What is a Chapter 7 Bankruptcy in Virginia?
Chapter 7 Bankruptcy is called a “liquidation” bankruptcy. The purpose of filing a Chapter 7 case is to obtain a discharge of liability on your existing debts.
When you file for Chapter 7 bankruptcy you can wipe out debt from:
- Credit cards
- Store loans
- Checking accounts overdrafts
- Payday Loans/Cash Advances
- Personal loans
- Medical/dental bills
- Income tax obligations more than three years old
- Your mortgage
- Your car payments
Some debts cannot be discharged in a Chapter 7 such as:
- Certain tax obligations (less three years old; 941 taxes; sales and use taxes)
- Child support and spousal support
- Court-ordered fines and restitution
- Student loans
- Debts for personal injuries caused by your driving while intoxicated
- Debts obtained through fraud or deception
Filing a Chapter 7 Bankruptcy in Virginia is usually a quick and painless process. In a Chapter 7 unless your property is exempt through Virginia state exemptions, the trustee can take your property and liquidate it for the benefit of your creditors. Most people do not have assets beyond assets that are exempt. You should consult a bankruptcy attorney for a careful evaluation of your property and available exemptions.
Get A Free Consultation With One Of Our Bankruptcy Lawyers.
If you are struggling with debt, but aren’t sure whether a Chapter 7 or Chapter 13 is the best option for you, we would be happy to speak with you and give you legal advice. We do not charge a consultation fee for bankruptcy cases.
