What is Bankruptcy?
The power of a Chapter 7 bankruptcy is the permanent elimination of unsecured debt. As with the Chapter 13, it also has the powerful ability to immediately stop legal actions such as repossessions, foreclosures, lawsuits, garnishments and liens. Qualified debt will be eliminated forever. There are several catagories of debt that are not eliminated by Chapter 7 such as child support obligations, student loans, criminal restitution, and some taxes. To determine the advantages and disadvantages of a Chapter 7 for you schedule a free consultation with one of our attorneys.
Chapter 13 allows a “wage earner” or working individual to set up a court-supervised plan to repay debt. Most commonly used to halt a foreclosure and repay missed mortgage payments while also restructuring other debt, Chapter 13 is a powerful tool in helping financially distressed individual keep their home and recover from financial setbacks. The Chapter 13 plan also has the ability to extend the time of repayment of debt and is general structured over a three to five year period.
What Is Bankruptcy? A Path To A Brighter Tomorrow.
You now understand the two types bankruptcy. However, the answer to “What is bankruptcy?” is more complicated then most attorneys would explain. Bankruptcy is a path to financial recovery, which if done properly, can turn paupers into millionaires, save marriages stressed by debt, provide better educational opportunities for your children, and save lives. Yes, financial stress and poor credit can make us poor for life, ruin our marriage, rob our children of a better education and cut should our life. Don’t approach bankruptcy from just the stand point of eliminating debt. Find an attorney that will talk to you about recovering the life you deserve. Recovery is the goal. Start the journey to a brighter tomorrow … today.
The Merna Law Group has offices serving Virginia Beach, Norfolk, Portsmouth, Chesapeake, Suffolk, Isle of Wight, Hampton, Newport News, Yorktown, Williamsburg, Richmond, Henrico, Chesterfield, Powhatan, Goochland.