy Attorney Toledo, Ohio

Toledo Chapter 7 Bankruptcy Lawyer

When filing for personal bankruptcy, you have a decision to make: Chapter 7 or Chapter 13?  Both of these filing options are applicable to individuals who wish to file. Businesses that wish to file may do so under either of these chapters, or Chapter 11.
The name “Chapter 7” certainly isn’t descriptive.  It provides no hints as to what filing for bankruptcy under Chapter 7 actually entails.  While consulting a Chapter 7 bankruptcy attorney in Toledo, Ohio is the best way to gain a complete understanding, you can at least get an introduction to the topic by reading this overview…
Liquidation of Assets
The most important thing for you to understand about Chapter 7 bankruptcy is that declaring under Chapter 7 means you may lose some of your possessions if  the assets are considered non-exempt. This process is called “liquidation.”  The State of Ohio has created multiple exemptions that allow bankruptcy filers to keep property.  Most bankruptcy filers are able to keep the majority, if not all of their personal possessions.

For example, the current homestead exemption allows you to have at least $136,000 of equity in your home.  If you are married and both spouses names are on the deed, than that amount doubles to over $272,000.  In other words, if you own a home and it is worth less than $136,000 (or $272,000 for jointly owned), it will likely be considered exempt and therefore "protected" from the bankruptcy estate.

The court will appoint a trustee to oversee your case, and this trustee is responsible for taking inventory of your possessions, or assets. The trustee will categorize your assets as either exempt or non-exempt. Those which are considered exempt cannot be taken from you, but you may have to relinquish some of your non-exempt assets if you own any.  Albers Law Office can determine during the initial consultation if your assets are exempt or non-exempt.

Liquidation refers to the seizure and subsequent sale of your non-exempt assets. The trustee is responsible for seizing your non-exempt assets, selling them off, and then distributing the proceeds among your creditors as repayment.
Non-Exempt Assets
Non-exempt assets are assets that you can live without. They are not necessary for you to live your day-to-day life. What types of assets are often labeled non-exempt?
Here is a list of possessions you may lose to liquidation: expensive musical instruments, collections of stamps, coins, or other valuable knick-knacks, family heirlooms (depending on value), lavish clothing, and additional houses (i.e. vacation homes). This is not an exhaustive list, but it should at least give you an idea of what you should be prepared to part ways with if you choose to file under Chapter 7.
Exempt Assets
Examples of assets that are exempt (you can keep) are ordinary household goods, one vehicle per debtor, your main residence, jewelry, retirement plans, wages, worker’s comp. payments, social security payments, and clothing.  Again, this is not an exhaustive list, as there are many assets that are exempt under Ohio Law.  All items are exempt if they fall within the permitted exemption amount.
Albers Law Office will advise you prior to the filing of a bankruptcy whether any of your assets are non-exempt and in danger of being liquidated.
Getting a Discharge
If your case is deemed an asset case (you have assets that are not exempt) and the money collected from liquidating your assets does not fully repay the debts you owe to your creditors, you might get a bankruptcy discharge. Getting a bankruptcy discharge means that you are no longer held personally liable for certain debts, and you are no longer legally required to repay them. Negotiating a discharge would be one of the roles of your Chapter 7 bankruptcy attorney in Toledo, Ohio.
If your case is deemed a non-asset case (all of your assets are exempt), then you will likely receive a discharge at the end of your Chapter 7 case.  There is no liquidating of assets and no negotiating for a discharge.

Collection Actions Halted

When you file with a Chapter 7 bankruptcy attorney in Toledo, Ohio, most collection actions taken against you are halted. Actions such as lawsuits against you, wage garnishments, and telephone calls demanding payment will cease. This will help you to clear your head and think straight after what has surely been a long and frustrating battle with creditors.

Three Months from Sweet Relief

When filing under Chapter 7, you’re not required to create a repayment plan. Chapter 7 proceedings take place over a much shorter timeframe than those of Chapter 13, which does involve the creation and implementation of a debt repayment plan. Chapter 7 proceedings usually take anywhere from 3-6 months to reach completion, while Chapter 13 proceedings occur over the course of 36-60 months.
Schedule a Free Consultation
Bankruptcy is complex, and this overview has merely scraped the surface. The best way to get your remaining questions answers is to contact us at 567-825-3635 or schedule a free consultation with our bankruptcy attorney in Toledo, Ohio . I will work to put the stress you are facing from debt collectors behind you for good.
Ready For a Fresh Start?
Call Me at  567-825-3635
contact me via email by filling
out the form below.