Chapter 7 Bankruptcy

Chapter 7 bankruptcy is also known as a Fresh Start Program or a Liquidation Plan.

If someone has large amounts of unsecured debt – such as credit card debt, Chapter 7 may be the right choice. Under Chapter 7, all non-exempt property is sold to pay creditors and the remaining qualified debt is discharged – or eliminated.

Sounds Simple?

Chapter 7 bankruptcy may seem simple in theory, but there are several factors to consider before going in. Not everyone passes the mandated “Means Test” to qualify for Chapter 7. Nor is all debt discharged under Chapter 7. Secured debt like (mortgages and car loans), back taxes, student loans, child support, alimony, and debts incurred from DUI or intentional acts like fraud are not dischargeable.

Automatic Stay Protection
Dealing with creditor calls, collections, lawsuits, even foreclosure? Filing bankruptcy stops creditor harassment. Stops foreclosure. Stops it all. Chapter 7 bankruptcy provides immediate Automatic Stay Protection until your case has been discharged. With foreclosure, the stay is temporary, but if your case allows you to keep your home and your discharge allows you to continue making your mortgage payments, you can keep your home.

Bankruptcy is a complicated process, and laws vary from state to state. It’s important to speak with a Virginia bankruptcy attorney to discuss your case.