Overwhelming debt? Time for a fresh start? There are two options for filing personal bankruptcy in Virginia: Chapter 7 or Chapter 13. During your free consultation our attorneys can help you decide which option is best for your situation.
Sometimes known as a “complete” or “straight” bankruptcy – Chapter 7 means that the person turns over all of their non-exempt assets or property (vehicle, house, savings, for example) to a bankruptcy trustee who sells it and distributes the proceeds to the unsecured creditors such as credit card companies, medical bills or loans.
People can usually keep most of their personal property (jewelry, tools and clothing, for example).
Boleman Law will complete all of the complicated forms and paperwork for you, and a Boleman Law attorney will stand beside you and speaks on your behalf at trustee hearings and in court. Knowledgeable people at Boleman Law are always available to help throughout the process.
In return the person is granted a “discharge” of the debt – the debt is cancelled. Some debt (spousal and child support, student loans and some taxes) cannot be discharged in bankruptcy.
The process typically takes about six months.
A Chapter 7 bankruptcy stays on the person’s credit report for 10 years.
This option may work better for people who have regular income. A Chapter 13 filing immediately “stays” or stops any creditor action such as foreclosure, garnishment, repossession, seizure, and attempts at collection including phone calls and letters.
The person files a plan with the bankruptcy court and agrees to pay all debts such as car loans, mortgage arrears, and unseen debts in an affordable monthly payment plan over a three to five-year period. In return the debtor can keep the property (home, vehicle and other assets). Chapter 13 can help save your home from foreclosure, pay off tax debts, and reduce high interest car loans.
Boleman Law will help come up with an affordable financial plan and complete all of the complicated forms and paperwork. A Boleman Law attorney will stand beside you and speak on your behalf at trustee hearings and in court. Knowledgeable people at Boleman Law are always available to help throughout the process which can last for as long as five years.
A Chapter 13 bankruptcy remains on the person’s credit report for seven years.
Mark Leffler, Chief Counsel, and Shareholder joined Boleman Law Firm in 2000 after practicing real estate, business litigation and corporate formation law. He is an author, editor and frequently a featured speaker on consumer bankruptcy matters.
Mark was raised in Williamsburg, VA, and lives in Norfolk, VA with his wife, Leigh, and two children. He is an accomplished martial artist who also enjoys snow skiing and fishing with his kids and traveling with his wife.