How Is It Possible to Emerge From Bankruptcy in Three to Five Years?
No one wants to go into bankruptcy. It is the financial version of waving the white flag, surrendering to an adverse situation and giving up everything, right? Well, not exactly and not always. Chapter 13 bankruptcy for individuals and businesses is also called re-organization, a means to hold off creditors in an orderly fashion so that you can pay them what is owed over time. Throughout Virginia, including Leesburg, bankruptcy can be managed in such a way that you can retain ownership of assets such as your home or a car.
The terms of a Chapter 13 filing prevent creditors from contacting or harassing you, still allowing you to make payments to them on a schedule that you can manage. Your income must be sufficient to cover those debts over time, which is determined by the bankruptcy court from examination of your tax returns or transcripts, schedules of assets and liabilities, current income and expenditures, contracts and unexpired leases.
If you are having trouble paying bills but still are earning a living, a Virginia bankruptcy attorney can help you work out a plan to pay off those bills in three to five years. An experienced lawyer working in bankruptcy courts can also counsel you as to when a Chapter 7 (“no asset”) bankruptcy might be a better course of action.
The attorneys at Simms Showers LLP suggest that clients investigate their financial options as early as possible in order to pursue optimal bankruptcy outcomes. Contact the firm to discuss ways to protect assets and achieve a manageable financial condition in bankruptcy court.