Chapter 7 & 13 Bankruptcy
Bankruptcy is a right provided by law to people who are in debt and in need of a fresh start. Bankruptcy will discharge many of your debts, which means you will not have to pay them. However, you will have to continue to pay secured debts for the purchase of a particular item, such as a car or house, if you want to keep those items. Likewise, debts for taxes, student loans, child support or spousal support are not dischargeable in bankruptcy and you will most likely have to pay them after your bankruptcy. Learn more about the options available to you by giving this page a scroll. When you're ready to dive into the specifics of your circumstances, schedule a Free First Consultation with Snodgrass Law Firm, PLC. to find financial relief & long-lasting solutions.
Chapter 7 Bankruptcy
Chapter 7 is often referred to as a straight or liquidation bankruptcy. Chapter 7 gives debtors a “fresh start” by discharging or eliminating most unsecured debts such as medical bills, personal loans, and credit cards.
Chapter 7 will allow you to continue to make payments on homes and cars and other secured debts if you choose. Again, taxes, student loans and domestic obligations are usually non-dischargeable.
In order to know if you qualify for Chapter 7 we have to analyze your assets and income. First, we look at the value of your assets and determine if Virginia law will allow you to keep these assets. If the value of the asset exceeds the exemption amount, a Chapter 7 Trustee can liquidate said asset. Second, we look at your monthly household income and expenses to determine whether there is any true disposable income to be paid to your unsecured creditors. We will do everything in our power to secure a favorable outcome, and price ourselves on getting our clients the best possible results for their specific needs.
Chapter 13 Bankruptcy
Chapter 13 is a repayment plan where you pay a monthly payment to the Chapter 13 Trustee who then in turn pays your creditors. These repayment plans vary from 3-5 years in length. We will assist you in calculating a monthly payment to the Court which pays almost all of your creditors. Usually you will continue to pay your mortgage payment directly to your mortgage creditor unless you are severely behind on this payment. Chapter 13 will allow you to catch up past due mortgages payments and stop foreclosure and allow you to catch up or restructure automobile payments and avoid repossession.
In most cases Chapter 13 debtors pay a small amount back to their unsecured creditors such as medical bill or credit cards. The value of your assets often determines a set amount which is to be required to be paid to your unsecured creditors. Often it is only your income which determines how much is paid back.
We will work with you and determine how much income is required to successfully complete a Chapter 13 Plan.
Student Loan Debt?
Covid 19 emergency student loan relief will end January 31, 2022. When student loan payments restart on February 1, 2022 it's important to understand you have a bevy of options. For example, federal student loan forbearance and deferment will be possibilities for borrowers who are struggling financially. One option is to enroll in an income-driven repayment plan which will be based on your discretionary income, family size and state of residence. Other options include student loan refinancing and public service loan forgiveness. Contact our office and we will assist you in determining your best options available to you during these trying times. There are solutions when it comes to Student Loans!
CARES ACT - Home Loan Forbearance
You may have the right to a COVID hardship forbearance if you experience financial hardship directly or indirectly due to the coronavirus pandemic AND you have a federally backed mortgage, which includes HUD/FHA, VA, USDA, Fannie Mae and Freddie Mac loans. For mortgages not federally backed, certain services may offer similar forbearance options.
If your loan is backed by HUD/FHA, you are eligible for up to 18 months of forbearance depending on when your initial forbearance started.
If your loan is backed by Fannie Mae or Freddie Mac you may request up to two additional three-month extensions, for a maximum of 18 months of total forbearance. But to be eligible, you must have been in an active forbearance plan as of February 28, 2021.
Contact our office and we will assist you in figuring out who services your mortgage, and see if your mortgage is backed by Fannie Mae, Freddie Mac, or the federal government. We will build a succinct legal action plan to help you find relief.
What to do Next?
Contact the offices of Snodgrass Law Firm, PLC and we will assist you with Chapter 7, Chapter 13, Student Loan Debit Relief, and/or CARES ACT - Home Loan Forbearance. The information provided on this site is just a starting point. By seeking counsel with our attorneys, we can put a strong legal plan into action to help rectify your financial hardships. We hope to hear from you soon!
