If you do not see any way out of your current financial situation, Chapter 7 in Richmond may be the best option. Many debtors file for Chapter 7 bankruptcy when they can no longer handle their debts. Bankruptcy legally discharges you from certain debts. This means you will not be responsible for paying creditors. Once you file, creditors are forbidden by law to contact you further about the debts you owe them. Chapter 7 in Richmond the most chosen kind of bankruptcy since it can be completed in six months. You are required to liquidate some of your non-exempt assets which will be sold by a trustee. Examples of non-exempt assets can include family heirlooms, valuable collections, or second vehicles. The money generated from the sales of assets is shared among creditors.
However, news laws enacted in 2005 make filing for Chapter 7 more difficult. The first change includes a new requirement for the debtor to take a pre-filing credit counselling course. The course can be completed online or by phone. You must turn in your certificate of completion along with your petition. Before you get your discharge, you are required to take a financial management class. Another change in bankruptcy law is the Means Test. The Means Test determines your eligibility for Chapter 7 bankruptcy. The Means Test takes your average disposable income from the last six months and compares it to the average in your state. If your disposable income is below the limit, you do not qualify for Chapter 7. The court may make exceptions if you can prove you are a special case.
Here are some tips to keep in mind. Stop using your credit cards before you file bankruptcy. A creditor may request that you still be held responsible for the debt. Never delay filing bankruptcy. Waiting to file will only cause debt to get worse. If you are facing wage garnishing or foreclosure, you can opt for an emergency filing. An emergency bankruptcy case will only require the first two pages out of 50 pages for regular cases. Stop thinking of bankruptcy as negative. Think of the freedom of debt you are going to have after the discharge. Visit Website for more details!
