Chapter 7 bankruptcy may be an effective way for debtors in Virginia and other states to regain control of their finances. An individual might qualify for Chapter 7 bankruptcy by passing the means test. The means test evaluates a person's income to determine if it is above or below the state median. A person could also qualify to file for a liquidation bankruptcy if that individual has not had a Chapter 7 case discharged in the past eight years.
Do you have concerns about what bankruptcy could mean for your personal property? Are fears regarding the loss of your important assets and things you need for daily life holding you back from making a decision that could positively impact your financial future? If so, you are not alone. Misconceptions and concerns about bankruptcy keep many Virginia consumers from exploring this potential option.
Many people in Virginia have found a path to debt relief and a new financial future by filing for personal bankruptcy. However, when tax time rolls around, they may be concerned about how their Chapter 7 or Chapter 13 filing may impact their annual tax returns to the IRS. There are a few things for people to keep in mind when preparing their Form 1040 for submission after a bankruptcy. In the first place, it is important for people going through a bankruptcy case to file their tax return correctly and promptly. Under the bankruptcy code, people who do not file their tax returns or request an extension before the deadline may have their bankruptcy cases dismissed.
Virginia homeowners and others throughout the country may be interested in refinancing their mortgages after filing for bankruptcy. However, an individual will likely need to wait at least a year before a home loan can be changed in any way. Those who have an FHA loan will need to wait up to two years after filing for bankruptcy to change the terms of their mortgages. The waiting period decreases to one year if the bankruptcy was caused by circumstances outside of a person's control.