Being in debt is a horrible feeling for many people, especially when they know they can't cover the bills. Individuals who opt to file for bankruptcy might assume that they are going to feel elated when they are able to do away with those debts. This might not be the case, however, as many people find some negative emotions creep up when they file.
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.
Being unable to pay your bills is a serious matter, especially when you want to get the creditors taken care of. Unfortunately, some of life's circumstances won't make this possible. If you're in a position in which you're unable to pay your bills, you might consider filing for bankruptcy. A Chapter 7 bankruptcy is one of the options that you have.
When you realize that you can't pay your bills, you might start to look at ways to make ends meet. The downturn of the economy may mean that you don't have all the options at your disposal that you might have previously had. For some people, sudden job loss or emergency medical bills leave them needing to find a way to satisfy creditors. One option you might consider is filing a Chapter 7 bankruptcy.
People in Virginia may have always been under the impression that filing for bankruptcy could have a catastrophic effect on their future even though their debt has been discharged. However, researchers now believe that one of the possible effects, not being able to find a job, is less of a risk than previously thought.
Virginia residents who have car loans, mortgages or credit card balances are carrying debt. While being in debt isn't necessarily a bad thing in itself, individuals may find themselves unable to repay their creditors in a timely manner. Fortunately, there are steps that individuals can take to get a better handle on their finances. For instance, it may be possible to consolidate multiple balances into one monthly payment by obtaining a personal loan.
A Virginia bankruptcy court has ruled that if a creditor does not act to stop a collection activity prior to a person's filing for bankruptcy, this could be considered a violation of the automatic stay. However, the United States Supreme Court will rule on this issue later in the year.
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.
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.
In Virginia, many older adults wonder if they will get out of debt before retirement. Some have spent numerous years accumulating debt. These individuals confront financial difficulties -- including the reality that they never had the chance to save any money -- by the time they retire. Unfortunately, debt usually begins early in adult life.