Chapter 7 is sometimes called a liquidation bankruptcy where the bankruptcy trustee looks to see if there's any equity in assets for the benefit of creditors. Usually, the debtor is able to exempt most assets especially if there's very little equity in a house or vehicle.
The Virginia exemptions that generally apply are that you can keep:
- Your car (up to certain limits)
- Up to $5,000 per debtor
Thus, if you qualify for a Chapter 7, then you can get rid of most of your debts — especially credit cards — except you'll still have to pay your mortgage payment (if you are going to keep a house) and your car payment (if you keep your car).
Chapter 7 is a complex area, and you will need an experienced bankruptcy lawyer to see you successfully through the process. We invite you to call our attorneys at Coates & Davenport, P.C., at 804-729-5537 or write to us using this online form.
For more information about Chapter 7, consult our Bankruptcy Basics page.
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.