What happens Chapter 7 bankruptcy in Ohio?
Okay we lost a home due to foreclosure and have been informed to file bankruptcy on this debt before they try to take wages. Exactly what happens when you do this? Someone told me they will auction off your furniture kids toys anything you have pretty much. Including you won’t get tax returns for the next 3 years, it will all go to creditor. Is this correct? Any advice or anything else valuable to know? Thank-You so much in advance.
Posted July 5th, 2010 in Bankruptcy Q and A. Tagged: 3 years, bankruptcy, creditor, foreclosure, furniture, kids toys, tax returns, wages.
The Chapter 7 bankruptcy is applicable if you have no regular sources of income. It works by reducing or clearing off all your debts. You can then make a fresh start without having to worry about having to pay your debts.
Once you file for Chapter 7 bankruptcy, the bankruptcy court assigns a trustee who works as an intermediary between you and the debtors. He oversees everything and checks out if the bankruptcy plan is going as planned.
July 5th, 2010 at 8:15 pmif anything you purchased on credit that was used to secure the debt, it can be repossessed. It’s unlikely they will take furnishings or toys. Someone was blowing smoke.
Bankruptcy is bankruptcy irregardless of the state you live in.
If you owe the KGB (i mean IRS) Chapter 7 will not absolve tax debt.
Chapter 7, known as straight bankruptcy, involves liquidating all assets that are not exempt. Exempt property may include cars, work-related tools and basic household furnishings. Some property may be sold by a court-appointed official-a trustee-or turned over to creditors.
Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments, utility shut-offs, and debt collection activities. Both also provide exemptions that allow you to keep certain assets, although exemption amounts vary.
Personal bankruptcy usually does not erase child support, alimony, fines, taxes, and some student loan obligations. Also, unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep property when your creditor has an unpaid mortgage or lien on it.
July 5th, 2010 at 8:15 pmIf you’re talking about credit card debt…the worst scenario is they they take you to court and win a judgment…at which time they could freeze your checking account and garnish wages if your state allows this. They CANNOT take your firstborn child…neither can they take a pound of your flesh. If you qualify to file for Chapter 7, it erases most credit card debt…FYI…it doesn’t matter what state you file in….
I urge you to contact your local Red Cross for a referral to free legal aide in your area…You need expert advise. Free legal aide is usually stingy but I think your case qualifies. Almost all BK attorneys offer free initial consultations. If you need to file for Chapter 7….do what’s best for you and your family…don’t let anyone try to guilt-trip you into not filing if you really need to do this….
Note: If you file for Chapter 7, make darn sure that you and your dependents are fully covered with medical insurance. It sounds like you’ve already been through enough…The last thing you need is to have an expensive medical emergency after filing Chapter 7 when you don’t have health insurance. This would be a financial disaster. If you qualify for free state Medicaid…..file for it…don’t feel ashamed….
July 5th, 2010 at 8:15 pm