How does Bankruptcy Work?

I am about $30,000 in debt and I make $36,000 a year. I live in VA and am considering bankruptcy. I rent an apartment and have a car. Other than that I have under $1,000 in my bank account. What can I expect from bankruptcy and what will be done will all my debt? I have heard of payment plans and changes in bankruptcy law.

This entry was posted on Thursday, May 21st, 2009 at 1:35 pm and is filed under Bankruptcy Law. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

2 Responses to “How does Bankruptcy Work?”

1. sarabmw Says:
   May 24th, 2009 at 4:25 am

   There are five different types of bankruptcy proceedings. The two most common types are referred to as Chapter 7 or Chapter 13 bankruptcies. Usually when people talk about “filing for bankruptcy,” they mean Chapter 7. Chapter 7 is a roughly 90-day process that gives you the opportunity to wipe the slate clean, avoiding almost all of your debts without having to make any future payments. “Discharge” is the legal term that means you no longer have a legal obligation to repay a debt. In Chapter 7 your assets can be at risk and some debts will not be discharged. In addition, some transfers of property can be undone in bankruptcy. Timing of the bankruptcy filing is very important. Filing for bankruptcy may affect your credit for years to come or have other serious consequences that you will need to consider.

   You may wish to consult a lawyer to assess the pros and cons of filing in your particular situation.

2. umdenstock Says:
   May 26th, 2009 at 5:43 pm

   your first visit with an atty should be free – you will have to get into a debt plan first