Understanding the Different Types of Bankruptcy


Personal debts can become so insurmountable that after careful consideration and financial counseling you’ve decided to file for bankruptcy. Richmond, VA consumers who have no other option but to file for bankruptcy need to work with an experienced attorney who understands the court system and knows how to best present your case to a judge. However, it’s always in the consumer’s best interest to educate themselves about bankruptcy before working with law professionals so that the bankruptcy terms and conditions don’t sound so complicated and confusing.

Chapter 13 Bankruptcy
One of the most common types of personal bankruptcy involves Chapter 13 bankruptcy. With this claim your debts are renegotiated and a repayment plan is put into place. The judgment in this case will determine whether you have three or five years to repay your creditors based on your current income. During the duration of a Chapter 13 bankruptcy, Richmond VA creditors and any out of state creditors are disallowed from starting or continuing any collection efforts. If you’ve been being harassed by collectors, this will stop upon successful filing of Chapter 13.

Chapter 7 Bankruptcy
This option does not involve a repayment plan, but rather allows you to liquidate your assets in order to repay creditors. It’s extremely important to have an attorney with a Chapter 7 filing because this type of bankruptcy can lead to loss of property. There are some property exemptions that prevent the trustee from liquidating certain asset and those can vary by state.

Individuals filing bankruptcy in Richmond, VA will often deal with Chapter 13 or chapter 7 bankruptcies. However there are a few other bankruptcy filings on the books and a lawyer can advise you on the best filing for your case. It’s a good idea to educate yourself before speaking with an attorney so that you understand the terms used and process of filing for bankruptcy.

Worried about dire results of bankruptcy? In Richmond, VA, you should know your rights and responsibilities. Get info from Bankruptcylawva.net.