Understanding Chapter 7 Bankruptcy

Chapter 7 bankruptcy, often called "liquidation bankruptcy," is a legal process designed to provide relief to individuals and businesses struggling with overwhelming debt. Under this chapter, a trustee is appointed to oversee the case, sell non-exempt assets (in most cases, all assets are protected from the bankruptcy liquidation), and distribute the proceeds to creditors. The process aims to give debtors a fresh financial start by discharging qualifying unsecured debts, such as credit card balances and medical bills.

One of the key benefits of Chapter 7 is its efficiency, as most cases are resolved within about 4 months. However, not everyone qualifies; applicants must pass a means test, which evaluates their income and expenses to measure one’s ability to repay debts. While Chapter 7 can be a lifeline, it doesn't erase certain obligations like student loans, child support, or recent tax debts.

To learn how Chapter 7 can benefit you, contact Attorney Lucas Ruffing to schedule your consultation:

• Consultations are:

  • FREE

  • Over-the-phone

  • Take about 30 minutes

Take Care!

Lucas Ruffing, Attorney
740-815-1114 (call/text)
LucasRuffingLaw@gmail.com