Contrary to popular notions, bankruptcy is not a sign of moral weakness or personal failure. The majority of people who file bankruptcy fully intend to repay their debts, but unable to do so due to circumstances beyond their control. Let us explain how bankruptcy can:
- Stop foreclosure and allow you to save your house despite mortgage default
- Stop wage garnishment so you can keep the current income you need to live on
- Stop bank account levies and other aggressive actions by creditors
- Stop creditors’ harassing phone calls and other forms of intimidation
Filing bankruptcy does carry consequences, but it can allow you to bounce back and restore your credit more quickly and decisively.
Deal With Your Unmanageable Debt
Filing bankruptcy, depending on your circumstances, may be the most honest, responsible way to deal with crushing debts resulting from:
- Medical expenses
- Job loss or income reduction
- Business failure or slowdown
- Divorce or death of a spouse
- Natural disaster or home fire
- Overuse of consumer credit
- Mortgage troubles
Perhaps you have been trying and trying to pay off your debts and feel you are spinning your wheels. Filing bankruptcy does carry consequences, but it can allow you to bounce back and restore your credit more quickly and decisively. Many bankruptcy filers are able to purchase cars and homes soon after the bankruptcy is complete.
Determine The Type Of Bankruptcy Suitable For Your Circumstances
Once you decide that bankruptcy will be the most effective debt relief solution available, you and your attorney will determine together what type of bankruptcy is right for you.
Chapter 7 bankruptcy allows debtors to discharge unsecured debts, such as most medical bills and credit card debts. In addition, filing a bankruptcy petition puts an “automatic stay” into effect, an immediate halt on creditor harassment, collection efforts, wage garnishments and home foreclosure. To qualify for Chapter 7 bankruptcy, however, you must meet certain income restrictions. Your eligibility is determined by a “means test,” which measures your income against the state’s median average.
Chapter 13 bankruptcy means court-supervised debt consolidation and reorganization, with a three- to five-year repayment period. At the end of that period, remaining debt can be discharged. This is a common debt relief solution for debtors with significant home equity, parents with back child support to repay or taxpayers with tax arrearages to repay.
Chapter 11 bankruptcy is primarily designed for both small and large businesses. Because of its unique flexibility and options, it can be a very effective tool for corporations, LLCs, partnerships and other entities that need to catch up on delinquent real estate payments, tax debts or other debts while keeping the business running.
Attorney Robert T. “Bob” Copeland and Scot S. Farthing are two of the three lawyers in the region who regularly handle Chapter 11 bankruptcy. They have more that 35 years experience and Bob Copeland has served previously as Chair of the Virginia State Bar’s bankruptcy section. In addition, he has been an active businessman himself in the financial services and coal industry.
To add to his extensive qualifications Mr. Copeland serves as Secretary & General Counsel of a local bank, which gives him particular insight into negotiating with banks to find debt-relief solutions for both businesses and consumers.
- Chapter 12 bankruptcy is most often used for farms or fisherman. Although similar to Chapter 11 in that debtors must create a three- to five-year repayment plan, Chapter 12 is tailored to be a less expensive, less complicated and more streamlined process.
Contact Us To Discuss Bankruptcy As A Debt Solution
Wytheville personal, business and farm bankruptcy attorney Scot S. Farthing is prepared to handle your bankruptcy efficiently, with your long-term financial best interests in mind. Email the firm or call or . Schedule a consultation with an experienced, caring and efficient Virginia bankruptcy lawyer.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.