What is Chapter 7 Bankruptcy?

Bankruptcy is a term that everyone is familiar with, but very few understand. It is a legal process through which individuals or businesses who are unable to pay their debts can seek relief from their creditors. One of the most commonly used bankruptcy options is Chapter 7 bankruptcy. If you’re a resident of Manassas, VA, and are considering filing for Chapter 7 Bankruptcy, it’s crucial to hire a Chapter 7 Bankruptcy Attorney Manassas VA. In this article, we will explain what Chapter 7 Bankruptcy is, how it works, and why you should consider hiring an attorney.

Chapter 7 Bankruptcy is a type of bankruptcy that allows individuals or businesses to discharge most of their unsecured debts such as credit card debts, medical bills, and personal loans. Unlike other forms of bankruptcy, Chapter 7 does not require a repayment plan. Instead, the debtor must liquidate their nonexempt assets, and the proceeds are used to pay off their creditors.

How Does Chapter 7 Bankruptcy Work?

To qualify for Chapter 7 Bankruptcy, you must first pass the “means test.” The means test is a formula that determines whether your income is low enough to file under Chapter 7 rather than Chapter 13. If your income is below the median income in your state or if you can show that your expenses make it impossible to repay your debts, you can file under Chapter 7.

Once you file, an automatic stay goes into effect, which means that creditors must stop all collection actions, including lawsuits, foreclosures, and wage garnishments. The court will appoint a trustee to oversee your case, and you will be required to attend a meeting of creditors. At this meeting, the trustee will review your financial affairs, and your creditors may ask you questions about your debts.

After the meeting, the trustee will sell your nonexempt assets, and the proceeds will be distributed to your creditors on a pro-rata basis. This means that each creditor will receive a percentage of the money based on how much they are owed. Any remaining debts will be discharged, which means you will no longer be responsible for paying them.

Why Should You Hire a Chapter 7 Bankruptcy Attorney?

Filing for bankruptcy can be a complex and overwhelming process. Hiring a Chapter 7 Bankruptcy Attorney Manassas VA can help you understand your rights and obligations under the law. Here are some reasons why you should consider hiring an attorney:

1. Understanding the Law

Bankruptcy laws are complex and can be difficult to understand. An attorney who specializes in Chapter 7 Bankruptcy understands the law and can guide you through the process.

2. Protecting Your Rights

Creditors will try to collect as much money as possible from you, even if it means violating your rights. A bankruptcy attorney can ensure that your rights are protected and that creditors follow the law.

3. Avoiding Mistakes

Bankruptcy paperwork is extensive and can be confusing. Filling out the wrong form or making a mistake on your paperwork can result in your case being dismissed. An attorney can help you fill out your paperwork correctly and avoid costly mistakes.

4. Maximizing Your Exemptions

In Chapter 7 Bankruptcy, you are allowed to keep certain assets, called exemptions. An attorney can help you maximize your exemptions and keep as much property as possible.

5. Negotiating with Creditors

An attorney can negotiate with your creditors on your behalf to settle your debts or come up with a repayment plan that works for you.


Chapter 7 Bankruptcy can provide a fresh start for those who are struggling with overwhelming debt. However, the process can be complex, and it’s essential to hire a Chapter 7 Bankruptcy Attorney Manassas VA to guide you through the process. An attorney can help you understand the law, protect your rights, avoid mistakes, maximize your exemptions, and negotiate with your creditors. If you’re considering filing for Chapter 7 Bankruptcy, contact a bankruptcy attorney in your area for a consultation.

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