When debt has been weighing you down for a long time, the best option that you may have is to go to court and file for bankruptcy. This move will accord you a number of legal protections from your creditors. This legal option was crafted to help consumers who genuinely are not in a position to repay their debts. While it may have benefits, it also has some cons. Therefore, you need to hire a Prince William County chapter 7 lawyer to provide you with legal counsel.
The seventh chapter of the Federal Bankruptcy Act provides for liquidation of assets belonging to consumers who are in distress. Once all the nonexempt assets have been liquidated, creditors are paid off and any unpaid debts forgiven. This is the default form of bankruptcy as both individuals and legal entities can get legal protection under this provision.
Bankruptcy can be voluntary or involuntary. In case of the latter, creditors who are dissatisfied with how the debtor has been servicing their loan can approach the court to have the court issue a bankruptcy declaration. Through this process, creditors can legally recover their debts and claim a tax deduction on any debt that has been written off. It's a win win situation.
It is important to note that not every type of debtor can qualify for this option. This is because many people have misused the process, so legal measures have been put in place to prevent this from happening. For instance, only debtors with little or no income source can qualify. Furthermore, the debtor must have a valuable estate.
The court normally appoints a bankruptcy trustee to supervise the entire process. The trustee will look at the finances of the applicant and make a well-informed decision. For instance, if the debtor does not have any assets of significant value, but has a decent income, this chapter may be overlooked in favor of debt reorganization. The trustee has the discretion to analyze the facts and make a decision.
Debtors can easily get protection from creditors by declaring bankruptcy. This means that creditors will be required to desist from communicating with the debtor for any reason. Any communication must be handled through the trustee. This means that the debtor will sleep easy as there will be no further threatening emails, phone calls or house visits by collection agencies.
Before declaring bankruptcy, consumers should know that their credit will suffer a big blow. The bankruptcy will be listed on their credit report, which will affect their credit rating. This means that borrowing low interest loans will become incredibly difficult. Getting a job, renting a car or renting a house can also be a daunting task.
Experience is, without a doubt, the most crucial factor to consider when searching for a competent lawyer in Prince William County, VA. Experienced attorneys have handled many similar cases in the past, so they are in a great position to help you make a well informed decision. Be sure to also compare fees charged by different attorneys before making a decision. The ideal lawyer should be available to handle your case, so be sure to check their caseload before making a decision.
The seventh chapter of the Federal Bankruptcy Act provides for liquidation of assets belonging to consumers who are in distress. Once all the nonexempt assets have been liquidated, creditors are paid off and any unpaid debts forgiven. This is the default form of bankruptcy as both individuals and legal entities can get legal protection under this provision.
Bankruptcy can be voluntary or involuntary. In case of the latter, creditors who are dissatisfied with how the debtor has been servicing their loan can approach the court to have the court issue a bankruptcy declaration. Through this process, creditors can legally recover their debts and claim a tax deduction on any debt that has been written off. It's a win win situation.
It is important to note that not every type of debtor can qualify for this option. This is because many people have misused the process, so legal measures have been put in place to prevent this from happening. For instance, only debtors with little or no income source can qualify. Furthermore, the debtor must have a valuable estate.
The court normally appoints a bankruptcy trustee to supervise the entire process. The trustee will look at the finances of the applicant and make a well-informed decision. For instance, if the debtor does not have any assets of significant value, but has a decent income, this chapter may be overlooked in favor of debt reorganization. The trustee has the discretion to analyze the facts and make a decision.
Debtors can easily get protection from creditors by declaring bankruptcy. This means that creditors will be required to desist from communicating with the debtor for any reason. Any communication must be handled through the trustee. This means that the debtor will sleep easy as there will be no further threatening emails, phone calls or house visits by collection agencies.
Before declaring bankruptcy, consumers should know that their credit will suffer a big blow. The bankruptcy will be listed on their credit report, which will affect their credit rating. This means that borrowing low interest loans will become incredibly difficult. Getting a job, renting a car or renting a house can also be a daunting task.
Experience is, without a doubt, the most crucial factor to consider when searching for a competent lawyer in Prince William County, VA. Experienced attorneys have handled many similar cases in the past, so they are in a great position to help you make a well informed decision. Be sure to also compare fees charged by different attorneys before making a decision. The ideal lawyer should be available to handle your case, so be sure to check their caseload before making a decision.
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