For erasing all your debts, one can use the Chapter 7 bankruptcy rule and in the USA many people have already used this law. You can discuss with any Chapter 7 bankruptcy lawyers at John W. Lee P.C law firm available in Virginia. If you have any credit card debt, car loans, medical debt, or payday loans due on you, then you can take the benefit.
People who have more amount of debt than his capacity to repay then they can consider using Chapter 7 bankruptcy law and contact any lawyer in Virginia.
What is a Chapter 7 Bankruptcy?
When pursuing a Chapter 7 bankruptcy you will need to provide your financial status information for areas of current income, cash on-hand, savings, investments, expenses and debts. It involves researching and filing numerous forms stating your income, spending habits, whether you have savings and status of your debt to a Virginia bankruptcy court. You will also need to submit your recent history of tax returns.
A trustee related to bankruptcy is going to review all the details and documents that you have submitted to the court in Virginia. They will then hold the meeting of creditors, and ask you a few basic questions regarding your financial situation.
You will then receive a notice in the mail from the Virginia Bankruptcy Court informing you that the court has accepted your application and granted a bankruptcy discharge.
Make sure you fill out the form completely and take all the necessary steps that are needed to declare the bankruptcy petition. The court in Virginia will then accept the application and all the debts that are eligible will be erased.
The following are examples of debts that will can be discharged through bankruptcy:
- Car loan deficiencies
- Credit card debt
- Judgments from your credit cards and the agencies for debt collection
- Medical bills
- Payday loans
- Personal loans
- Utility bills
However, the following few debts cannot be erased through Chapter 7 Bankruptcy law:
- Child support
- Other debts related to government fines
- Recent tax debts
- Student loans
All the information provided above is the basic information that you should know before you file for bankruptcy. However, if your case is a little more complicated then it will be better to consult any bankruptcy-related lawyer in Virginia and get his advice before you take on the benefits of a Chapter 7 Bankruptcy.