People rarely think about filing for bankruptcy until they need this type of service. When debts become overwhelming, it can be difficult to make sense of the bankruptcy options. The following guide will explain what you need to know about getting out of debt by filing for Chapter 7 bankruptcy.

What to Review Before Filing for Bankruptcy

What is Chapter 7 bankruptcy?

Chapter 7 bankruptcy is a process that relieves unsecured debts. The petitioner must turn over their nonexempt assets to a court-appointed trustee. The trustee will liquidate the assets to pay off some or all of the debts owed by the petitioner. A qualified bankruptcy attorney can help you evaluate what assets will be protected and what won’t be. Creditors cannot continue seeking payment for the remaining balances owed to them after the debts have been discharged.

Which debts won’t be discharged?

Your bankruptcy lawyer will provide you with a specific list of debts that will be discharged in your case. However, you’ll still have to liable for some debts, such as government or court-ordered fees and fines. These include taxes, fines imposed as penalties, spousal and child support payments, or student loan debts. You may also be responsible for paying personal injury or wrongful death judgments against you.

Should I file for bankruptcy before or after getting divorced? 

This depends on your particular situation. It is best to get advice from a qualified bankruptcy attorney along with your domestic relations attorney to make that determination. There can be advantages in filing both before or after the divorce proceeding is completed depending on your particular facts.

If you divorce during a bankruptcy, the division of personal belongings, monetary assets, and other items may be based upon property that will be surrendered in the bankruptcy.

What happens to my money after I file for Chapter 7 bankruptcy?

Generally your income is protected after you file for Chapter 7 bankruptcy. If a death occurs within 180 days of your filing bankruptcy and your are to inherit or receive proceeds those may need to be turned over to the bankruptcy trustee. 

Facing mounting debt can be a frustrating experience, but filing for bankruptcy with a trusted attorney will help. Located in Cincinnati, OH, Nancy V. Jacob is a qualified bankruptcy attorney who provides personalized assistance to each client. Backed by over 30 years of experience, she strives to build lasting relationships with her clients by providing insightful and effective debt relief help. To schedule a free consultation, visit her website or call (513) 921-1400.