Bankruptcy Richmond can help give you a fresh start financially although it seems impossible at first. Bankruptcy Richmond will not be difficult when you take one step at a time. Facing bankruptcy is not going to be easy, but it may be your only way out of excessive debt. However, many people are unfamiliar with bankruptcy procedures and laws. Under new bankruptcy laws, anyone who files for bankruptcy must take credit counseling from an approved government agency within six months of filing. You must then complete a debtor’s course. The U.S. Trustee Program and Department of Justice only allows specific counselors and educators to counsel you.
The debtor courses and credit counseling may not happen a the same time, but you must complete them. The counseling sessions involves an assessment of your financial situation, a discussion of other options, and a personal budget plan. You should finish these sessions within an hour. You can also participate by phone or online. At the end of each course, you get a certificate of completion.
When it comes time to file, it is advised to seek the services of an attorney or organization to help you better understand the laws. How much you earn is going to be essential. If you make a certain income, you may not be allowed to file for Bankruptcy Richmond. Bankruptcy can include selling assets so you will prefer to know what you can keep. This depends on which type of bankruptcy you are allowed to file. Most debtors opt for Chapter 7 bankruptcy because it is faster and removes them from paying debts. However, under Chapter 7, courts have a right to sell certain assets to pay your creditors. If you truly want to pay creditors and keep assets, Chapter 13 bankruptcy is ideal. The courts work out a reasonable payment plan to pay debts within five years and the creditors must accept it. Your wages will have to meet the criteria for filing for either kind of bankruptcy.
Filing for Bankruptcy Richmond does have to be viewed as negative. Think of it as getting a second chance. Once you have recovered, avoid getting into excessive debt.