Things a Debtor Can Learn From a Bankruptcy Law Attorney in Portsmouth, VA
The personal finances have not been all that great during the last couple of years. In spite of good intentions and trying various methods, things are only getting worse. At this point, it makes sense to schedule a meeting with a Bankruptcy Law Attorney in Portsmouth VA and find out if filing for some form of personal bankruptcy is possible. Here are some of the things that the attorney will help the client understand.
Not Everyone Can File for Chapter 7 Bankruptcy Protection
In the last couple of decades, changes to bankruptcy laws have changed. People who would qualify for a Chapter 7 bankruptcy in years past no longer meet the minimum qualifications. The Bankruptcy Law Attorney in Portsmouth VA will explain how certain types of debts cannot be included in this type of action except under a narrow range of criteria.
To determine if the client can seek this type of protection, the attorney will take a close look at the types of debts involved. If they are all unsecured debts, this approach is definitely a possibility. If priority debts like back taxes, past-due child support, and several other obligations are part of the mix, considering another form of bankruptcy is in the best interests of the client.
How Does a Chapter 13 Bankruptcy Work?
If the client does not meet the specifications for a Chapter 7 bankruptcy, there’s a good chance of being able to file a Chapter 13 action. This approach does not settle debt withing a few months. Instead, the debtor is placed under the protection of the court and tenders monthly payments to a court trustee. The trustee distributes the funds to the creditors based on a plan approved by the court.
The period may last three or five years. Priority debts are settled first, then all or part of the unsecured debt is paid. If any unsecured debt remains outstanding at the end of five years, it is discharged.
If there seems to be no way to pay off debt, Get additional info here from a bankruptcy attorney. It will not take long to assess the client’s financial condition, identify the best course of action, and file the proper documents with the court. Once that is done, the debtor will be on the way to a better financial future.