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What Is Chapter 7 Bankruptcy

Bankruptcy Frequently Asked Questions:

What Is Chapter 7 Bankruptcy?

 

When you file for chapter 7 bankruptcy in Virginia, the personal bankruptcy court puts an “automatic stay” on your current financial obligations. This stops your financial institutions from collecting settlements, garnishing your earnings, foreclosing on your home, evicting you, or turning off your utilities, etc.

The trustee’s task is to evaluate your funds and also possessions and to oversee your Chapter 7 personal bankruptcy. They will sell specific property the bankruptcy won’t allow you keep (non-exempt property) and also make use of the proceeds to settle with your creditors. The trustee will additionally prepare and also run a conference between you and your financial institutions– called a “meeting of creditors”- This will be where you and your bankruptcy attorney go to the courthouse to answer questions about your filing. In most cases this takes less then 5 minutes.

The list of property you do not have to sell or relinquish to creditors “exempt property”, as well as the complete worth that you can excuse, differs by each state. Some states let you pick in between their exemption checklist and also the government exemptions. Yet most chapter 7 insolvency cases are “no asset” cases, indicating all of the person’s property is either exempt or there’s a legitimate lien versus the property.

At the end of the bankruptcy process, around 4 to 6 months from your first declaring, the court will discharge your remaining debts (definition you don’t need to pay them anymore). However, some types of financial obligations typically aren’t dischargeable via insolvency, consisting of child support, alimony, court costs, some tax obligation financial debts, as well as most student loans.

Your attorney at Fisher-Sandler will walk you through the whole chapter 7 process during your FREE consultation. We will answer all of your questions and or concerns. If needed we can also file your chapter 7 bankruptcy same day. Call us today at (703) 494-3323 to schedule your consultation and get the fresh start you deserve.

 

 

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