Chapter 7 Bankruptcy Is A Financial Lifeline
Too often, individuals who are wrestling with unmanageable debt search for alternatives to bankruptcy in an attempt to resolve their financial woes. In doing so, they continue to be unnecessarily hounded by debt collectors and often wind up forfeiting assets they could have held on to in bankruptcy.
What many people don’t realize is that bankruptcy has lost much of its stigma, and it does not have to saddle you with a poor credit score for the rest of your life. Good people file bankruptcy due to life events outside of their control and they are able to rebound financially. In fact, filing Chapter 7 or Chapter 13 bankruptcy is a solid means of resetting your financial life.
At the Law Office of Joanne Yi, PLLC, we help people of all ages and diverse backgrounds regain solid financial footing through bankruptcy.
Understanding Chapter 7 Bankruptcy
Chapter 7 bankruptcy is often referred to as the “liquidation bankruptcy” because a number of assets are sold or liquidated to satisfy creditor claims. A more accurate description is the “fresh start bankruptcy,” because it allows you to eliminate much of your debt and rebuild a solid financial foundation. You get to move forward with an entirely clean financial slate.
Credit card debt, medical debt, personal loans and other secured debts will be discharged in Chapter 7 bankruptcy. College loans, some tax debt and obligations like spousal or child support are less likely to be discharged in bankruptcy.
In addition, an automatic stay is a type of injunction that prohibits collectors from calling, stops foreclosure proceedings and allows you to halt the garnishment of your wages or bank accounts. State and federal laws protect certain assets by making them exempt, meaning the bankruptcy trustee cannot sell that asset to pay off creditors. This may include your car and home, though people who wish to retain a family home often file Chapter 13 bankruptcy. Property that is exempted in Chapter 7 includes:
- Up to $6,000 of clothing and household furnishings
- Up to $10,000 of tools and equipment
- Up to $6,000 of equity in one motor vehicle per individual
- Up to $5,000 of equity in real estate and/or personal property per individual
- Qualified retirement accounts
- Benefits paid from Workmen’s compensation
Guiding You Through A Complex Process
At the Law Office of Joanne Yi, PLLC, we understand that bankruptcy can be stressful and emotional. We will help you identify and protect those assets you do not need to forfeit while guiding you through the process.
You must qualify for relief under Chapter 7 bankruptcy via a specific calculation called the means test, which determines your eligibility. The calculation is based on your median income. However, you may still be able to qualify even if you earn a significant monthly income.
Attorney Joanne Yi has spent more than a decade helping individuals file bankruptcy and reset their financial lives. She will prepare and file the necessary documents, communicate with debtors on your behalf and represent you at all hearings.
Don’t Postpone Fixing Your Financial Life
It doesn’t make sense financially or emotionally to continue to cope with debt that has become unmanageable and that you are unable to resolve through other means. We can answer your questions about bankruptcy, assess your situation and recommend an effective course of action.
Call 703-997-9156 or use our online contact form to schedule a free initial consultation at our office in Manassas, Virginia.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.