Before moving on to a specific type of bankruptcy, let us first understand what this term means.
Let’s say you have borrowed money from someone – it could be a person, a bank or a credit institution. Then you find yourself unable to pay back the money you’d borrowed. This could happen due to any reason, the chief being facing immense financial hardships. Try as you might, you find it extremely difficult to make ends meet, let alone make a payment. So you declare bankruptcy – which means you tell the world that you are not in a position to pay what you’d borrowed.
Now what happens is this gives you a chance to either pay off a portion of your debt over a period of time or even get some of your debts eliminated altogether. Now, don’t smile ear to ear – declaring bankruptcy has immense negative connotations too, in the form of a scarred credit history and even losing some of your precious possessions.
Troubles with Creditors
If your creditors are giving you a very hard time with their incessant phone calls and menacing visits while you are running from pillar to post trying to scrounge up some money, you can always get in touch with a chapter 7 bankruptcy lawyer northern Virginia to have something positive in your corner. Since bankruptcy is not easy waters to navigate, you will have expert help at hand in the form of your lawyer who will explain all the legal intricacies to you in a simple manner which will help you understand the associated legalities easily.
Most people prefer to go for chapter 7 bankruptcy. In Northern Virginia, you can seek help from RNN Law MD to get an expert lawyer who will hold your hand all the way to a sensible solution out of this fiscal mess.
Chapter 7
Also called Liquidation Bankruptcy, Chapter 7 has its pros and cons. In this type, the debtor can resort to selling off some of his possessions to repay some part of the debt. That doesn’t mean that you have to sell off your house or your car. These and some other assets are exempt from liquidation as the court is aware that you’d require them to live while you earn to pay off the debt.
However, the list of exempted possessions may differ from state to state. An experienced attorney will be able to search and give you a list of what you can keep and what you have to sell off.
One thing, as mentioned before, declaring Chapter 7 can seriously damage your credit history and can stay on your credit report for up to ten years.
Filing for bankruptcy may be a hard thing to do, but once you announce your inability and get expert help, you get the support to keep those pesky creditors at bay. No more phone calls, no rapid heartbeat. You can then breathe a sigh of relief and get your financial affairs in order so that you are able to repay in a stretched out time period.