In West Virginia, bankruptcy offers consumers a chance to become debt-free. The claims are filed when consumers have accumulated overwhelming debt and late payments. The proceedings help consumers lower their debt value and become more financially stable. Bankruptcy Lawyers in Martinsburg WV help consumers compare the chapters and make the most suitable decision.
Chapter 7 Bankruptcy Advantages
Consumers pay off most of their debts through liquidation. A reaffirmation agreement is signed only for debts for which the consumer is still responsible. The automatic stay starts as soon as the claim is filed, and creditors cannot take legal action. Once the claim is filed, any wages or assets acquired are protected and belong to the consumer. The chapter 7 bankruptcy lasts about six months, and there isn’t a minimum debt value set for the claims.
Chapter 13 Bankruptcy Advantages
The restructured payment plan provides the consumer with more time to pay off their debts. The court discharges debts such as unsecured credit cards and debts that are no longer the consumer’s responsibility. Most consumers receive protection for their primary home and avoid legal claims by creditors for up to five years. Foreclosure is stopped through chapter 13, and the consumer has more time to catch up overdue payments. There isn’t a limit on how many times the consumer files for chapter 13.
Chapter 7 Disadvantages
The disadvantages start with the loss of all non-exempt assets. The consumer doesn’t choose which assets are sold or how the funds are distributed. You cannot file for a chapter 7 bankruptcy every eight years if the court discharged any of your debts.
Chapter 13 Disadvantages
Consumers must use all disposable income to pay any additional debts. The claims last for up to five years. Consumers aren’t allowed to start any new lines of credit until they complete the bankruptcy. The court has the option to garnish the consumer’s wages.
In West Virginia, chapter 7 and 13 bankruptcy are available to consumers to manage their debts. Their options include a restructured payment plan and liquidation. Consumers who want to weigh their options contact Bankruptcy Lawyers in Martinsburg WV directly or visit website domain for more information now.
