Well, here you are. You gave it your best shot and probably played by all the rules in your bid to avoid insolvency, and yet…here you are. As distasteful as it may sound to the average individual who has no adequate knowledge of the term, opting to file for bankruptcy is not always the end. In fact, to some, it actually opens the road to a fresh start.
If you or your business are currently struggling with high debt payments, receiving constant calls from your creditors or collection agencies, facing foreclosure, or are at risk of having your property repossessed, filing for bankruptcy may just be your best way out.
The laws regarding bankruptcy allow debtors, who are completely or partially unable to pay their debts, to rid themselves of these obligations and start afresh. Federal laws, and also Virginia state laws, necessitate some requirements which may affect your ability to file for bankruptcy. An attorney can help you navigate through these laws so you can understand how they apply to your situation.
Bankruptcy attorneys in Salem offer professional legal counsel and services to clients who are currently undergoing a financial crisis. Typically, there are about six types of bankruptcy, but three of them are particularly more common:
For instance, if you are seeking debt relief, a common route is to file under the terms of Chapter Seven insolvency, which allows for the liquidation of your non-exempt assets for use in discharging some of your debts. Chapter 7, however, does not allow for a total debt wipe out and not everyone is eligible to file under these terms.
Another option for you is to file under the Chapter 13 provisions, which allows for a structured debt reduction and management through a regulated payment plan over an agreed period. In exchange, your creditors will not make any attempt to recover the debt by any other means other than the agreed terms. This provision is usually used by those who fail to qualify for debt relief under Chapter 7.
If you own a corporation or partnership, you can opt for a supervised reorganization of the business as a means to obtaining debt reduction. This is usually filed under the provisions of Chapter 11.
Sure, the law doesn’t require you to have an attorney when filing for insolvency, but with all the legal jargons being thrown about, along with the huge paperwork involved, you really can’t afford not to. Hiring an experienced law firm in Salem, like The Law Office of Matthew T. Schottmiller, PLLC, not only helps you understand your eligibility for each chapter, but also ends those harassing calls from creditors through an automatic stay.
About Bankruptcy. United States Courts
How to File for Chapter 7 Bankruptcy. All Law
Alternatives to Chapter 7. United States Courts Service