Bankruptcy Attorney in Charlottesville, Virginia

Families in Charlottesville, VA, are experiencing more debt and stress than in recent years. You may work a full-time job and try to pay your bills but never seem to get ahead. No one expects to drown in debt or go into foreclosure. And, nationally, hundreds of thousands of families are in the same position every year due to out-of-control medical debt. They often end up filing for bankruptcy.

If you are struggling to stay on top of your bills, behind on your mortgage, struggling to pay a medical debt, facing eviction, or worried about losing your car, bankruptcy could be the solution you are seeking. With bankruptcy, you may be able to discharge your obligation to repay some of your debts, and your credit could even improve in the future. Many people who file for bankruptcy report feeling a sense of relief once they enter the bankruptcy process.

I also understand if you are apprehensive about filing for bankruptcy. A lot of people incorrectly feel that bankruptcy is a moral failing. That sentiment couldn't be further from the truth. While it can be tough to navigate this trying time, it's important to know there is a way out.

However, you may still have questions about bankruptcy. What is the difference between Chapter 7 and Chapter 13? Which one can help your situation? What debt can be discharged in the bankruptcy process? Can filing for bankruptcy save your house or car?

What is Chapter 7 Bankruptcy?
Is it the Right Choice for Me?

Chapter 7 Bankruptcy is known as liquidation bankruptcy and is used to clear different types of unsecured debts. If you have fallen behind on your monthly payments, Chapter 7 can give you the option to make affordable payments to repay your debt.

Chapter 7 places a temporary stay on your current debts, which could be the solution you are seeking if you would like creditors to stop calling, garnishing your wages, foreclosing your home, or repossessing your property. Instead, the court takes control of your property and assigns a trustee to monitor your bankruptcy case.

There are bankruptcy exemptions that can allow you to keep your personal property. In total, your Chapter 7 case could take four to six months for your remaining debt to be discharged. However, it could take longer.

What is Chapter 13 Bankruptcy?
How is it Different from Chapter 7?

Chapter 13, on the other hand, is sometimes known as wage-earners bankruptcy. It is bankruptcy for those whose most immediate problem is creditors hounding them, not a lack of income. One thing that many people like about Chapter 13 bankruptcy is that you can keep your home as long as you can repay any amount detailed in the Chapter 13 repayment plan.

Chapter 13, on the other hand, is sometimes known as wage-earners bankruptcy. It is bankruptcy for those whose most immediate problem is creditors hounding them, not a lack of income. The main benefit of Chapter 13 bankruptcy is that you can keep your home as long as you can repay any amount detailed in the Chapter 13 repayment plan.

With Chapter 13 bankruptcy, people have three to five years to settle their debts while using all disposable income to repay their debt. This option can be attractive if you own a home because it allows you time to catch up on unsecured debt while giving you the chance to keep your home. Although, you are required to spend those years living under the supervision of a court-appointed trustee.

If you’ve decided that bankruptcy is your next step, you should consult with an attorney. Bankruptcy is complex, and the Administrative Office of U.S. Courts recommends, on their website, seeking the advice of a qualified attorney.

As an attorney, I strive to educate my clients on their options to have the best outcome.

If you’d like to discuss how bankruptcy can wipe your slate clean, financially the requirements for filing for bankruptcy, or the implications for your family, give me a call. I have over 30 years of experience working with families to explain bankruptcy laws and help them through the bankruptcy process. I help people in Charlottesville, Virginia, and all around the state in Albemarle, Greene, Orange, Louisa, Fluvanna, and Nelson counties.