There are four variations, or chapters, of bankruptcy, all with the same goal of relieving debt for overwhelmed individuals and businesses. The number of options that exist for people who seek to file bankruptcy can be difficult to grasp on your own and should be explored with the help of your Warrenton, VA bankruptcy attorney.
The chapters of bankruptcy and their purposes are as follows:
- Chapter 7 Bankruptcy: The debt liquidation bankruptcy. In this commonly known type of bankruptcy, you will be expected to give up all the property you own with the exception of certain exemptions. You can maximize the amount of property you are able to keep by working carefully with an experienced Chapter 7 bankruptcy attorney in Warrenton, VA.
- Chapter 11 Bankruptcy: The commercial bankruptcy. Chapter 11 bankruptcy is reserved mostly for companies rather than individuals. However, it is possible for a person who has a very high amount of debt to file Chapter 11 bankruptcy. If you believe that you could possibly be eligible for a Chapter 11 bankruptcy, do not hesitate to contact a bankruptcy attorney in Warrenton, VA.
- Chapter 12 Bankruptcy: The family farmer bankruptcy. The requirements for a Chapter 12 bankruptcy are stringent and always call for a highly skilled, experienced Warrenton, VA Chapter 12 bankruptcy attorney.
- Chapter 13 Bankruptcy: The debt reorganization bankruptcy. In a Chapter 13 bankruptcy, your Warrenton, VA Chapter 13 bankruptcy attorney would be required to get the court to approve a repayment plan for your debts that is sustainable on your current income.
Most of the bankruptcies filed by both individuals and married couples, by quite a large margin, are Chapter 7 or Chapter 13 bankruptcies. No matter which type of bankruptcy you wish to file, it is imperative to consult a reputable bankruptcy attorney in Warrenton, VA.
Does Bankruptcy Happen In State Court In Virginia?
Bankruptcy is a legal financial procedure, which takes place in a court of law after a person or business meets the eligibility requirements and asks for help in reorganizing or discharging their debt. While bankruptcy may be common, it is a very complicated area of the law and should not be taken lightly or filed without guidance from a trained bankruptcy attorney in Warrenton, VA. Bankruptcy is governed by federal law rather than state law, so bankruptcy cases take place in a federal court.
Can Filing Bankruptcy Really Make A Difference In My Day-To-Day Life In Warrenton, Virginia?
Filing bankruptcy in Warrenton, VA is one of the biggest steps you can take toward living a lower-stress, debt free life. A bankruptcy proceeding can help you meet these goals by:
- Discharging (forgiving) a number of your eligible debts.
- Preventing foreclosure on your home.
- Preventing your personal property from being repossessed by creditors.
- Returning your personal property that has been repossessed by creditors.
- Reversing wage garnishments against your income.
- Restoring your utility services that have been shut off.
- Challenging any potentially fraudulent creditor claims against you.
Are There Any Debts That Bankruptcy Cannot Reorganize Or Discharge In Virginia?
Bankruptcy is not the answer to every problem that involves debt. It is necessary to engage a bankruptcy attorney in your bankruptcy case in Warrenton, VA, if you wish to maximize its benefits. Bankruptcy, like all procedures, does have limits:
- Bankruptcy will not remove the rights of secured creditors. A debt that is attached to collateral is considered a secured debt.
- Bankruptcy will not remove court obligations such as child support, criminal fines, or alimony.
- Bankruptcy cannot protect any cosigners on your loans.
Can I Still Own Property If I File Bankruptcy?
Having filed bankruptcy does not prevent you from owning property. Even during bankruptcy, you will be able to keep all of your property that has been considered exempt. You will still be capable of owning property. If you receive specific types of assets within 180 days of filing of your bankruptcy, you will have to use those funds or assets to pay off your creditors. These special assets include life insurance benefits and inheritances. Your Warrenton, VA bankruptcy attorney should be able to answer, in detail, all of your questions about which of your assets are exempt.
How Much Will It Cost Me To File Bankruptcy In Virginia?
Since bankruptcy is a federal matter, the filing fee is the same in every state. Currently, it is about $300 for Chapter 7 and slightly less than $300 to file a Chapter 13. Filing fees are the same whether it is an individual or a married couple who is filing. Some federal courts may be willing to accept a payment plan, if you are struggling financially. If you retain a Warrenton, VA bankruptcy attorney, you will also need to pay legal fees.