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Advantages of filing for Chapter 7 bankruptcy

Life for people in Virginia does not always go according to plan. There are many unexpected events that can cause people’s lives to go into a very different direction. People may lose a job, suffer a major injury, develop a disease or have a family member go through a traumatic event. When these things occur, people have to deal with the immediate problem, but they can also cause significant financial troubles as well.

Having to pay for the immediate problem or losing income because of a lost job or needing to take time off can make it difficult to meet monthly obligations. People may then need to turn to credit cards to pay these and put themselves into even more debt. After awhile it may seem like they will never be able to rid themselves of the debt. However, people do have options, one of them being bankruptcy.

Benefits of Chapter 7 bankruptcy

There are different types of bankruptcy for individuals though: Chapter 7 and Chapter 13. Both can help people get a fresh start, but Chapter 7 provides certain advantages in some circumstances.

One is that people are able to keep their future income and many assets obtained after filing for bankruptcy. There is also no limit on the amount of debt that people can have in order to file, but there are certain debts which cannot be included in the bankruptcy. There is also no repayment plan in Chapter 7 bankruptcy and discharge of the debt occurs relatively quickly. This allows people to rid themselves of their past debt and move forward with life.

Bankruptcy is not something that people generally plan for in Virginia, but sometimes unexpected events can force people into the situation. Chapter 7 bankruptcy can allow people to rid themselves of their debt and achieve a fresh start. The bankruptcy process can be complicated and time consuming though. Consulting with experienced attorneys may be beneficial.