Ohio Bankruptcy - Chapter 7

Chapter 7 Bankruptcy is commonly referred to as, “liquidation” and it is the type of bankruptcy that provides the debtor the fresh start that he or she is looking for.  Chapter 7 bankruptcies typically take approximately 4-5 months to complete.  Attorney fees plus filing costs are generally $1,500.  Althought the federal law changes in late 2005 made it more challenging to obtain Chapter 7 Bankruptcy relief, we possess the experience and knowledge to guide you through the bankruptcy process and inform you of what to expect.

In order to file for relief under Chapter 7 of the U.S. Bankruptcy Code, you must qualify under the the Means Test. The Bankruptcy Attorneys at Sheppard Law Offices can explain the Means Test, as well as all of your options, to you.  In order to provide you with an explanation of how the means test works, you will need to know how many people make up your household.  Next, you will need to calculate your household income by retrieving your last full 6 months worth of gross income.  In order to qualify for Chapter 7 Bankruptcy protection, your annual gross household income must be less than a designated dollar figure calculated using IRS standards.  Even in cases where the houselhold income exceeds this threshold amount, we can complete an extended means test to determine whether you can still qualify for such Chapter 7 relief. 

Once you have passed the means test, there is still another analysis that needs to take place.  This analysis involves whether there is any equity in your assets to warrant a Chapter 7 Trustee in desiring to sell any asset or proposing a buy-out option to you.  Typically, the largest two assets that the Chapter 7 trustees examine is real estate and vehicles.  Many protections (also called "exemptions") are afforded debtors.  For example, in a joint bankruptcy, a husband and wife can protect the first $40,400 of equity in their primary residence.  Another example would be that a debtor can protect $3,225 of equity in one vehicle.  Given the variety of assets and debts a debtor may have, it is important to analyze the whole picture in order to determine which type of bankruptcy is appropriate for you.

If you are considering filing for Chapter 7 Bankruptcy relief, please note that under the federal bankruptcy laws enacted in late 2005, any debtor filing for bankruptcy protection must complete Debtor Education.  In a Chapter 7 case, debtor education involves obtaining two certificates.  The first certificate is called the "Pre-Filing Credit Counseling" Certificate.  In order to file your Chapter 7 Petition with the banruptcy court, you must complete and submit this certificate with your petition.  The second certificate is called the "Pre-discharge Financial Management" course.  You must complete this second certificate after your case has been filed with the court and it must be submitted to the court before your debts are discharged.  Debtor education can be completed online or via telephone, and each session takes approximately 2 hours to complete.  Many companies exist that offer these sessions.  At Sheppard Law Offices, we utilize the services of GreenPath.  Each certifciate will cost you $50, and GreenPath emails your certificate to our office.

Our Columbus (Westerville) office is conveniently located near highways I-71 and I-270. Our Newark office is conveniently located one block northwest of the courthouse across from Park National Bank.  Our Mt. Vernon office is conveniently located on the northeast corner of Mulberry Street and Gambier Street.  Our offices are handicap accessible. We accept various options for payment, including credit cards.  However, please note that we cannot accept credit or debit card payments from our bankruptcy clients.  Contact us today for your free one-half hour initial consultation.