West Virginia Bankruptcy Laws

Bankruptcy in West Virginia

The United States government installed new bankruptcy laws in the year 2005. These laws brought new regulations for who shall qualify for Chapter Seven bankruptcy and raised the payments required monthly for Chapter Thirteen bankruptcy. The government also installed new bankruptcy abuse acts for preventing the misuse of bankruptcy.

Bankruptcy is an opportunity for those who have found themselves buried in debt to work their way out. Bankruptcy is not the best choice for all and should be considered with caution. It should be used under varying circumstances when finances have changed. Those who apply for bankruptcy normally include those who have had a financial shift due to divorce, the loss of a client, the loss of employment, or an extended illness in the hospital.

Bankruptcy in West Virginia also does not eliminate all kinds of consumer debts. Child support, some taxes, some student loans, and alimony cannot be eliminated through any form of bankruptcy. Some student loans can be eliminated through bankruptcy if the judge decides that the outstanding debt is causing burden and excess strain to the individual.

Filing for Bankruptcy

Bankruptcy is to be filed to the West Virginia bankruptcy court. If a petition is granted all finances, including creditor calls and foreclosure calls, will be frozen. This freeze is to allow individuals the chance to free debts without the harassment.

For a freeze to be in effect for Chapter Thirteen bankruptcy payments must begin for the repayment plan. Such payments will normally be automatically withdrawn from an individual’s wage intake. An individual may file for bankruptcy by him or herself or he or she may file in a joint petition with his or her spouse.

Chapter Seven Bankruptcy

Chapter Seven bankruptcy freezes all debts while the bankruptcy process takes place over six months. This kind of bankruptcy uses an individual’s non-exempt property to pay off debts. The court will assign a trustee to liquidate all non-exempt property.

All property will be liquidated for its current value rather than its value at the time of purchase. The liquidated property funds will then be used to pay creditors. The trustee will be paid through the funds’ compensation. If an individual desires to keep a form of non-exempt property, he or she is required to pay the value of the property to the trustee. Exempt property can include motor vehicles, homes, appliances, some forms of real estate, clothing, unpaid wages, pensions, and some benefits.

Chapter Thirteen Bankruptcy

Chapter Thirteen bankruptcy requires an individual to pay off his or her debts by using his or her own personal income. The court will consider the individual’s income, expenses, dependents, and debts before assigning a specific repayment plan.

This repayment plan will designate the necessary payment amounts required each month for all debts to be repaid in a maximum of five years. No Chapter Thirteen plan can exceed five years though a plan may be as low as three years. Funds in West Virginia can be repaid through automatic deduction or through personal payment.

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