If you are like many homeowners in Virginia who struggle financially, you may look to Chapter 7 bankruptcy as a viable debt relief option. However, while Chapter 7 has many appealing options, there are a few pitfalls, the biggest of which is you are likely to lose your home. Fortunately, there are a few instances in which filing for Chapter 7 will not result in the loss of your home, which SFGate details for your convenience.
When personal debt gets out of control and the residents of Virginia feel the pressure to make payments they can no longer afford, bankruptcy is a valuable option. Because there are several types of bankruptcy and each type changes how much you pay, how your debts are discharged and how your credit is affected, it is important to understand the benefits of each type.
Most individuals who find themselves faced with an avalanche of debt but who want to keep their homes file for Chapter 13 bankruptcy, which is more of a reorganization bankruptcy. However, to qualify for Chapter 13, you must have the ability to repay a portion of your debt over a three to five-year period. If you do not have the means to do this, you may have to file for Chapter 7. Does doing so automatically mean you lose your home? Not necessarily. According to SFGate, filing for Chapter 7 may not cost you your home. In fact, the more you owe on your Virginia home, the greater the likelihood the courts will let you keep it.
People in Virginia who find themselves facing severe financial challenges may end up deciding that filing for bankruptcy is the best way to get out from under their mound of debt. Once this decision has been made, there will be steps to complete the Chapter 7 process but it is also important to focus on how to move forward after the bankruptcy is complete since a better future is ultimately what a bankruptcy can provide for people.
If you filed for Chapter 7 bankruptcy in Virginia and the bankruptcy court converted your case to a Chapter 13 or dismissed it altogether, you may be wondering why. What caused you to become ineligible for liquidation bankruptcy? According to FindLaw, there are several seasons that the bankruptcy courts may have converted or dismissed your case.
When you decide to file bankruptcy in Virginia, one of the first choices you have to make is whether to file Chapter 7 or 13. These offer some similar benefits, but they are quite different in how they reach the resolution. It is essential to understand the options, so you can make a proper decision on which type of bankruptcy to file.
One of the biggest reasons why people end up filing for bankruptcy in Virginia is because their debts have become so complex that they are being constantly hounded by debt collectors. Once you file your petition, debt collectors must stop contacting you. However, did you know that you have rights when it comes to debt collection even if you have not filed bankruptcy?
If you count yourself among the many people across Virginia who are dealing with overwhelming debt and considering filing for bankruptcy, you may have heard the terms “Chapter 7” and “Chapter 13” thrown around. You may not know exactly how they differ, though, or whether you are eligible to file for bankruptcy through either method. At Ferriswinder, PLLC, we understand how the bankruptcy means test determines Chapter 7 eligibility, and we have helped many clients find bankruptcy solutions that meet their specific needs.
People in Virginia who are drowning in debt may have a number of options, depending on their situation. However, if every bill comes with stress over how it can be paid, if collection agencies are calling daily requesting payment or if wages are being garnished, the fastest and most effective route to relief may be Chapter 7 bankruptcy.