Chapter 7, in plain language
For many people carrying debt they cannot realistically repay, Chapter 7 offers the cleanest fresh start. Here is how it actually works.
What Chapter 7 does
Chapter 7 is sometimes called a "fresh start" bankruptcy. For most people, it clears unsecured debts such as credit cards, medical bills, personal loans, and old utility balances. Once those debts are discharged, you no longer owe them, and the collection calls stop.
The process is usually quicker than people expect. From filing to discharge is often around three to four months. Most cases do not involve going in front of a judge. There is a short, routine meeting with a trustee, and we prepare you for it so it holds no surprises.
Who it tends to fit
Chapter 7 often makes sense for people whose income is modest relative to their debts, and whose debts are mostly unsecured. There is an income test, but it is not a wall. Many people who assume they will not qualify actually do. We check this carefully before you file, so there are no false starts.
- Credit card and medical debt
- Personal loans and many old balances
- Constant collection calls
- Most wage garnishments
What about my home and car?
This is the question almost everyone asks first, and the answer is more reassuring than people fear. Ohio law lets you protect a certain amount of equity in your home, your car, and your household belongings. Many people keep everything they own. We review what you have early on, so you know what is protected before you decide anything.
What it does not do
Chapter 7 is not the right tool for every debt. It generally does not erase most student loans, recent taxes, child support, or alimony. If your main concern is catching up on a mortgage or car loan rather than wiping out debt, Chapter 13 may fit better. We will tell you plainly which path makes sense for you.