Harrisonburg bankruptcy lawyer
If you are considering filing for bankruptcy, then you have a lot of questions. A Harrisonburg bankruptcy lawyer can help you answer your questions, and that’s what we’re here to discuss today. If you’ve never filed for bankruptcy, then you need to understand the basics of the concept of bankruptcy.
How does bankruptcy work?
Bankruptcy and how it works depends heavily on the type of bankruptcy that you as an individual are filing. Corporations have their own types of bankruptcy. Many debtors file a Chapter 7 or Chapter 13 bankruptcy. Chapter 7 is to discharge qualified debt; qualified data is usually a credit card balance in medical bills. After this debt has been discharged, a bankruptcy trustee appointed by the court sells assets that you cannot protect with a bankruptcy exemption. These assets are then used to pay back the creditors.
Chapter 13 bankruptcy means you keep all of your property, but in exchange, you must pay back some or all of your debts using a repayment plan that the court decides. Chapter 13 lets you restructure debt, catch up on back taxes and missed mortgages, car loans and support payments for domestic living situations.
Who is allowed to file for bankruptcy?
All types of bankruptcy have financial requirements that have to be met, but technically, any individual, married couple or business entity may file for bankruptcy. Chapter 13 bankruptcy is not available to businesses, however, chapter 7 is. You should discuss with the Harrisonburg bankruptcy lawyer about the type of bankruptcy that is best for you and your family, or your business if you’re a business entity.
Chapter 7 is a quick bankruptcy process and takes about three months to complete; however, chapter 13 takes 3 to 5 years due to a repayment plan.
How much does bankruptcy cost?
Cost can always change however, the current court filings as of December 2020, is $338 for a chapter 7 and $313 for Chapter 13. If you hire a Harrisonburg bankruptcy lawyer, there will be lawyer fees that are dependent upon the case’s complexity, but you can usually pay your lawyer as part of your payment plan depending on the type of bankruptcy you file for.
Will bankruptcy affect your employment in any way?
Bankruptcy cannot affect your current employment or future options; it can, however, affect you if you are one of the exceptions — if you are military and require a security clearance, then financial instability might mess up your employment opportunities or your clearance. If you have any questions about bankruptcy and how it might affect your employment if you require security clearance or you are military, speak to a Harrisonburg lawyer about your bankruptcy options.