Realizing that you can't handle the credit payment you're supposed to make is harrowing. This can come from a variety of reasons, including job loss or illness. Individuals who are in this position usually try to find ways that they can recover financially. This isn't always easy; however, filing a Chapter 13 bankruptcy might get you on the right financial track.
Realizing that you can't keep up with your debts is a very serious situation for many individuals. For homeowners who opt to file a Chapter 13 bankruptcy, figuring out what to do about the mortgage might be a priority. Be sure to think about these points when you consider your next steps.
Coming to the realization that you need to file for bankruptcy is a serious matter. There are two types of consumer bankruptcy filings. One of these is a liquidation bankruptcy, Chapter 7, in which all your non-exempt assets are liquidated to pay off creditors. You don't have to make regular payments in this one.
The Chapter 13 bankruptcy is one that's meant to help people who earn a living repay a portion of their debts in exchange for discharging the remaining balance once all the payments are made to the bankruptcy trustee. While you're making those payments, you'll have to keep up with your other bills. This means that things will be tight financially for a while.
Virginia residents who have medical debt will see it remain on their credit reports for seven years. Unpaid medical debts are typically first listed on a credit report several months after patients receive their bills. In most cases, a hospital or other medical provider will wait three months before sending the bill to s collections agency. The collections agency then has the option to notify credit bureaus regarding the status of any amount owed.
A Chapter 13 bankruptcy is also known as a wage-earner's bankruptcy because it comes with regular payments to the bankruptcy court. There are specific requirements for a debtor to be able to file this type of case. Before you file, you should ensure that you meet the requirements so you aren't wasting your time if you don't.
A person who is struggling to pay their bills because of high payments due on credit accounts and medical bills might opt to pursue a bankruptcy. For people who have an income, a Chapter 13 bankruptcy might be the most appropriate option.
Some Virginians are under extreme financial strain now in light of the COVID-19 crisis. One of the types of debt that they hold that could push them into bankruptcy is medical debt. Across the United States, nearly one-third of Americans are in medical debt, and half of these people end up defaulting on this debt.
A Virginia homeowner who takes out a home equity loan is said to have obtained a second mortgage. The home equity lender is considered to have a secondary position on the home's title. However, that lender can still foreclose on a borrower who fails to make payments. It's possible to strip a second mortgage lien by filing for Chapter 13 bankruptcy.
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.