Chapter 7 Bankruptcy

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 A Chapter 7 bankruptcy allows you to eliminate most, if not all, of your unsecured debt, allowing you a fresh start - debt free. Chapter 7 will get rid of credit card debts, personal loans, medical bills, pay day loans, past due utility bills, and in many cases, old tax debt.   When you file Chapter 7 you do not have to repay  your debts as required in Chapter 13;  instead your debts are discharged and eliminated by the Bankruptcy Court.  Your creditors are prohibited from further collection actions.  No more harassing phone call or letters.  Chapter 7 stops judgments, payroll and bank garnishments permanently, and repossessions and foreclosure for a short period of time.  You can file a Chapter 7 individually whether you are married or single, or you can file together as a married couple.  If you have become overwhelmed with credit card bills and other types of debt, Chapter 7 could give you the chance to reclaim financial stability. At Bruce W. White, P.C., we have the experience and skills to help you achieve your goal of financial independence.  Call our office to learn more about how we can assist you.

Most people are eligible to file a Chapter 7 bankruptcy petition and, in fact,  most people do file a Chapter 7 case versus a Chapter 13 repayment plan.  Over the past years, Chapter 7 petitions were filed over 60% of the time, as compared to the repayment bankruptcy plan of Chapter 13. In fact, most people do not need a repayment plan; they need total debt relief that Chapter 7 provides. There are restrictions, qualifications and most importantly, strategic considerations in filing for bankruptcy under Chapter 7 that only an experienced bankruptcy attorney can provide. We have filed thousands of Chapter 7 cases and we can help you.   

RESTRICTIONS: You may only file a Chapter 7 case every 8 years.   If a Chapter 7 is not an option for you,  then you can still file a Chapter 13 bankruptcy.  A Chapter 13 bankruptcy will also stop collection actions,  harassing phone calls and letters, judgments and garnishment of your wages or bank accounts.

QUALIFICATIONS:   Generally, you may only file a Chapter 7 if your Gross Income is below a certain amount, based on the size of the family.  This limit is adjusted periodically by the Dept. of Justice, and is currently about $72,700 per year for a single person, and $91,700 per year for a  family of 2.  The process to determine if you can file a Chapter 7 is known as the “Means Test”.  If your income exceeds the limits set by the means test, you may need to consider filing a repayment plan under Chapter 13.  The means test process is something your attorney will do for you based upon information gathered at your initial appointment.

 STRATEGIC CONSIDERATIONS:   While you may file a Chapter 7 bankruptcy case, it could be a huge mistake if you have real estate or personal property with too much equity-- you could lose your property by a forced sale.  In Virginia, there are laws to protect your property up to a certain amount.   If you own real estate with considerable equity in it (value of property minus the debt against the property), the Chapter 7 Trustee could sell your house and pay the money to your creditors.   Similarly, if you own cars, boats or other things of value, you could lose them in a Chapter 7 bankruptcy filing.   The most important task of your bankruptcy attorney is knowing how to protect your property and should be the number one reason you should hire an experienced,  competent and knowledgeable bankruptcy attorney.  We can help you and provide you with the knowledge you need to move forward.

If you feel overwhelmed because of high debt balances and are unable to pay your monthly bills, filing Chapter 7 may be the fresh start that you need.  Bruce W White, will be happy to discuss your individual situation with you.  At Bruce W. White, P.C, we will gladly answer any questions and guide you through the process of helping you put your financial future back on track. Call us at (804) 288-4328  for a free telephone consultation.