The four different types of bankruptcy are referred to under the law as chapters. Each chapter is designed to be used for a different way of relieving debt. The options for filing bankruptcy can be overwhelming and should be completely explained by your Richmond, VA bankruptcy attorney.
- Chapter 7 Bankruptcy: Chapter 7 bankruptcy is probably the most well-known form of bankruptcy by the general public. The individual or company who is filing the bankruptcy will have to give up all of their property that exceeds certain limits. These limits are called exemptions. This property that you forfeit is to be sold by a court-appointed trustee and the profits will be applied to paying off your debts. Filing with the help of an experienced Chapter 7 bankruptcy attorney in Richmond, VA is the best way to make sure that all your exempt property is preserved.
- Chapter 11 Bankruptcy: Chapter 11 bankruptcy is a type of bankruptcy that is reserved mostly for commercial businesses. However, Chapter 11 can also be useful for some people who have with very high amounts of debt. If you are an individual who believes that you may be eligible for Chapter 11 bankruptcy, consult a bankruptcy attorney in Richmond, VA.
- Chapter 12 Bankruptcy: Chapter 12 Bankruptcy is a family farmer bankruptcy and requires experienced assistance from a Richmond, VA Chapter 12 bankruptcy attorney.
- Chapter 13 Bankruptcy: A Chapter 13 bankruptcy is known as a debt adjustment or reorganization bankruptcy. Your Richmond, VA Chapter 13 bankruptcy attorney must submit a new repayment plan for your debts to the court for approval.
Bay far, most bankruptcies filed by individuals and married couples are Chapter 7 or Chapter 13 bankruptcies. It is vital to consult a skilled bankruptcy attorney before committing to filing bankruptcy in Richmond, VA.
Does Bankruptcy Happen Through A Court Of Law In Virginia?
Bankruptcy is a legal procedure. As such, bankruptcy takes place in court when a person or business has become overwhelmed by debt to the extent that they have asked for help in reorganizing or forgiving that debt. While bankruptcy is common, it is a complicated area of law, and should only be entered into with the close guidance of a trained bankruptcy attorney in Richmond, VA. Bankruptcy is governed by federal law, so all bankruptcy cases are to be handled in federal courts.
How Will Filing Bankruptcy Improve My Daily Life In Richmond, Virginia?
Filing bankruptcy in Richmond, VA, under the right circumstances, can greatly reduce the daily stressors experienced by people living in debt by:
- Discharging (forgiving) debts that meet certain requirements.
- Preventing your home from being foreclosed on.
- Preventing the repossession of your personal property.
- Returning personal property that has been repossessed.
- Reversing wage garnishments.
- Restoring utility services after shut off.
- Legally challenging fraudulent creditor claims.
Are There Any Debts That Bankruptcy Cannot Reorganize Or Discharge In Virginia?
Bankruptcy is not the only option or the best option for all people or all debts. In order to maximize the benefits of bankruptcy, a bankruptcy attorney is necessary in Richmond, VA. Bankruptcy of all types has its limitations:
- Bankruptcy cannot erase the rights of your secured creditors. Any debt that is attached to collateral is a secured debt. Keeping collateral without paying the associated debt is not acceptable, even in bankruptcy.
- Bankruptcy cannot eliminate family court obligations such as child support, student loans, or back taxes.
- Bankruptcy cannot protect cosigners.
- Bankruptcy cannot remedy additional debts once filed.
Will I Be Able To Own Property In The Future, If I File Bankruptcy?
It is not true that people who file bankruptcy can no longer own property. After you file bankruptcy, you will be permitted by the court to keep all of your exempt property. You may also own new properties. There are very specific types of assets that you will be required to forfeit, if you receive them within 180 days of the filing of your bankruptcy. These include inheritances and life insurance benefits and they will be used to pay your creditors. Your Richmond, VA bankruptcy attorney can explain in detail which of your assets are exempt and which are not.
Is It Expensive To File Bankruptcy In Virginia?
The filing fee to file bankruptcy under Chapter 7 in Virginia is about $300. It costs slightly less than $300 to file a Chapter 13 bankruptcy. Filing fees do not vary depending on whether an individual or a married couple is filing. Some courts might accept payment plans for fees from people who are struggling financially and need to file bankruptcy as a result. If you utilize a Richmond, VA bankruptcy attorney, you will need to pay legal fees on top of these filing fees, which will be determined by your individual attorney.