You’re looking to get out of debt in the shortest amount of time, and you’ve heard that Chapter 7 bankruptcy is the way to go. It takes about four months from filing to discharge, which means you can get back to normal in Waynesboro that much more quickly. Before you file Chapter 7 bankruptcy Waynesboro VA, however, you need to learn a bit more about how it works.
Chapter 7 focuses around liquidation of assets in order to pay off creditors. That is to say if you have any assets that have positive equity, you have to sell them off via the bankruptcy trustee to satisfy your debts. If you have little to no assets, you are still able to file for Chapter 7 and obtain a discharge, even though you had nothing to offer your creditors.
One aspect of filing for Chapter 7 bankruptcy Waynesboro VA is the fact that the bankruptcy laws tend to use state exemption laws. Exemption laws are a series of state laws that allow you to protect certain assets from creditors. If you have a car that is valued well underneath the exemption, you can keep it without worrying about losing it to creditors.
If you are still concerned about losing your car because it’s newer but you still make payments on it, don’t be. Your car has no value to the court because of the outstanding balance. There is no value in taking it to sell because the creditor would have to be paid off, and there would be little left over, if anything. Instead, you have the option to do what is known as reaffirmation of debt provided you can prove that you are capable of making payments going forward. The only time the court is interested in your car is when you have collector cars of value, or a high dollar vehicle that you’ve mostly paid off and has positive equity.
Ultimately, your financial situation is a unique one, and it’s best to set up a consultation with a bankruptcy lawyer to find out more information. She has the knowledge and capability to look at your finances and determine which chapter of bankruptcy you need to file under.
You can contact Carltonlegal services to know about various services for Chapter 7 Bankruptcy Waynesboro VA. To know more about the company, visit the website.