Virginia Beach, VA Bankruptcy Defense Lawyers
Introduction
Facing financial difficulties can be one of the most stressful experiences in life. If you’re in Virginia Beach, VA, and grappling with overwhelming debt, you might feel like you’re drowning in a sea of bills with no lifeline in sight. But don’t worry—we’re here to help. Our team of experienced bankruptcy defense lawyers at Delancey Street can guide you through the complex process of bankruptcy, offering you a fresh start and a chance to rebuild your financial future.
Understanding Bankruptcy: What It Is and How It Works
Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the bankruptcy court. It provides a way for people who can no longer afford to pay their bills to get a fresh start by forgiving debts that they can’t pay while offering creditors a chance to recoup some of their losses based on the debtor’s available assets.
Types of Bankruptcy
In the United States, bankruptcy cases are handled in federal courts under the U.S. Bankruptcy Code. The most common types of bankruptcy filings include:
- Chapter 7 Bankruptcy: Often referred to as “liquidation bankruptcy,” Chapter 7 involves selling off non-exempt assets to pay off unsecured debts like credit card balances and medical bills.
- Chapter 13 Bankruptcy: Known as “reorganization bankruptcy,” Chapter 13 allows individuals to keep their property and repay debts over a three to five-year period based on a court-approved repayment plan.
Common Myths and Misconceptions About Bankruptcy
Many people hesitate to consult a bankruptcy attorney due to prevailing misconceptions about the bankruptcy process. Let’s debunk some of these myths:
- Myth #1: “I will automatically lose my house and/or car.”
- Reality: Bankruptcy law allows debtors to exempt certain assets, including equity in their residence, automobile, and retirement accounts. Many times these assets can be protected even if they are owned free and clear.
- Myth #2: “My bankruptcy filing will be in the newspaper, and everybody will know about it.”
- Reality: Unlike certain legal proceedings, there is no requirement that bankruptcy filings be published in the newspaper. Only creditors and co-debtors are notified of the bankruptcy filing.
- Myth #3: “I will never be able to obtain credit in the future if I file a bankruptcy case.”
- Reality: While a bankruptcy filing may appear on your credit report for up to 10 years, it does not mean that the discharged debtor will be prohibited from borrowing money. In fact, some debtors may actually see their credit score improve as a result of the bankruptcy filing.
Virginia Bankruptcy Exemptions
In Virginia, you have the choice of using either federal or state bankruptcy exemptions, but you must use one set exclusively. Here are some key exemptions under Virginia law:
- Homestead Exemption: Virginia allows you to exempt up to $25,000 of equity in your principal residence, plus additional amounts based on age and dependents.
- Motor Vehicle Exemption: You can exempt up to $6,000 of the equity you have in a motor vehicle.
- Wage Exemption: You can exempt the larger of 75% of your weekly earnings or 40 times the federal minimum wage.
The Importance of Professional Help
Navigating the bankruptcy process can be complex and daunting. That’s why it’s crucial to seek the help of experienced bankruptcy defense lawyers. At Delancey Street, we understand the emotional and financial stress that comes with overwhelming debt. Our team is dedicated to providing personalized, compassionate, and effective legal counsel to help you achieve financial freedom.
Hypothetical Scenario
Imagine you’re a single parent in Virginia Beach, struggling to make ends meet after losing your job. Your credit card debt has spiraled out of control, and you’re facing the threat of foreclosure on your home. By consulting with our bankruptcy defense lawyers, we can help you file for Chapter 7 bankruptcy, allowing you to eliminate most of your unsecured debts and protect your home through the homestead exemption. This fresh start will enable you to focus on finding a new job and providing for your family without the constant burden of debt.
Call to Action
If you’re feeling overwhelmed by debt and don’t know where to turn, contact us today for a free consultation. Our experienced bankruptcy defense lawyers at Delancey Street are here to help you navigate the bankruptcy process and achieve the financial fresh start you deserve. Don’t let debt control your life—take the first step towards financial freedom with our expert legal guidance. By addressing common concerns, debunking myths, and providing detailed information about bankruptcy and exemptions in Virginia, this article aims to be both informative and engaging. Remember, you’re not alone in this journey, and professional help is just a phone call away.
