If you are facing a financial situation that’s extremely distressing and there appears no way out, there is only one way you can ease your pain. Filing for bankruptcy is not something that those in deep debts are comfortable doing, but in many cases, it is the only option available for those in deep debts.
You can file for bankruptcy under Chapter 7, Chapter 11, or Chapter 13, depending on whether you are filing as an individual, or as a business entity. Chapter 7 bankruptcy is the most common type of bankruptcy and can help you get rid of most of the unsecured and some secured debts. You might have to surrender some of your assets to avail of this relief.
Salient Features of Chapter 7
Filing for Chapter 7 bankruptcy not only helps in creating a financial rehabilitation plan for the future, but also provides you with a major relief that creditors cannot take any recovery steps against you. Those dreadful phone calls will no longer come, and you will be able to focus on rebuilding your finances one step at a time. Using the services of a leading chapter 7 bankruptcy attorney northern Virginia is recommended to be able to complete the complex bankruptcy filing process without any errors.
Before you sign up for Chapter 7 bankruptcy, you must have a long chat with your lawyer on what the law is all about and where you qualify to file for the same. Your chapter 7 bankruptcy attorney Northern Virginia will guide you appropriately by providing all the vital information you need to make a considered decision.
Your attorney will be authorized to speak to all your creditors and provide the details of how your finances will be restructured. A repayment plan will be drawn up by taking into account some of your assets and selling them off to pay off all your debts.
How Chapter 7 Bankruptcy Provides Debt Relief
A few weeks after filing for Chapter 7 bankruptcy, a meeting will be scheduled by the court with your creditors. Your trustee or the person assigned to handle your assets and its sale will ask you some answers and clarifications which must be answered carefully, honestly, and under oath. A successfully filed Chapter 7 bankruptcy ensures a discharge from personal liability of all debts included in the bankruptcy.
Salient Features of Chapter 13
Chapter 13 is the second most commonly filed bankruptcy across the world. This type of bankruptcy puts an automatic stay on all collection actions by creditors. Chapter 13 bankruptcy can be used to create a repayment plan that’s typically spread over three to five years. The payment is made to a court-appointed trustee who looks over its distribution to creditors in a systematic and planned manner.
To make sure that your Chapter 13 bankruptcy filing goes off smoothly and successfully, you can use the services of a lawyer specializing in chapter 13 bankruptcy Northern Virginia.
According to financial experts, Chapter 7 bankruptcy is more affordable and provides faster relief from debts when compared to Chapter 13. However, Chapter 7 may be a better option in specific circumstances. Consult the best chapter 7 bankruptcy attorney Northern Virginia to decide which one is the right plan for you.