Living in Virginia can be expensive. If you’ve been raising a family in this state, you no doubt agree with that statement. The good news about financial challenges, however, is that most of them are temporary. When something causes unbalance on your money scales, it’s important to consider whatever options might be available to get things back on track as soon as possible.
The type of options you choose may depend on the details of your particular circumstances. For instance, if you’ve gotten into the habit of overspending or living beyond your means, a viable option to restore financial stability might be to tighten your purse strings and shop with cash only. If your situation is a bit more dire, such as a recent job loss, divorce or medical emergency that has sparked financial crisis, you might want to pursue additional options.
Bankruptcy can be a valuable financial tool
When you think of bankruptcy, do you have negative feelings toward the idea? If so, you’re not the only one as it tends to have an attached stigma that keeps some people from realizing what a valuable financial tool it can be. Chapter 7 and Chapter 13 bankruptcies are among the most common to file if your financial situation has gotten out of hand and you need immediate debt relief.
There are eligibility requirements that you must satisfy before applying for either program. You may, in fact, qualify for one but not the other. It’s a good idea to seek clarification of the laws and regulations that govern bankruptcy petitions. Filing for one or the other doesn’t necessarily mean you’ve hit the end of the road; it might wind up being the cornerstone to building a better financial future.
Types of debt you can eliminate through bankruptcy
If you have debt because of child support or taxes, you’ll want to note that these types of debt are not typically dischargeable through bankruptcy. On the other hand, you can obtain debt relief for credit card bills, unpaid medical expenses, overdue utility bills and more.
Perhaps, an unexpected debt hit that you simply weren’t prepared to meet. This is not uncommon. You may have used a credit card to pay medical bills, for instance. Many people do. It doesn’t take long for finances to get out of hand when you’re trying to overcome a crisis while still making ends meet in your daily life at home.
Determine which type of bankruptcy fits your needs
If you have reliable income and a means to pay off your debt but simply need to restructure your payment plan, this would likely best align with a Chapter 13 bankruptcy as opposed to Chapter 7. The latter is reserved for people who have no means of resolving debt.
Your debt might equal more than half of your current income. Maybe you’ve tried to develop a plan to pay it off but even your best attempts would take more than five years. These are a few of many legitimate issues that often prompt Virginia residents to file for bankruptcy.