Some Virginia residents who are struggling with debt may be considering filing for Chapter 7 bankruptcy. One of the major concerns for many bankruptcy filers is ruining credit scores. However, it is possible to rebuild credit after a bankruptcy.
Many people worry that bankruptcy will forever disrupt their dreams of homeownership. However, purchasing a home after bankruptcy is not impossible, though it may take some time. The length of time will depend on a number of factors including what type of bankruptcy you filed for, what types of loans may be available to you and how long it takes you to rebuild credit.
Virginia residents may be interested in knowing that although there is no income limit set in order to file for Chapter 13 bankruptcy, there is a limit to the amount of debt one can have. For a person to be able to file for Chapter 13 bankruptcy, their debt must be less than $394,725 in unsecured debt. It cannot be more than $1,184,200 in secured debt.
Virginia consumers who are struggling with debt might wonder whether they should file for Chapter 7 bankruptcy. In order to file for Chapter 7, they must pass what is known as a "means test". This means that their income must be below a certain amount, which is usually the median income for the state. However, there are additional considerations in determining this income. For example, certain expenses may be taken into account and deducted from overall income to determine eligibility.
Young adults in Virginia and across the U.S. are in more debt than they've been in since 2007. In fact, Americans between the ages of 18 and 29 owe a whopping $1.05 trillion, according to a new report from the New York Fed Consumer Panel and Equifax.