If you are one of the many consumers in Virginia who continues to struggle with a mound of debt that only seems to increase despite your best efforts to pay it off, you might have given thought to filing for bankruptcy. Before you make a final decision about a bankruptcy, you will need to know which type of plan could best suit your needs. One element that should be evaluated when making this decision is the amount and type of debt you carry.
For those in Richmond that are struggling with debt, personal bankruptcy may offer them the opportunity to get back into a good position financially while avoiding having to go further in debt due to action being taken by their creditors. Those who wish to enjoy the protections that bankruptcy affords while still staying true to the promises made to repay creditors can do so through a Chapter 13 case. Bankruptcy court officials will also typically do whatever they can to help those working their way through their cases (provided that they follow the mandates and provisions they are given). Abuse the rules of the bankruptcy court, and one could find themselves facing much more than continued financial troubles.
You may be considering your bankruptcy options after experiencing insurmountable financial challenges. Like most Virginia residents in the same situation, you have two main choices for personal bankruptcy – Chapter 7 and Chapter 13. Unlike Chapter 7 bankruptcy, which eliminates eligible debt, Chapter 13 bankruptcy gives you a chance to restructure your debts and make manageable payments over a three to five-year period.
Bankruptcy can be a confusing process. Even if you think you know everything about it, there may be things you think you know that are actually not true. There are many myths out there about this process. Not understanding the truth about it can cause you issues if you are deciding whether to file in Virginia.
You may have heard the term "wage earner plan" used in conjunction with talking about bankruptcy. This term, according to the Eastern District of Virginia, is used in the state as another way to identify Chapter 13 bankruptcy. Because Chapter 13 is a repayment plan, the name is descriptive of the fact that you need to be a wage earner to file under that chapter so you can make the repayments required.
If you are filing Chapter 13 bankruptcy in Virginia, you may be feeling a little stressed out about it. That is perfectly natural. This is a major decision and a huge process to go through. Understanding how the process works can make things a little easier on you. Luckily, the U.S. Courts are fairly transparent about how Chapter 13 works and what you can expect during the process.
If you have more debt than income, you may wonder which of your bills you should apply your money to each month. Falling behind on the mortgage of your Virginia home does not seem like an option, but creditors are becoming more and more aggressive in their attempt to collect the debts, and now you fear having your wages garnished, which will only make things worse.