Bankruptcy is the final alternative for those who have suffered from significant financial setbacks that could lead to foreclosure. It should be noted that the bankruptcy process is an extremely complex legal route.
Bankruptcy can lead to a long term loss of credibility which means that one will not be able to get loans for a very long period. Hence, the option of filing for bankruptcy should be perceived as a last resort.
Filing for bankruptcy involves a number of legal procedures and restrictions that make the entire process excruciatingly difficult. There are several options to choose from if you are searching for any one of the reputed Northern Virginia bankruptcy attorneys. Expert legal assistance is essential if you are left with no option other than filing for bankruptcy.
Overview of bankruptcy process
Bankruptcy is aimed at allowing individuals the option of being able to save their assets from the prospect of foreclosure.
In the initial stages of bankruptcy proceedings, the court appointed bankruptcy trustees need to be provided with all the details of circumstances and financial transactions that have made bankruptcy filing necessary.
Subsequently, one is required to furnish all details of assets as well as dues that are to be paid to debtors. Depending upon the nature, assets are classified between exempt and non-exempt property.
Debt repayment is allowed by seizure of non-exempt assets that include, bank accounts, valuable articles, second home, or surplus assets including cars and other investments.
However, your primary place of residence or other basic necessities such as personal vehicles and other essential paraphernalia cannot be seized for debt realization because these items fall under exempt assets.
Bankruptcy options
Depending on the financial and other aspects, you can think of filing for Chapter 7 OR Chapter 13 bankruptcy. These are main options for liquidation and are available for individuals with different levels of income or assets.
If you are unable to repay the debt due to low income, Chapter 7 bankruptcy is the right option according to an expert advisor who is one of the established Northern Virginia bankruptcy attorneys. This alternative helps you keep all types of assets that exempted from foreclosure. The eligibility to avail this option depends upon the existing income which must be lower than the average income as per the standards prescribed by the state.
Freedom from debtors
Once you are allowed to declare bankruptcy with the support of one of the most trusted Northern Virginia bankruptcy attorneys, your debtors will not be able to claim their right on your assets. This will grant you freedom from repayment of advances. This is known as debt discharge in legal parlance.
The restoration of the failing financial health of your personal life or a business venture is the principal aim of bankruptcy proposal. One must, however, take into consideration the long term impact of this on personal credit rating. Bankruptcy can prove to be a major impediment for all your loan proposals in the future.
Resource box
If you are in pursuit of one of the most established Northern Virginia bankruptcy attorneys, then you have reached your destination. The law Office of Rowena N. Nelson is a reputed law firm which is backed by expert legal advisors, Visit http://www.rnnlawmd.com/ now to find more.