The decision to file a bankruptcy case should not be done in haste. Many debtors seek relief from lawsuits and wage garnishments and filing can help but the process can be lengthy. Virginia residents who want to file might see the help of a Prince William County bankruptcy lawyer. These pros know exactly what to do in this situation. They can assist with determining which type the individual should file based upon their personal situation.
There are generally two types that individuals can file, Chapter 7 or Chapter 13. Chapter 7 is considered a liquidation. All assets of the individual or couple are sold to pay outstanding debts and the remainder of the debts are discharged. This is not always a good choice for homeowners, as homes are often an asset that is sold. Couples may have to give up any cars they own besides their primary vehicle. This can place further hardship on the family.
The process of reorganization is conducted by filing a Chapter 13. Many of the debts owed are paid for through monthly payments. These are paid to the trustee for the state. This allows the debtor to keep some property such as homes and a second car. Payments are income based and can be modified later in the plan if needed.
Regardless of the type of bankruptcy filed, there are fees to be paid to the lawyer handling the case. This is usually carried out by paying an initial retainer and the rest of the fees are included in the bankruptcy payments. Monthly payments should be paid every month and on time. Creditors cannot harass the debtor during the bankruptcy period.
After a specified amount of time, debts that remain are discharged and the creditor's responsibility for those debts listed in the case has ended. Monthly payments to creditors for homes or vehicles will continue unless they were satisfied in the bankruptcy.
Some debts are not allowed to be discharged. These include student loan debt and tax debts. There are times when student loans can be involved in a bankruptcy, but this is rare. There are other methods of dealing with student loans.
Student loan creditors offer extended payment plans for those who owe. Income based payments are also available. When a debtor has paid on their student loans for thirty years any amount left is written off. There are other ways of reducing this type of debt, such as filing for a disability waiver. Those who work for non profit agencies can have part of their loans forgiven. If a loan has gone to a collection agent, it still cannot be included in a filing.
Bankruptcy does damage the individual's credit rating and can remain on their credit report for ten years. In some cases, such as a Chapter 13, credit scores can actually go up since the person is making regular payments. A poor credit score can result in difficulty finding a place to rent, buying a car, or getting a job. However, there are many places that will work with those who have a poor credit score. Filing should be a last resort but it is a breath of fresh air to those struggling with garnished wages and lawsuits.
There are generally two types that individuals can file, Chapter 7 or Chapter 13. Chapter 7 is considered a liquidation. All assets of the individual or couple are sold to pay outstanding debts and the remainder of the debts are discharged. This is not always a good choice for homeowners, as homes are often an asset that is sold. Couples may have to give up any cars they own besides their primary vehicle. This can place further hardship on the family.
The process of reorganization is conducted by filing a Chapter 13. Many of the debts owed are paid for through monthly payments. These are paid to the trustee for the state. This allows the debtor to keep some property such as homes and a second car. Payments are income based and can be modified later in the plan if needed.
Regardless of the type of bankruptcy filed, there are fees to be paid to the lawyer handling the case. This is usually carried out by paying an initial retainer and the rest of the fees are included in the bankruptcy payments. Monthly payments should be paid every month and on time. Creditors cannot harass the debtor during the bankruptcy period.
After a specified amount of time, debts that remain are discharged and the creditor's responsibility for those debts listed in the case has ended. Monthly payments to creditors for homes or vehicles will continue unless they were satisfied in the bankruptcy.
Some debts are not allowed to be discharged. These include student loan debt and tax debts. There are times when student loans can be involved in a bankruptcy, but this is rare. There are other methods of dealing with student loans.
Student loan creditors offer extended payment plans for those who owe. Income based payments are also available. When a debtor has paid on their student loans for thirty years any amount left is written off. There are other ways of reducing this type of debt, such as filing for a disability waiver. Those who work for non profit agencies can have part of their loans forgiven. If a loan has gone to a collection agent, it still cannot be included in a filing.
Bankruptcy does damage the individual's credit rating and can remain on their credit report for ten years. In some cases, such as a Chapter 13, credit scores can actually go up since the person is making regular payments. A poor credit score can result in difficulty finding a place to rent, buying a car, or getting a job. However, there are many places that will work with those who have a poor credit score. Filing should be a last resort but it is a breath of fresh air to those struggling with garnished wages and lawsuits.
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