Personal Bankruptcy typically involves two types; a Chapter 7 Petition or a Chapter 13 Petition. The Chapter 7 Petition is what most folks likely consider as "Bankruptcy". The outcome of a Chapter 7 is to have your unsecured, non-priority, debt discharged. Please understand that, typically, Student Loans, support payments and taxes are not dischargeable in bankruptcy. A Chapter 13 Bankruptcy filing tends to be much more complex than a Chapter 7 in that it involves a repayment plan. In Eastern Virginia your repayment plan may consist of repaying a minimum of 1% of your unsecured debt up to 100%. The length of the repayment plan will last between 36 and 60 months. As with most things associated with the law, there are always exceptions, and this is another example. We'll talk about the length of your repayment plan when we speak more in depth about Chapter 13's. However, while there is a repayment plan it is (1) based on what you can afford to pay, and (2) includes several provisions that can prove helpful. For example, with a Chapter 13 Petition you can handle any arrears that you may have, i.e., if you've missed any payments then you can make them up under the Chapter 13 Petition.
I will use the next several postings to talk about the various parts of a normal Chapter 7 Petition. The topics will follow, hopefully, the following list:
- Identifying your creditors;
- Inventorying your property; real property versus personal property;
- Student Loans;
- Mandatory counseling classes;
- The Means Test;
- I'm a business owner, does that matter?
Wishing each of you the safest and happiest of holidays! ... once the holiday madness passes, if you would like to talk, please, give us a call....(757) 410-9263!
