Bankruptcy can be a difficult and confusing process, but it is important to understand the options available in order to make an informed decision. In Kanawha County, West Virginia, there are several types of bankruptcy that individuals and businesses can file for, each with its own eligibility requirements and consequences.
This article from the experts at 3 Oh Investments will provide a comprehensive overview of bankruptcy in West Virginia, including the different types of bankruptcy, the eligibility requirements, and the process of filing for bankruptcy.
Types of Bankruptcy in West Virginia
There are two main types of bankruptcy that individuals and businesses can file for in West Virginia: Chapter 7 and Chapter 13.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is also known as a “liquidation” bankruptcy. This type of bankruptcy is intended for individuals and businesses that are unable to repay their debts. In a Chapter 7 bankruptcy, the individual’s or business’s assets are sold in order to repay creditors. The individual or business is then released from their debts but may also lose some assets in the process.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also known as a “reorganization” bankruptcy. This type of bankruptcy is intended for individuals who have a regular income but are unable to repay their debts. In a Chapter 13 bankruptcy, the individual creates a repayment plan that allows them to repay their debts over a period of three to five years. The individual’s assets are not sold in a Chapter 13 bankruptcy, but the repayment plan must be approved by the court.
Eligibility Requirements for Bankruptcy in West Virginia
In order to be eligible for bankruptcy in West Virginia, individuals and businesses must meet certain requirements. The eligibility requirements vary depending on the type of bankruptcy being filed for.
Chapter 7 Bankruptcy
In order to be eligible for Chapter 7 bankruptcy in West Virginia, individuals must pass the “means test.” The means test determines whether an individual has the means to repay their debts. If an individual’s income is above the median income for their state, they may not be eligible for Chapter 7 bankruptcy.
Chapter 13 Bankruptcy
In order to be eligible for Chapter 13 bankruptcy in West Virginia, individuals must have a regular income, and their unsecured debts must not exceed a certain amount. Unsecured debts include credit card debt, medical bills, and personal loans. The exact amount of unsecured debt that is allowed varies depending on the individual’s circumstances.
The Bankruptcy Process in West Virginia
The process of filing for bankruptcy in West Virginia can be complicated, but it is important to understand the steps involved in order to make an informed decision.
- Consult with a bankruptcy attorney.
- Determine which type of bankruptcy is best for you.
- Complete the required bankruptcy forms.
- Attend the 341 Meeting of Creditors.
- Complete a credit counseling course.
- File the bankruptcy petition with the court.
- Attend the court hearing.
- Receive a discharge from the court.
Bankruptcy can be a difficult and confusing process, but it is important to understand the options available in order to make an informed decision. This article has provided a comprehensive overview of bankruptcy in West Virginia, including the different types of bankruptcy, the eligibility requirements, and the process of filing for bankruptcy. If you are considering filing for bankruptcy, it is important to consult with a bankruptcy attorney to determine which type of bankruptcy is best for you and to understand the process involved.
The Most Cost-Efficient Way to Deal with Bankruptcy in Kanawha County
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