What is Bankruptcy?

Bankruptcy is a way that individuals and businesses can pay off or eliminate their debts with the help of the federal bankruptcy court. Filing for bankruptcy has allowed many individuals to escape their financial difficulties and work their way back towards financial success.

To learn more about bankruptcy, click on any of the headers below or call (757) 961-3900 to set up a free consultation with an attorney.

Chapter 13

A Chapter 13 is a “wage-earners” bankruptcy. When you file a Chapter 13 bankruptcy, you submit a plan to repay your debts over a three to five year period. The bankruptcy laws determine how much you will pay based on your income and expenses. At the end of the three to five year period, generally, all remaining unsecured debts will be discharged. Chapter 13 can save your home from foreclosure. In addition, Chapter 13 bankruptcy is an option when your income is too high to qualify for a Chapter 7 bankruptcy or when you have significant assets you would lose by filing a Chapter 7 bankruptcy. Chapter 13 can also be an effective way to pay tax debt without incurring additional interest and penalties.

What are the benefits of a bankruptcy filing?

The filing of a bankruptcy petition automatically stops most collection actions such as garnishments, foreclosures, repossessions and lawsuits. This “automatic stay” allows you to have a breathing spell during which you have the opportunity to put your finances in order and try to chart a more promising financial future.