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FAQs About Bankruptcy Richmond VA

Learn About Filing Chapter 13 and Chapter 7 Richmond

If you are overwhelmed with debt and are ready to take back your finances and get your credit back on track, our law firm can help you decide if filing bankruptcy Richmond, VA is right for you. If you are thinking about filing for bankruptcy, it is important to know what the different options are available. The majority of bankruptcies filed in the United States are Chapter 7 and Chapter 13 and each depends on debts and income. When you are ready for debt relief, our bankruptcy lawyers in Richmond can assist you with determining if you should file for a Chapter 7 or Chapter 13 bankruptcy. Our bankruptcy lawyers offer an initial FREE bankruptcy consultation, which can help determine your options.

What is a Chapter 7 Richmond Bankruptcy?

Filing a Chapter 7 Richmond is the most common type of bankruptcy. Under Chapter 7, most of your debts will be eliminated or discharged. You will no longer have any legal obligation to pay these debts. Filing a Chapter 7 Richmond will give you the right to keep your home, automobile, household furnishings, and most other assets. If you owe money on your home or automobile and wish to keep them, you should continue to make the payments during and after the bankruptcy.

Filing any type of bankruptcy in Richmond, VA you will receive immediate relief from your creditors. As soon as your petition is filed, you come under the protection of the United States Bankruptcy Court. Creditors are not permitted to call you demanding payment.

Filing Chapter 7 Stops Debt Collectors and Wage Garnishment

After you file a Chapter 7 in Richmond with our bankruptcy lawyers any lawsuits, wage garnishments, and other efforts to collect debts will stop. If you are working, a bankruptcy should not cause you to lose your job. In fact, there usually is no reason to inform your employer that a bankruptcy has been filed.

At the end of the Chapter 7, any debts that were not discharged, such as alimony, child support, student loans, and certain taxes, will still be owed.

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Since the rest of your debt will be discharged, you will be left in a better position to keep up with these obligations.

Rather than devoting your income to paying credit card minimums and medical bills, you will be able to focus on the things that are most important to you and your family. Discharging your unsecured debts also means no more "borrowing from Peter to pay Paul." After our bankruptcy attorney has finished with your Chapter 7, you'll be able to live on what you earn rather than falling further and further behind. Filing bankruptcy Richmond will give you a fresh start without the overwhelming debt.

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What is a Chapter 13 Richmond Bankruptcy?

The second type of Bankruptcy is referred to as a Chapter 13 bankruptcy or the reorganization of debts. A Chapter 13 Richmond bankruptcy is not designed to simply eliminate debts. Rather, it pays your creditors either in full or in part monthly installments over a period of three to five years. Your debts can thus be paid off over time, usually without interest.

Chapter 13 bankruptcy is most commonly used when a home is in foreclosure and time is needed to bring late payments current. It may also be used to regain possession of a car that has been recently repossessed. A Chapter 13 bankruptcy is also beneficial if you have debts such as taxes or student loans which may not be eliminated in a Chapter 7 proceeding. If you have a certain level of income left over after paying your reasonable and necessary monthly expenses, you may not qualify for a Chapter 7 bankruptcy. Our Richmond bankruptcy lawyer can help determine if you qualify for a Chapter 7 or Chapter 13.  However, you may wish to pay your creditors over time through a Chapter 13 bankruptcy.

Filing Chapter 13 Richmond Can Stop Foreclosure and Car Repossession

Filing for Chapter 13 Richmond allows you to stop foreclosure proceedings and auto repossessions.

The automatic stay, as discussed in the Chapter 7 information section, is also in effect immediately upon the Chapter 13 filing. Not only are you able to pay your arrears on your house or auto through the plan, but the creditors are also prevented from proceeding against you while you are in the plan and catching up. As long as you are making your mortgage, car payments and Chapter 13 plan payments you can retain your property.  Our Richmond bankruptcy lawyer can go over the repayment options in your Chapter 13.

Let our bankruptcy lawyers in Richmond put an end to harassing phone calls from creditors.

Contact Bankruptcy lawyer Richmond, VA to put an end to your debt. We are conveniently located in Downtown Richmond, Virginia. Speak with an experienced bankruptcy lawyer today to find out if you can file for Chapter 7 or Chapter 13.

FREE Initial Consultation for Bankruptcy Richmond VA (804) 788-1655