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Consumer Bankruptcy FAQ

Life brings unexpected financial changes.  You may be dealing with unexpected medical bills, wage garnishments, or the loss of your job.  You may be in over your head with household or credit card bills and looking for a fresh start.  Bankruptcy may be the fresh start you need.  No one sets out to have a financial crisis or deserves to feel hopeless or trapped by never ending collection calls and letters.  Bankruptcy laws were made to help people just like you get back on track.​​​​​​​​​​​​​​

Please see the information below to find the answers to some of the most frequently asked questions regarding consumer bankruptcy.

What is a Chapter 7 bankruptcy?

Chapter 7 bankruptcy is the most common form of bankruptcy and is also known as a liquidation bankruptcy.A person's eligibility to file is determined by the "Means Test." This test calculates your income as compared to the average family of the same size in your state. If your income falls below the median income for your family size, there is no "presumption of abuse" and you can usually file for Chapter 7.Many clients are able to keep certain secured debts such as your car or house.

Are employers told about Chapter 7 bankruptcy cases?

Response provided in Part I of this video.

Employers rarely find out about a Chapter 7 bankruptcy filing. However, if a creditor has sued you, obtained a judgment, and started garnishing your wages, your employer will get the news. The bankruptcy will stop the wage garnishment, and your employer will be notified about it. 


Will I lose my property if I file bankruptcy?


Usually you will not lose all of your property.  Certain property is exempt-i.e. protected by the law from claims from creditors, unless it is secured by a valid mortgage, lien or security agreement. A person can usually retain certain property even if it does have a mortgage, lien or security agreement through what’s called redemption.  This is available on certain personal and household property, like furniture, clothes, appliances, tools of the trade.  You should discuss the availability of redemption of property with your attorney.  

When is the best time to file a bankruptcy?​​​​​​​

Experienced bankruptcy lawyers look for certain situations to determine the best time.  He or she will show you how to maximize the property you can keep, while eliminating the most debt allowed under the law.

The case should not be filed until all anticipated dischargeable debts have been incurred.  The reason is that the only debts that can be discharged are the ones that have been incurred before you file the case. 

What is a Chapter 7 discharge?

Response provided in Part I of this video

What Happens if there is more than one name on a debt?

Response provided in Part II of this video

A Chapter 7 discharge when the court orders a debtor to be released from dischargeable debts, and orders the creditors not to attempt to collect from the debtor.  The person who filed the bankruptcy and receives the court order, does not have to re-pay the debt that is allowed to be in the bankruptcy.  Not all debts, however are dischargeable. 

Also, a chapter 7 discharge releases only the person or persons who filed it.  So if there is a co-signer or another person who is responsible for the debt, this person remains liable for the debt even if one co-signer or other responsible person receives a bankruptcy discharge. 

Call us today at (513) 791-7919 and we can analyze your situation.  We can work with you to see if bankruptcy is the right option for you.  This law firm represents eligible people and families to get a financial fresh start in bankruptcy court.

We are a law firm and a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.