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Akron-Canton Ohio Chapter 7 Bankruptcy Lawyer

Fresh Start Chapter 7 Bankrupcty filing office in Columbus, Ohio

Canton, Ohio
Chapter 7
Bankruptcy Office

Chapter 7 bankruptcy is often reffered to as “fresh start” or “liquidation” as it discharges all of a debtor’s unsecured debt. The debtor must qualify under the Means Test, as outlined in U.S. Bankruptcy code. In addition to the Means Test, there is an evaluation of assets and equity, in addition to a requirement to complete Debtor Education. To file Chapter 7 Bankrutpcy it typically costs about $1,500. This includes attorney and filing fees, and Sheppard Law Offices does offer payment plans for these costs. The timeline for completing a Chapter 7 bankruptcy is about four to five months, typically.

The Means Test evaluates your gross household income for the previous six months, including the number of individuals in your household. This information is used to determine if your household income falls within the guidelines set under bankrutpcy code. If so, you may proceed with filing a Chapter 7 bankruptcy. If you do not qualify to file for chapter 7 under the means test, it may still be possible to qualify for Chapter 7 protection through use of the extended means test.

During evaluation of your assets and equity, it will be determined if you have assets that might be liquidated through sale or buy-out, including automobiles, recreational vehicles or real estate. This process does allow for some exemptions, both federal and Ohio specific. Under Ohio’s motor vehicle exemption when filing bankrutpcy allows for you to exempt up to $3675 of the equity of the vehicle. If the value of your vehicle is greater than this, there may be additional excemptions which can be applied, such as the wildcard, tools of the trade, or medically necessary exemption. Under the newly increased Homestead Exemption the equity in a home can now be protected up to $132,900. Every situation is unique, so it is important to evaluate your specific circumstances with a bankruptcy attorney in order to decide which option for debt relief is right for you. As part of the requirements of filing for Chapter 7 bankruptcy, the debtor must complete two phases of Debtor Education, called “Pre-Filing Credit Counseling” and “Pre-Discharge Financial Management”. The first phase must be completed in order to submit your petition to file for bankruptcy. The second phase must be completed before the court will discharge your debts. Certificates of completion for each phase must be submitted to the bankruptcy court as proof of completion. We use the GreenPath consumer credit counseling services for these courses, which are $50 each. For convenience, certificates of completion are emailed directly to Attorney Sheppard’s office.

You may also wish to learn about Chapter 13 bankruptcy, also known as “reorganization.” To learn more about Chapter 13 bankruptcy, click here.

If you are considering filing for Chapter 7 bankrutpcy protection, contact Attorney Kenneth L. Sheppard, Jr. at our Akron-Canton Bankruptcy office in Canton, Ohio. During your free consultation we can help you decide if a Chapter 7 bankruptcy is the best option for you or if there may be a better solution to your financial situation. If you are concerned about the cost of bankruptcy, keep in mind that we offer payment plans, to meet your needs.