If you are very new to the legal world and financial issues, it is likely that you come across this word bankruptcy for the very first time. However, to know what is chapter 7 bankruptcy in Virginia, you should understand what bankruptcy is first.
The state of being bankrupt is when the individual does not have any money or other means to repay his or her debts. This is a very simple and a common definition of bankruptcy. Chapter 7 bankruptcy is a legal type of bankruptcy in Virginia in which the party gets to wipe out his debts by liquidation of all his assets.
Chapter 7 Bankruptcy legal terms
The person who had taken debts and is unable to repay now and is filing a bankruptcy is called a debtor. All the parties, the banks and the credit card agencies who have given the money: the credits and the loans are all called your creditors. Liquidation is when all the debtor’s properties are sold out and converted to money.
How and when chapter 7 bankruptcy works on your advantage
This type of bankruptcy may save you from your credit card bills and other unsecured loans. When you have a huge amount of outstanding payment due in your credit card and other loan dues which charges you interest on huge rates and you are unable to pay off the debts, this could be an option.
When you file a chapter 7 bankruptcy and even if you do not have enough asset to bail you out from this situation, then it can save you completely from this situation and debts, in most cases.
Non-dischargeable debts in Chapter 7 bankruptcy
There are certain debts or financial commitments that cannot be exempted in a chapter 7 bankruptcy. They are –
- Alimony and child support
- Fraudulent debts
- Educational or student loans
- Certain taxes and some charges.
This article carries all the basic information of the chapter 7 bankruptcy in Virginia. To know more about this, you could take the help of the talented and experienced attorneys of the Denbigh Law Center, who specialize in the Virginia bankruptcy law and can help you file a chapter 7 bankruptcy Newport News, Hampton, Yorktown and in and around.
However, bankruptcy is not always the best option. The lawyers of Denbigh Law Center never recommend filing it unless and until it is the only option left.