If you have heavy bills and are short of means to afford monthly payments and living expenses in Virginia, then filing a Chapter 7 bankruptcy may be your only option for getting your finances back on track. It is also referred to as straight or liquidation bankruptcy and is used to clear away other kinds of unsecured debts.
The agency for bankruptcy and debt relief in Virginia, John W. Lee, P. C. Law Firm has more than 70 years of experience dealing with a wide variety of legal expertise. Their team of six experienced attorneys offers reliable and highest-level service to help you become debt-free.
How Does It Work?
When you file bankruptcy for Chapter 7 in Virginia, a temporary stay is placed by the court on your current debts. This is helpful as it puts a hold on the creditors from:
- Collecting payments
- Possessing your property
- Withholding your wages
- Confiscating your home
- Evicting or turning you off from using the utilities.
Your property is taken over by the court of law in Virginia and a bankruptcy trustee is appointed for your case.
Role of the Bankruptcy Trustee
- The job of the trustee is to analyze your assets and finances and look after your bankruptcy matter.
- A part of your property that is not under bankruptcy will be sold by the trustee for repaying your creditors.
- The trustee will also arrange a meeting between you and the creditors, called a creditor meeting or the 341 Hearing.
- You will have to be present in the courthouse to answer all questions regarding your filing.
Debts Discharged during a Bankruptcy
Filing for bankruptcy under Chapter 7 in Virginia usually discharges your unsecured debts like:
- Credit card debt
- Medical bills
- Personal loans
These debts are discharged by the court at the end of the trial which would be around four to six months after your filing.
The debts that are not discharged are:
- Tax debts
- Child support
- Student loans
- Homeowner association fees
- Court fees
- Personal injury debts due to being intoxicated
- Unsecured debts that were intentionally not included while filing the case
How to File
- File your forms listing your secured and unsecured debts
- Send the documents to the trustee for verification
- Attend creditor meeting
- Attend state-mandate budget counseling
- Wait for the discharge notice from the court
Filing bankruptcy in Virginia can be quite tasking. Therefore, take the help of a good attorney and rebuild your finances.