Filing a Chapter 7 bankruptcy can allow Virginia debtors to regain control of their finances. This type of bankruptcy is the faster of the personal filing options and it doesn’t require the regular payments that the Chapter 13 filing does.
However, in order to file, you have to meet certain requirements. These are set in place to ensure that people can’t abuse the system or file under this chapter this when they should file under a different chapter. One of the primary requirements for filing under Chapter 7 is that you can’t have a high income. You either have to pass a means test or have an average income that’s less than the state’s median income for your family size.
Before you file your bankruptcy petition, you also have to complete credit counseling. You need to obtain the certificate and the course must be taken within the 180 days prior to filing. The certificate must be filed along with the petition for bankruptcy protection.
There are also limits to how often you can file. If you’ve filed a Chapter 7 in the past eight years or a Chapter 13 in the past six years, you can’t file a Chapter 7 until those time limits have passed. You also can’t file if you’ve had a bankruptcy petition dismissed within the prior 180 days, but you can refile after 181 days have passed.
When you need bankruptcy protection, make sure that you understand exactly what’s included and what isn’t. You need to know your responsibilities and rights so that you’re able to handle things the proper way.