Are there different types of Chapter 7 Bankruptcy?

Yes, there are different types of Chapter 7 Bankruptcy available in Virginia. For individuals who have regular income and can repay their debts, they can file an ordinary Chapter 7 Bankruptcy. In this type of bankruptcy, the individual must pay a certain amount of their debt and the rest of the debt will be discharged. The court establishes an orderly approach to settling the debts. Those individuals who have limited incomes can opt for a Chapter 7 Bankruptcy that is called a “fresh start”. This is designed to help individuals with far less income by discharging all their debts, or a portion of them. The court determines the amount that needs to be discharged and the debtor may pay a lesser amount than what is owed. For individuals who need more protection from their creditors, they can file a Chapter 7 Bankruptcy using the homestead exemption. This exemption allows them to keep their home or other property even if they cannot pay the full amount of their debt. In Virginia, a debtor can keep up to $5,000 worth of equity in their home when filing for a Chapter 7 Bankruptcy. In some cases, a Chapter 7 Bankruptcy may be mixed with a Chapter 13 Bankruptcy. This is when the debtor has too much income and cannot qualify for a Chapter 7 Bankruptcy. The debtor may be able to discharge some of their debt while still making payments on the other debt. Overall, there are several different options when it comes to filing for a Chapter 7 Bankruptcy in Virginia. Individuals should research their options carefully before deciding which type is best for their particular situation.

Related FAQs

How do I know if I should file for Chapter 7 Bankruptcy?
What are the different types of bankruptcy?
How do I start the process of filing for Chapter 7 Bankruptcy?
What happens to my creditors when filing for Chapter 7 Bankruptcy?
What is a 341 meeting?
Is there a time limit on filing for Chapter 7 Bankruptcy?
Is filing for Chapter 7 Bankruptcy a permanent solution to debt problems?
Can I keep my house after filing for Chapter 7 Bankruptcy?
What is a dischargeable debt?
How do I know if I will qualify for Chapter 7 Bankruptcy?

Are there different types of Chapter 7 Bankruptcy?

Related FAQs

Related Blog Posts