Virginia Bankruptcy Lawyer

If you are about to lose your home, have incurred large credit card debt, or are otherwise facing a huge personal financial crisis, working with a seasoned Virginia bankruptcy lawyer could be the key to finding relief. That attorney can advise you on how best to protect and preserve the assets you care most about. If you and your attorney determine that filing for bankruptcy is the best financial decision for your situation, he or she could then explain the different types of bankruptcies while working with you throughout every stage of the filing process. Call today to see if filing for personal bankruptcy is the right option for you and your family.

Why Should Someone File for Bankruptcy?

Filing for bankruptcy has many significant advantages. Once a person has filed for bankruptcy, that person gains some immediate protection from the actions of their creditors. Under the terms of the automatic stay that accompanies every bankruptcy filing, creditors are not allowed to proceed with debt collections or foreclosures. A bankruptcy filing also forbids creditors from harassing people for payments via telephone, email, or mail. A filing of bankruptcy also prohibits creditors from garnishing wages, filing lawsuits, or putting liens on homes. Because the automatic stay also applies to utility companies, filing for bankruptcy could also help people keep their water, gas, electric, and telephones in operation.

Bankruptcy can help a person get a fresh start on their financial future. Filing for bankruptcy might fully and immediately erase some types of debts such as credit card debts. If the person has a poor credit score, a bankruptcy discharge could actually help that person improve the credit score in many cases.

What Are the Different Types of Bankruptcy?

A skilled Virginia bankruptcy attorney will review a person’s financial history and projected financial future to determine which type of bankruptcy a that person should pursue. Generally, filing for bankruptcy is used to help people either liquidate or reorganize their debts into a more manageable payment plan.

Chapter 7 Filing

When people feel overwhelmed by bills and see no feasible way of ever repaying them, they typically think of the type of relief that they could receive under a Chapter 7 filing. Chapter 7 bankruptcy, or liquidation bankruptcy, is the type of bankruptcy that completely wipes away certain kinds of debts. Chapter 7 bankruptcy discharges people from the obligation to pay most unsecured debts such as medical bills, personal loans, some income tax debt, and credit card bills. However, filing for Chapter 7 will not eliminate all debts, so it is essential to speak with a qualified bankruptcy attorney to understand what debts will remain after a bankruptcy discharge in Virginia.

Chapter 13 Filing

Chapter 13 bankruptcy, or consolidation bankruptcy, allows people to reorganize or consolidate their debts into a single debt repayment plan. Under Chapter 13 filings, people pay off most of their debts within a time period that is generally 3 to 5 years. During this time, the plan will be supervised by a court-appointed trustee. A debtor who files under Chapter 13 must have a steady income source to make their payments under the plan. Should a debtor not demonstrate the means to pay off the debts, the court will not approve of any plan or Chapter 13 filing.

Chapter 11 Filing

Chapter 11 bankruptcy filings involve the consolidation of the debt of individuals and businesses with significant debts. These reorganization plans are not restricted to the same 3 to 5-year time limits as Chapter 13 filings and address more substantial debts.

Call for Legal Assistance as Soon as Possible

If you are facing seemingly insurmountable debt, you may benefit from filing for personal bankruptcy. This could give you a fresh start on a bright financial future. A skilled Virginia bankruptcy lawyer can fully explain the federal bankruptcy laws to you and advise you as to whether he or she thinks that filing for Chapter 7 or Chapter 13 bankruptcy is the right decision for you and your family. Call now to get started.