Filing Bankruptcy in Virginia
Bankruptcy is not always the best option or an easy solution. However, in some unfortunate circumstances, some will be left with no other choice but to file for bankruptcy. In such a situation, before you file bankruptcy get to know all the legal formalities, procedures and your liabilities after filing for bankruptcy.
It is always best to discuss your situation with bankruptcy attorneys to know all your options. Attorneys at Denbigh Law Centre never forcefully advocate you into filing a bankruptcy. A discussion on filing bankruptcy always, by default, involves other alternatives too. Their lawyers are highly experienced and they handle their services at its best.
What is a bankruptcy
Though you might have known that bankruptcy is a state in which the party who has taken loans and credits from many, the debtor, who owes more money to others than he can ever replay, even if he sells his asserts.
This state of not having enough money to repay the debts in called bankruptcy. It has much more defined legal implications and a few types too. Each type of bankruptcy has its own set rules and use cases. An attorney will help you decide on which type of bankruptcy should you file according to the Virginia laws.
Mandates and procedures for filing bankruptcy in Virginia
The process of filing bankruptcy in Hampton or other cities of Virginia is governed by the 2005 Bankruptcy Act. According to it while filing bankruptcy there are certain criteria that needs to be met and then certain procedures are followed. They are
- The debtor must have undergone credit counselling at least six months before filing bankruptcy.
- You should submit your income and expenses for analysis.
- After the analysis, you will be recommended whether or not you qualify and for the type of bankruptcy you are suitable for, chapter 7 or chapter 13. This is called a means test.
- If the median of your income for the past 6 months is more than the median income of Virginia, you will have to undergo some more process that is remaining in the means test. If it is below the median, then you qualify to file a chapter 7 bankruptcy.
- Then it is time for paperwork. You need to list down all the financial transactions, income, liabilities, secured and insecure loans and assets of the past 2 years in detail.
The above article covers the basic requirements and procedures that is associated with filing bankruptcy. Taking a professional specialist bankruptcy lawyer Hampton or in the state of Virginia is strongly recommend.