When you file for bankruptcy in Virginia, you are making a decision that is going to change your life for years to come. Whether it’s for the worse or for the better is up to you. After filing, you will be given a clean slate and will be able to build up your credit rating again. The bankruptcy will stay on your credit report for the next seven to 10 years however. It can be difficult to determine when declaring bankruptcy in necessary, odds are bankruptcy is going to be your best bet if any of the following applies to you: you have a hard time making minimum payments, you have had a severe financial setback, you can’t find a way out of debt within the next five years, or you are getting foreclosure notices.
If you declare bankruptcy in Virginia, it will probably by the Chapter 7 method. This method will wipe away all old debts. It is called the liquidation method because you will be liquidating your possessions to pay off your creditors. There’s no need to worry though, most of the time those who declare Chapter 7 don’t have to give up a thing. This is due to the numerous exemptions that each state allows those who file for bankruptcy. In order to qualify for chapter 7, you must have had 6 months worth of credit counseling, and you must make less than the median annual income for your state.
When you file for bankruptcy, you will have to gather up a lot of paperwork in order to fill out the various forms and schedules needed. This paperwork will include information about your financial situation including: a list of your major assets and possessions, last two tax returns, a list of your living expenses, a list of your creditors and how much you owe each of them, and deeds and titles to property. Your lawyer can help you find this information. You or your lawyer will then submit your petition and schedules to the Virginia district bankruptcy court.
When declaring bankruptcy in Virginia, you will be given numerous exemptions for your property. Here is a small sample: your home up to $20,200, life insurance payments, alimony, child support, pension and retirement benefits, health aids, jewelry to $1,350, motor vehicle to $3,225, tools of trade, lost earnings payments, and much more.
If you think you may be facing bankruptcy, consult with a bankruptcy lawyer near you today to discuss your case.