Various things can lead to a massive financial crisis – losing the job, too many debts, or a serious disease. However, just because you are in a kind of situation that seems to have no end, it doesn’t mean bankruptcy is the only choice for you. Your best bet is to talk to a legal expert on bankruptcy and take genuine advice for your situation. In Virginia, there are two basic options for filing bankruptcy – Chapter 7 and Chapter 13. In this post, we are discussing more about Chapter 7 bankruptcy and other things of that matter.
Decoding the Chapter 7 Bankruptcy Basics
When it comes to bankruptcy, Chapter 7 is often what most people think about. In this case, the judge will appoint a trustee, who will take control of the assets of the concerned individual and sells them. The money will be used for repaying the debts that the person owns. The debts that are still not paid are discharged, and the debtor has the chance to start afresh with his finances. While Chapter 7 may seem easy, Virginia law does exempt a few assets, such as equity in property for primary residence (to a limit), personal clothing, wedding/engagement rings, furnishings with value of $5000 or less, and a car (subject to terms and conditions).
The other alternative is Chapter 13, which allows the debtor to repay the debt as per a plan approved by the court. The duration is anywhere between three to five years, after which balance on dischargeable debts are allowed to occur.
Schedule an appointment with a Newport News bankruptcy attorney to determine the best debt consolidation solution for your situation.
Do I Really Need Bankruptcy Legal Help?
Bankruptcy is more complicated than what it may seem on paper. Your lawyer will be able to explain why you should or should not file for bankruptcy. In some cases, the lawyer may advise on working it out with creditors where a more suitable repayment plan can be developed with your attorney representing you.
Your bankruptcy attorney is your biggest asset when it comes to working with creditors, or getting advice on some of the other things, like consolidation of debts. Negotiations get easier with an attorney, although creditors still have a big role in finalizing terms.
When you have an experienced and knowledgeable bankruptcy attorney on your side, creditors are more likely to take your repayment proposal seriously.