West Virginia Bankruptcy Laws
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
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automatically withdrawn from an individual's wage intake.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
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.