Bankruptcy Attorneys Provide Chapter 7, Chapter 13, and Chapter 11 Solutions to Your Debt Crisis in Manassas, VA

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In these tough economic times, it’s not difficult to run into serious financial problems. Without expecting it, life circumstances such as job loss or reduced pay, a health crisis, rising utility costs, property catastrophes, divorce and more can render you unable to pay your bills. Even when you’ve budgeted carefully but your income doesn’t increase, inflation alone can make paying your bills challenging. As you shuffle past due notices, deciding what bills you can or cannot pay each month, you’re regrettably faced with the undeniable truth that it’s impossible to catch up. Now you’re facing financial catastrophe. In this situation, you fear that the following crises may occur, or they have already happened.

This includes:

  • Home foreclosure
  • Car repossession
  • Utility shut off
  • Eviction
  • Wage garnishment
  • Creditor harassment
  • Poor credit score
  • Damaged reputation

Bankruptcy offers overwhelmed debtors a fresh start through Chapter 7, Chapter 13 and Chapter 11 (primarily for businesses) restructuring, reorganizing of assets and payment of debts. However, Virginia makes bankruptcy proceedings and processes extremely complicated. Most require legal expertise for effective resolution of debt obligations. That’s where a Manassas bankruptcy attorney can intervene and guide you toward financial peace of mind.

The Bankruptcy Solution Options and Differences—How to Assess Which One is Right for You

Chapter 7 Bankruptcy in Virginia

Depending on how much money you and your family make, you may qualify for Chapter 7 relief. For most people filing for Chapter 7 bankruptcy, they do not lose any of their assets.  Exemption laws allow you allows you to retain some assets identified by bankruptcy law as “necessities of modern life” such as motor vehicles, clothing, household goods, appliances and furnishings, pensions, professional tools or equipment, public assistance benefits, and unemployment compensation.  Exemption law is a complicated area that a Manassas Law bankruptcy attorney can explain and assist you through the process. Once you’ve completed the Chapter 7 bankruptcy, you are permanently released from further debt obligations.

Chapter 13 Bankruptcy in Virginia

In this case, the judge structures a repayment plan that assures creditors that your debts will be paid, in part or in whole. Because you have the income to pay non-exempt debts, foreclosures and repossessions are halted in exchange for your scheduled, contractual promise to payments. The downside of Chapter 13 is that to retain your exempt property and assets, but you must pay your unsecured creditors as specified by the repayment plan regularly and on time to avoid repossessions and/or foreclosures of secured debt, such as mortgages and car loans. If you fail to make payments on time, repossessions and/or foreclosures will proceed.

Chapter 11 Bankruptcy in Virginia

This form of bankruptcy is primarily for the purpose of helping corporations, partnerships and limited liability companies (LLC) reorganize their business affairs, income, expenses and debts and still retain profits. As this process mandates, the business pays creditors through a debt repayment plan while continuing to operate. After you have completely paid all unsecured creditor payments, any other debts are permanently discharged. A Chapter 11 bankruptcy is the most complex, costly and lengthy of all bankruptcy proceedings. Therefore, debt management alternatives should be carefully analyzed and explored to determine if it is the best option for a business.

Bankruptcy Summary

Chapter 7 bankruptcy is for debtors with insufficient income to pay their debts.
Chapter 13 bankruptcy is for debtors with sufficient income to pay debts who want to retain the non-exempt property.
Chapter 11 bankruptcy is for businesses that want to retain profits and continue to operate while paying creditors.

If debt worry consumes you so much that you can’t sleep at night and are unable to enjoy life, the experienced Chapter 7, Chapter 13, and Chapter 11 bankruptcy attorneys at Manassas Law Firm can help immediately.

For more information, check out our post: Will Bankruptcy Clear all Debt?

Experienced Bankruptcy Law Firm Helps People Struggling with Debt in Prince William County and Surrounding Area

While sometimes the person causes a debt crisis by poor money management and uncontrolled spending, more often it’s because of unexpected circumstances. And it certainly doesn’t mean you’re irresponsible or a bad person. Though we wish we could control everything in our lives, many situations are out of our control. But there’s something you can control now. Whatever got you into this mess, the Manassas Law Group can offer reassurance and immediate help to halt foreclosures, repossessions, evictions, and creditor harassment. As your bankruptcy attorneys, we’ll help you eliminate or restructure your debts so you can regain solid financial footing.

For help to decide whether you should file for bankruptcy and which option is right for you, under Chapter 7, Chapter 13 or Chapter 11 relief, a Manassas Law Group bankruptcy attorney will respectfully listen to your debt problems and explain the legal strategies and options that will best resolve your pressing financial issues. Call 703.361.8246 today or send us a message on our contact form to schedule your free, no-obligation initial consultation in our downtown Manassas office.