What is Chapter 7 Bankruptcy Law?

Chapter 7 Bankruptcy Law is a form of bankruptcy available to individuals, partnerships, and corporations in the State of Ohio. This form of bankruptcy is also referred to as liquidation bankruptcy. When filing for Chapter 7 bankruptcy, all of the debtor’s assets (property and property rights) are sold off to pay off creditors and discharged from any remaining unsecured debts. Individuals who choose to file for Chapter 7 bankruptcy in Ohio must meet certain income and debt requirements to qualify. To begin the process, individuals must complete a credit counseling program and provide a copy of their most recent federal income tax return. They must also provide a form of payment for a filing fee. Once the bankruptcy court has reviewed the request, it provides a discharge order that releases the filer from personal liability for all discharged debts. This includes debts such as loans, credit card bills, medical bills, and other unsecured debts. While a discharge order makes it illegal for creditors to pursue any further payments, some debts may remain. In conclusion, Chapter 7 Bankruptcy Law is an effective solution for individuals in Ohio struggling with unmanageable debt. By filing for this form of bankruptcy, individuals can successfully eliminate their debts and start fresh.

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What is Chapter 7 Bankruptcy Law?

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