Military veterans in Virginia may face a difficult time adjusting to their time after service, especially when it comes to financial issues. As a result, many veterans face escalating debt and may be forced to file for bankruptcy. Under a 2019 federal law, the Honoring American Veterans in Extreme Need Act -- the HAVEN Act -- disabled military veterans receive some additional protections during the bankruptcy process. This can be important in helping people decide to file and seek debt relief.
Debtors in Virginia and throughout the country who are struggling to keep up with their bills may be able to take advantage of Chapter 7 bankruptcy. However, there are limits to how many times an individual can file. In most cases, an individual will need to wait eight years after a Chapter 7 case is discharged before they can file another liquidation bankruptcy case. Those who file for Chapter 13 bankruptcy must wait six years before filing for a liquidation bankruptcy.
Some people in Virginia who have unpaid debt might eventually face one or more lawsuits. This can be stressful, and individuals who have no money may be tempted to ignore them. However, there are steps people can take to defend themselves against these lawsuits and possibly get them dismissed. Furthermore, failing to respond can lead to a judgment by default, resulting in such actions as wages being garnished. In responding to the lawsuit, people should not admit that they are liable for the debt.
Every year, almost one in three Americans who file Chapter 7 bankruptcies are burdened by student loans. However, this kind of debt is not usually dischargeable in Virginia or any other state. When filers have these loans, they usually account for about half of their total financial obligations. These were two of the discoveries made by researchers who studied 1,083 Chapter 7 cases from the financial online marketplace LendEDU.
A growing number of people in Virginia are facing escalating credit card balances. According to the New York Federal Reserve, younger Americans traditionally steered clear of credit card debt. Many millennials came of age during the financial crisis in 2008 and became more thrifty as a result. However, credit card delinquencies for 90 days or more have risen the most among younger Americans. For people age 18 to 29, these types of delinquencies reached 8% of all credit card balances in the first quarter of 2019.
The Supreme Court ruled on June 3 that creditors in Virginia and around the country may be held in civil contempt if they pursue payment of a debt that has been discharged in a bankruptcy. The nation's highest court applied an objective reasonableness standard to decide a case involving an Oregon business center's efforts to collect a debt from a real estate developer who had filed for bankruptcy. This standard means that creditors can be held in contempt when they seek payment of a debt that they have no reasonable basis to believe is not included in a discharge order.
Roughly 530,000 families throughout Virginia and the rest of the U.S. file for bankruptcy each year. The majority of those cases involve debt incurred due to medical reasons, according to a study published recently in the American Journal of Public Health. After reviewing bankruptcy data, a team of academics discovered that 66.5% of Chapter 7 and Chapter 13 petitions are filed by individuals who either have medical bills that they cannot pay or suffered a financial setback after an illness or injury left them unable to work.
Those in Virginia and throughout the country who are struggling to manage their finances may find it helpful to file for Chapter 7 bankruptcy. Although it will impact a person's credit score, it may also make it easier to create the foundation for a stronger financial future. One of the advantages of filing for a liquidation bankruptcy is that it only takes about three to six months to have debts discharged.
Even when Virginia patients make an effort to use medical services in their insurance networks, they might fail to avoid out-of-network charges during hospitalization. Many patients understand that costs could be higher from out-of-network providers, but they may not realize that unexpected medical bills can result when they use in-network hospitals. Hospital administrators often cannot answer questions about out-of-network professionals and laboratories providing services within their hospitals due to complicated insurance contracts.
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.