Chapter 7 bankruptcy may help Virginia residents and others seek relief from debt. The process begins by filing paperwork that outlines the debts and assets a person has. Debtors may also be required to produce pay stubs and other financial information to the bankruptcy court. Documents needed to petition for protection from creditors can typically be obtained for free. Prior to doing so, an individual will need to take part in a credit counseling session.
Spiraling health care costs and the overwhelming debt to which it can condemn families been a problem in the United States for many years, and Congress took action to address the issue by passing the Affordable Care Act in 2010. However, a recent study published in the American Journal of Public Health suggests that the landmark legislation has not had the desired effect. In the first major study of its kind since the ACA became the law of the land, researchers discovered that medical debt still plays a role in about two-thirds of the personal bankruptcies filed in Virginia and around the country.
The subprime mortgage crisis is still fresh in the memory of many Virginia residents. Thankfully, the nation has recovered from the various factors that aligned to create that situation. However, it is not unusual for families to be living paycheck to paycheck and one unexpected downturn away from financial disaster. Too often, homeowners simply give up and do nothing, but there may be options available even in the most dire of circumstances.
Hindsight may be 20/20, but why wait until your finances have collapsed to see the warning signs of what got you there in the first place. When you know better, you can prepare for the future and making it secure.
Virginia residents who are planning on filing for bankruptcy have different methods available. For those with a steady income, a Chapter 7 case involves liquidating assets and using the money to repay creditors. A Chapter 13 case involves reorganizing current debts and repaying them over the course of several years. At the end of the repayment period, the remaining debt could be discharged. Generally speaking, only those who meet the income threshold in the state can file for Chapter 7 bankruptcy.