Chapter 7

Chapter 7 is sometimes called a "liquidation bankruptcy." During the process, the bankruptcy trustee looks to see if there's any equity — that is, value — in assets that can be used to pay back creditors. However, the debtor is usually able to exempt most assets, especially if there's very little equity in a house or vehicle.

In Virginia, debtors are generally allowed to claim exemptions for:

  • Your car (up to certain limits)
  • Up to $5,000 per debtor

If you qualify for a Chapter 7, then you can get rid of most of your debts — especially credit card debt and medical debt. However, 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).

We're Here To Help When You Need It Most

Chapter 7 is a complex area, and you will need an experienced bankruptcy lawyer to see you 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.