Is Chapter 13 Bankruptcy an option for me if I am self-employed?

Yes, filing for Chapter 13 Bankruptcy is an option for self-employed individuals in Virginia. Chapter 13 Bankruptcy is a type of consumer bankruptcy that allows individuals to keep their property and assets, although the filer must agree to repay their creditors over a period of time, usually a three to five-year plan. To be eligible to file for Chapter 13 Bankruptcy in Virginia, the filer must pass a means test. This test will determine the amount of disposable income the filer has each month and must be used to repay creditors. The self-employed person must make an accurate disclosure of their current income and up-to-date documentation of their expenses. Once the Chapter 13 Bankruptcy is filed, an automatic stay goes into effect which prevents creditors from attempting to collect debts until the court rules on the matter. Creditors must also stop any attempting to take action to repossess any property. A reorganization plan is proposed that will outline exactly how much will be paid out over the term of the repayment plan. Chapter 13 Bankruptcy can provide a self-employed individual with financial relief in Virginia, allowing them to keep their assets and property, while repayment to their creditors can provide them a fresh financial start.

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Is Chapter 13 Bankruptcy an option for me if I am self-employed?

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