Chapter 7

Chapter 7 Bankruptcy

Norfolk Bankruptcy Attorney

Are you swimming in debt? It might be time for you to consider filing for Chapter 7 bankruptcy to eradicate your debts. Bankruptcy can be one of the best options for relieving financial strain. How does Chapter 7 work? Chapter 7 is a liquidation where the trustee collects and sells any of your assets which are not exempt.

Certain debts cannot be discharged in a Chapter 7 bankruptcy and these include alimony, fraudulent debts, certain taxes, child support, student loans and so forth. The most commonly dismissed debts are credit card debts, medical bills and unsecured personal loans. The best part about filing for Chapter 7 bankruptcy is that the majority, if not all, of your debts can be dismissed. The downside is that you must be willing to part with certain non-exempt assets.

Exemptions

Home - $5,000 (husband and wife may double) plus $500 per dependent
Insurance - Accident or sick benefits, burial society benefits, cooperative life insurance benefits, fraternal benefit society benefits, group life or accident insurance for government employees, group life insurance policy or proceeds, industrial sick benefits
Pensions - City, town and county employees, ERISA-qualified benefits to $17,500 per year, judges, state employees
Personal property - Bible, burial plot and preneed funeral contract (not to exceed $5,000), all pets, all medically prescribed health aids, clothing to $1,000, family portraits and heirlooms to $5,000 total, household furnishings to $5,000, motor vehicle to $6,000, personal injury caused of action, personal injury recoveries, pets, wedding and engagement rings
Public benefits - Aid to blind, disabled, AFDC, general relief, crime victim compensation unless seeking to discharge debt for treatment of injury incurred during a crime, unemployment compensation, worker's compensation.
Tools of trade - Horses, mules, wagon or cart, tractor to $3000, plow (2), drag, harvest, cradle, pitchfork, iron wedges (2), fertilizer to $1000 of farmer, tools, books and instruments of trade needed in your trade, including motor vehicles, to $10,000, uniforms, arms, equipment of military member
Wages - Minimum 75% of unearned but unpaid wages, pension payments; bankruptcy judge can authorize more for low-income debtors
Wild card - Unused portion of homestead, of any personal property, $10,000 of any property for disabled veterans

Get Started Today

After determining that you qualify for a Chapter 7 bankruptcy, Virginia law requires that you take a credit counseling course from an approved credit counseling provider within six months before filing for bankruptcy and that you complete a debtor education course from an approved debtor education agency prior to receiving a bankruptcy discharge.

Filing for Chapter 7 can stop creditors and debt collectors and protect you from repossession, foreclosure, garnishment and lawsuits. Usually a debtor can complete a case and receive a discharge within three months of filing for bankruptcy.

While a bankruptcy can stay on your credit report for up to 10 years, over time, a bankruptcy can wind up improving your credit. For more answers to the questions that have been plaguing you, contact a qualified Norfolk bankruptcy attorney at Curcione Law, PLC today! We can provide you with the competent counsel and guidance you need during this difficult time.

We can help you fill out the paperwork, file documents, make deadlines, respond to court orders and perform other duties that can seem daunting to complete alone. Call us now!