Whether you live in Virginia or anywhere else in another state and no matter what your immigration status, you are allowed to file for Chapter 7 bankruptcy if you qualify. Chapter 7 bankruptcy allows the person who is filing to eliminate their secured debts. However, unsecured debts don’t fall into the same category and they must be paid off. Examples of unsecured debts are the following:
- Credit card debts
- Medical debts
- Motor vehicle loans
However, there are some debts that do not fall under Chapter 7 bankruptcy, such as student loans, some types of taxes, and child support. Another name for Chapter 7 bankruptcy is liquidation bankruptcy.
How do you qualify for Chapter 7 bankruptcy?
To qualify for Chapter 7 bankruptcy, your income must fall below your state’s median income. As soon as you file for Chapter 7 bankruptcy, a hold will be placed on your finances and your creditors will be notified. That means that your creditors will not be allowed to go after you legally. You will then pay your Chapter 7 debts from your assets, which have been liquidated.
If you are wondering who qualifies to file for Chapter 7 bankruptcy, as long as you own property in the United States or if you are a permanent resident, you are allowed to file for Chapter 7. With that said, however, you must meet certain criteria before your debts can be discharged. They are:
- As discussed earlier, your income must be below the state’s median income. The only exception to this is if you are a disabled veteran or your debts primarily stem from your business.
- If you have previously filed for bankruptcy within a certain time period, it is likely that the court will dismiss your case or if the court has reason to believe that you are cheating creditors.
- You are a naturalized citizen.
- A corporation is not allowed to file for Chapter 7 bankruptcy.
Solid advice from a Virginia bankruptcy attorney
If you are starting to file for Chapter 7 bankruptcy, a trustee from the Virginia bankruptcy court will review your paperwork to determine if any of your property can be sold and the money distributed to your creditors. If that is not the case, your case will proceed. The counsel of a knowledgeable Virginia bankruptcy attorney may help you and the attorney’s guidance may give you hope for the best possible results and a bright future.