DISCHARGING YOUR DEBT IN VIRGINIA
DEDICATED VIRGINIA BEACH BANKRUPTCY LAWYER
If you are behind on your mortgage payments, owe an overwhelming amount in credit card debt, or have any other outstanding debt, you may want to consider bankruptcy. This can help to wipe your slate clean of many different kinds of debt. What kind of bankruptcy you file for affects what types of debts can be discharged. As there is a lot at stake, we recommend that you consult with an experienced Virginia Beach bankruptcy attorney who can go over your options with you. To start moving toward a healthier financial future, we at strive to give you the legal counsel you deserve.
WHICH DEBTS ARE DISCHARGED IN CHAPTER 7 BANKRUPTCY?
Chapter 7 bankruptcy will often clear away most, if not all of your debt. The debts that can be discharged include debts that you owed before you filed; any new debt cannot be discharged through bankruptcy. This liquidation bankruptcy usually discharges all your unsecured debt, liquidating your assets to satisfy creditors. After you file, it will usually take four months for the whole process to be completed, after which all your debt can be discharged. Below are some of the kinds of debt that are discharged in Chapter 7:
- Credit card debt
- Medical bills
- Collection agency accounts
- Past due utility bills
- Tax penalties and back taxes
- Business debts
- Traffic accident claims
- Personal loans from family, friends, and employers
Student loans are almost never discharged. Court ordered child support payments and alimony must also still be paid. Some taxes cannot be discharged as well, depending on the circumstance. Court fines and unscheduled debt are some of the other debts that cannot be erased. Any fraud or criminal activity (such as an auto accident claim due to driving under the influence) can disqualify these debts from being discharged.
WHICH DEBTS ARE DISCHARGED IN CHAPTER 13 BANKRUPTCY?
In Chapter 13 bankruptcy, you will be repaying a portion or most of your debt. If you want to keep your house, your payment plan will be restructured to enable you to keep up on paying your mortgage, as well as paying off any arrears and attendant fees.Chapter 13 will often include repayments for property taxes and car payments as well. If you owe more than the market value of the car, and you bought it at least 910 days ago, then it is possible that the excess you owe can become unsecured debt. After the period of Chapter 13 bankruptcy (about 3 to 5 years), your debt will most likely be completely discharged. Usually it is the nonpriority unsecured debt that will be discharged, such as the following:
Credit card debt
- Medical bills
- Personal loans
- Older taxes
- Breach of contract or negligence debts
There are some kinds of debt that can only be discharged under Chapter 13 bankruptcy and not Chapter 7 bankruptcy. These include:
- Property damage that was willful and malicious
- Debt accrued for paying nondischargeable taxes
- Some divorce or separation debts
Recent taxes, spousal support, and child support must all still be paid under this form of bankruptcy as well. Criminal fines (unfortunately this covers traffic tickets too) cannot be discharged. Any fraud can disqualify debts from being discharged. Any debt stemming from willful or malicious actions against a person must be paid as well. It takes a great deal to get student loans discharged, as one must prove that this debt presents a significant hardship. Talk with a bankruptcy attorney at our firm
FIND OUT HOW A VIRGINIA BEACH BANKRUPTCY LAWYER CAN HELP YOU
You can find the answers you need with regards to discharging your debt at the David McCormick Law Group. We can help you determine if you qualify for Chapter 13 or Chapter 7 bankruptcy, and if either of these options may be beneficial to you. We can also help you find alternatives to bankruptcy, as we understand that each situation is unique. Since 1996, we have been dedicated to serving families in need, helping them move on in life and start afresh. You can get started immediately by filling out a free case evaluation, and you can call to schedule your free initial consultation. Please do not hesitate to contact the David McCormick Law Group today!