Charlottesville Bankruptcy Lawyer
We are living in uncertain times in our country with massive layoffs, mounting debt, and desperate need for financial relief. Even though you lost your main source of income, the bills are continuing to pile up. If you are looking for a Charlottesville bankruptcy lawyer, the attorneys and staff at MartinWren, P.C. can help guide you through this difficult time.
Federal bankruptcy laws offer two general plans for individuals or families seeking a bankruptcy.
One option is a Chapter 7 bankruptcy, which is known as a “liquidation bankruptcy.” This means, in some sense, that your debts will be wiped clean. Just the act of filing a chapter 7 bankruptcy petition will immediately stop incoming calls from harassing debt collectors and creditors, and it will stop any debt collection actions that may be pending against you. Instead, any creditors will be required to work through an independent party, known as a trustee. A bankruptcy trustee will evaluate your income and expenses, as well as your assets. A Charlottesville bankruptcy lawyer will represent you before the trustee and help guide you through this process. If a Chapter 7 is granted, the debts will be forever forgiven.
To file a chapter 7 bankruptcy you will need to attend a financial management class, which can usually be done online. You will be given additional information to help determine whether you are eligible for a Chapter 7 bankruptcy. Some factors to consider include the types of debt that you have incurred and the amount of your income and expenses. If your income is too high, you may be ineligible for a Chapter 7 but could consider a Chapter 13 bankruptcy instead.
A Chapter 13 bankruptcy, also known as a “wage earner’s plan,” allows you to consolidate your debts into affordable payments. Although debts are not wiped clean in a Chapter 13 bankruptcy, there will be a restructuring of your debt over a certain period of time to allow you to make manageable payments to your creditors. The amount and frequency of your payments will depend on your income and debt but it was typically be carried out over a three to five year period. And in many cases, the overall amount of your debt can be reduced. A Chapter 13 bankruptcy may give you the ability to reasonably pay your outstanding debts and avoid harsh collection remedies. So long as you make the required payments, the outstanding debt will be concluded when the payment period ends. With a Chapter 13 bankruptcy you may be able to save your home from foreclosure and cure delinquent mortgage payments over time.
There are certain debts that are not forgiven under either a Chapter 7 or Chapter 13 bankruptcy. Such debts may include student loans, child support arrearages, and most tax obligations. But there may still be options available to you which allow your other debts to be restructured and provide a plan for your financial success. It is worthwhile to speak with a Charlottesville bankruptcy attorney to explore and understand your options.
How to Get Started
Call MartinWren, P.C. today at (434) 817-3100 to have a free consultation with a Charlottesville Bankruptcy Lawyer. We will be happy to discuss your concerns and help you understand your options for moving forward. In this unusual time addressing COVID-19, MartinWren, PC would be happy to meet with you virtually through video conferencing if necessary.