Chapter 7 Bankruptcy

Attorneys in Richmond, VA

How Can A Chapter 7 Help You?

A Chapter 7 bankruptcy can be a valuable tool to help you resolve your debts, get peace of mind, and start your pathway to financial freedom.

In many Chapter 7 cases, debts go away without any repayment, which can be a huge step to getting a fresh start.

Immediately upon filing, you get the benefit of a bankruptcy shield known as the automatic stay. The automatic stay is extremely powerful because it makes it a violation of federal law for your creditors to take any further action to collect debt from you.

Some of the creditor actions that must come to a complete stop once a Chapter 7 case is filed and the automatic stay begins to work its magic are:

Garnishment
Warrants in debt
Collection letters and calls
Utility disconnections
All other action to collect debt

It is a big deal to not have to deal with those issues or with those creditors. If you are facing any of those issues, or if creditors are currently trying to collect debts from you, or if you just have more debt than you can handle, Financial Freedom Legal may be able to help.

Bankruptcy Related Links

Chapter 7 Bankruptcy FAQ

What Does Liquidation Mean?

Chapter 7 is also known as liquidation bankruptcy. This means that some of your property may not be protected if you file Chapter 7 and could be in danger of being sold to cover your debts.

The potential risk of property loss makes it extremely important for you to speak with our experienced bankruptcy attorneys who can help you explore your options and determine if there is a way to protect your property in a Chapter 7 bankruptcy.

Financial Freedom Legal will review your property with you, including houses, cars, and other things of value that you own.

From there you will learn which laws can be used to protect your property. State laws known as “exemptions” can be used to protect your possessions up to a certain amount.

For example, in Virginia you can use exemptions to protect the value of a motor vehicle up to $6,000.00.

After reviewing the property you own and the exemptions that you are entitled to, you are then able to see if a Chapter 7 bankruptcy would put you in danger of losing property.

If a Chapter 7 bankruptcy would put your property at risk, there may be other options available to you to resolve your debts, such as a Chapter 13 bankruptcy case.

Do You Make Too Much Money to Qualify for Chapter 7?

It is possible to earn too much money to qualify to file a Chapter 7 bankruptcy.

People who have an income that is higher than the median income for their household size in the county they live in may not be eligible for Chapter 7 bankruptcy.

If your income is above the median income for your household size, the court has developed a “means test,” which is a formula that takes into account all of your income and expenses to determine whether you are eligible to file.

Financial Freedom Legal reviews your income for the six-month period prior to filing bankruptcy to determine if you are above the median income for your household size. If you are above the median income for your household size, we will complete the means test with you to determine if Chapter 7 may be an option for you.

If you do not qualify for a Chapter 7 bankruptcy, there are alternative solutions to resolve your debts and start your quest for financial freedom.

What Kinds of Debts are Included in Chapter 7?

There are many types of debt that can be discharged in a Chapter 7 bankruptcy. A debt being discharged just means that you would no longer need to pay the debt.

Some of the debts that can be discharged in a Chapter 7 bankruptcy are:

Credit cards
Medical bills
Personal loans
Payday loans
Cash advances
Internet loans
Utility bills
Vehicle deficiencies (balances owed on vehicle loans when you no longer have the vehicle)
Mortgage deficiencies (balances owed on a home loan when you no longer have the home)
Some tax debts

There are also some types of debt that Chapter 7 does not help with, such as loans attached to property that you want to keep.

For example, a Chapter 7 bankruptcy may not have any effect on your property loans or mortgage payments, if it is your desire to keep your car, furniture, jewelry, or home that is linked to the loan.

With a free consultation with Financial Freedom Legal, our team will help you explore all of your options and discuss in detail exactly what debts would go away and what debts you would need to continue to pay if you file a Chapter 7 bankruptcy.

There are also alternative solutions if the types of debts that you are struggling with would not be resolved through Chapter 7.

What Are The Benefits Of Chapter 7 Over Chapter 13?

There are two major advantages to Chapter 7 over Chapter 13 – duration and cost.

The Chapter 7 bankruptcy process is relatively quick. Generally, you can complete a Chapter 7 from start to finish in approximately four months.
At the end of the four-month period, you will receive a discharge of your debts and move on to accomplishing your financial goals.

A Chapter 13 bankruptcy, on the other hand, generally lasts for a period of three to five years.

With respect to cost, a Chapter 7 bankruptcy typically does not involve any repayment of debts to creditors. Whereas a Chapter 13 bankruptcy requires you to make monthly payments over a period of time.

Willie Broyles

20:01 28 Nov 23

Very helpful in my free consultation! Very professional and caring.

JwagstaffIII Wagstaff

22:30 04 Nov 23

Andrea Huff

16:51 15 Oct 23

They made it a lot easier than I thought it would be.I wasn’t sure they would be able to do anything for me but I’m so happy they were. Thank you Veronica Brown-Moseley for easing my worries and stress.

Calvin C.

06:56 10 Sep 23

I came into your office looking for financial freedom and I was met with nothing but complete professionalism. Working with Veronica and Megan, made the process comfortable, easy and quick. I just want to say thank you for helping towards a peace of mind!

Charles Houston

00:01 16 Aug 23

Friendly professional felt like a family member

April Fontaine

15:45 17 Jun 23

Veronica and Steve are both great attorneys to work with. They make you feel comfortable and make the process easy. Thank you both for all you do. I highly recommend Financial Freedom Legal

Pamela Rose

19:27 14 May 23

Thank you so much. I walked into your office scared and worried. However that quickly eased, once I met with office personnel and Attorney, Veronica Brown-Mosley, respectfully. She listened, took control and followed up, thoroughly. I greatly appreciate you being there. Thank you so much. Highly recommend!

Jonathan Snow

01:53 04 May 23

Financial Freedom Legal are probably the most professional/upfront debt solution company in business. Veronica is 1 of the owners and legal consultants for this company and she is the most knowledgeable, welcoming, and professional person that I’ve ever conversed with in this field. She answered everyone of my questions, and was patient enough to listen to everyone of them that I asked her while also offering different financial options to choose from.

After contemplating using the service of Financial Freedom Legal, and consulting with Veronica I decided that my circumstances didn’t necessarily require going this particular route, but if I ever find myself going in that direction Veronica and Financial Freedom Legal will be the company that I will do business with.

Veronica Brown-Moseley

Stephen Relyea

Compassionate Lawyers Helping You File Chapter 7 Bankruptcy

There are many instances where Chapter 7 is the ideal choice.

However, given the complexities in making the determination about whether Chapter 7 may be a good option, it is very important for you to have an experienced bankruptcy attorney in your corner.

Financial Freedom Legal helps you understand the potential risk of property loss, limited effectiveness, and certain income restrictions associated with Chapter 7 bankruptcy.

Schedule a free consultation today to explore your options and see if Chapter 7 may be the right choice to get the relief you deserve, have peace of mind, and begin your journey to financial freedom.