Chapter 7 Bankruptcy in Richmond

Our Richmond Bankruptcy Lawyer May Be Able to Help

A Chapter 7 bankruptcy allows you to wipe away most of your unsecured debt and get a fresh start - debt free. When you file Chapter 7 you do not have to restructure your debt like in some other forms of bankruptcy, instead it is literally forgiven by your creditors. If you have become overwhelmed with credit card bills and other types of debt, Chapter 7 could give you the chance to reclaim financial stability. At Bruce W. White, P.C., our Richmond bankruptcy attorney has the experience and skills to help you achieve this.

Contact us today to learn more about how we can assist you.

Can I File Chapter 7 Bankruptcy?

Most people are eligible to file a Chapter 7 bankruptcy petition and, in fact,  most people do file a Chapter 7 case versus a Chapter 13 petition -- a repayment bankruptcy case..  Over the past years, Chapter 7 petitions were filed over 60% of the time, as compared to the repayment bankruptcy plan of Chapter 13.  Most people do not need a repayment plan; they need a total debt relief solution allowed under Chapter 7.

There are restrictions, qualifications and most importantly, strategic considerations in filing for bankruptcy under Chapter 7.    

RESTRICTIONS: You may only file back to back Chapter 7 cases every 8 years, so a prior Chapter 7 filing may prevent you from filing a Chapter 7 now.   If you have filed a prior Chapter 13 case previously, the time restriction is 6 years.  If a Chapter 7 cannot be filed, you can still file a Chapter 13 petition and stop collection actions, including harassing phone calls, judgments,  and garnishment of your pay check or bank accounts.

QUALIFICATIONS:   In most cases, you may only file a Chapter 7 if your Gross Income is below a certain amount, based on the size of the family.  This limit is adjusted periodically, and is now about $64,800 per year for a single person, and about $82,900 per year for a  family of 2.  This qualification is known as the “Means Test”.  If your income exceeds the limits set by the means test, you may need to consider filing a repayment plan under Chapter 13.  Visit the US Department of Justice's website to learn more.  

 STRATEGIC CONSIDERATIONS:   While you may file a Chapter 7 bankruptcy case, it may be a huge mistake if you have real estate or personal property with too much equity.  In Virginia, there are laws to protect your property up to a certain amount.   If you own real estate with considerable equity in it (value of property minus the debt against the property), the Chapter 7 Trustee could sell your house and pay the money to your creditors.   In a similar way, if you own cars, boats or other things of value, you could lose them in a Chapter 7 bankruptcy filing.   Protecting your property is probably the most important task that your bankruptcy attorney will do in your case, and is most likely the number one reason you should hire a competent, knowledgeable bankruptcy attorney.  If a Chapter 7 bankruptcy case would cause a loss of property, then seeking protection from creditors may be accomplished by the filing of a Chapter 13 case.   

Contact an Experienced Bankruptcy Attorney Today

If you feel overwhelmed because of high debt balances and are unable to pay your monthly bills, filing Chapter 7 may be the fresh start that you need. There are requirements you must meet, and our Richmond bankruptcy lawyer, Bruce W White, will be happy to discuss your individual situation with you.

Here at Bruce W. White, P.C, we will gladly answer any questions you may have and guide you through the process of helping you put your financial future back on track. Call us at (804) 288-4328 now for a free telephone consultation.