Chapter 7 Bankruptcy For Debt Discharge In Just A Few Months
Chapter 7, also known as liquidation bankruptcy, is a proceeding that is available to most businesses and qualified individuals. It is often an attractive option because it offers immediate relief and can quickly relieve the debtor of the obligation to repay most types of debts.
Many people file Chapter 7 due to medical debt, divorce and job loss. Many others have lost lawsuits because of business failures and other troubles beyond their control.
At Moreton & Edrington, you will find efficient, thoughtful guidance for your bankruptcy case. We will help you determine whether Chapter 7 is right for you and make it as easy as we can for you to get started.
Once you file for bankruptcy, the automatic stay will go into effect. This means that creditors must not try to collect from you until your discharge is complete, a few months later. Prepare for a feeling of freedom and relief when you receive your Chapter 7 debt discharge notice from the bankruptcy court.
Steps To Chapter 7
Debtors commence a Chapter 7 proceeding by filing a petition that discloses all assets and identifies all debts.
In theory, a court-appointed trustee collects and sells all of the debtor’s nonexempt assets and distributes the proceeds to the debtor’s creditors. In practice, however, many chapter 7 cases are filed by individual debtors and are “no-asset” cases.
In a no-asset case, the debtor receives a discharge without surrendering any assets. This may be possible if there are no assets or if the assets are protected from creditors by state and/or federal law. We can help you determine whether the federal or Virginia state asset exemptions are better suited to your possessions.
Will The 2005 Bankruptcy Law Changes Affect Your Ability To File?
Because no-asset cases are so prevalent in Chapter 7 filings, Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act (“BAPCPA”) in 2005 to limit individual Chapter 7 filings to those who have no means to repay their debts. BAPCPA also prevents the discharge of certain types of debts that Congress specially classified for public policy reasons.
Despite the restrictions of BAPCPA, we have helped hundreds of clients find debt relief and a financial fresh start through Chapter 7 bankruptcy. Do not assume you cannot qualify. If you can, we will help you get started as soon as you are ready.
Stop Creditor Harassment And Wage Garnishment Now
Find out if you qualify for Chapter 7 and whether it is the best way to resolve your debts. Please complete the bankruptcy intake form and contact our office for a no-obligation consultation. Let us know if you are approaching divorce and plan to file for Chapter 7 bankruptcy. We can help you and your spouse determine whether it makes the most sense to file for bankruptcy before or after your divorce.
Get answers to your questions about bankruptcy and discuss the truth about common myths regarding it. Call us in Herndon, Virginia, at 703-297-8535 or send a quick, confidential message for a prompt reply and timely assistance.