What happens to my debts when filing for Chapter 7 Bankruptcy?

When you file for Chapter 7 bankruptcy in Virginia, all your debts are discharged, or forgiven. This means that creditors are no longer able to pursue you for payment. However, certain types of debts are not discharged, such as student loans, child support or alimony payments, and criminal fines. When filing for Chapter 7 bankruptcy, you must first fill out a Bankruptcy Petition, including information about your income, assets, and debts. Once the petition is submitted, an automatic stay is put in place, which prevents creditors from contacting you or attempting to collect payments from you. Next, you must attend a meeting with your creditors, during which a trustee will review your financial situation and decide whether or not you should receive a discharge. The trustee will also decide which of your assets can be sold to pay off your debts. If the trustee grants a discharge, the debts specified in your petition are cleared, and creditors are no longer able to pursue you for payment. In addition to the discharge of debts, filing for Chapter 7 bankruptcy in Virginia also comes with certain restrictions. For example, you may be prevented from certain activities such as opening new lines of credit or taking out large loans. You may also be required to attend credit counseling courses. Although filing for Chapter 7 bankruptcy can provide a fresh start financially, the process requires careful consideration and should be done with the guidance of an experienced bankruptcy lawyer.

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