Chapter 7 is the most common type of bankruptcy case that is filed in West Virginia. It is known as “liquidation” bankruptcy because while your unsecured debts are wiped away, some of your assets may be liquidated.
A West Virginia bankruptcy lawyer can help you with a means test in order to decide if Chapter 7 is the right kind of bankruptcy for you and your situation. They will review your debts and assets and inform you on the right kind of filing. If you do not meet the criteria for Chapter 7, you will most likely be able to file a Chapter 13. In Chapter 13 you can have your debts restructured and a payment plan set up. Your assets are not liquidated with a Chapter 13 filing.
Chapter 7 Bankruptcy Law for Business
If your business is in financial distress you may want to consider filing for Chapter 7 bankruptcy. Your business will have to stop operations and a Trustee will be appointed to analyze the business’s finances. The Trustee will decide if you can continue operations. The nonexempt assets of the business will then be sold to pay back the creditors.
It is not guaranteed that all employees will keep their jobs. If employees do need to be let go, the court allows for some wages to be paid during the bankruptcy process. A hierarchy of payment outline will be maintained by the trustee according to the Bankruptcy Code. Immediate payment priorities will include salary, commission, and wages. Once the liquidation process is over, the stakeholders will be informed. Then they can claim whatever leftovers are there for the business.
Chapter 7 Bankruptcy Law for Individuals
If you reside in, own property or a house in, or own a business in the United States, you can file a bankruptcy case. If you had a bankruptcy case dismissed within the last 6 months, you are prohibited from filing again. If you received a bankruptcy discharge in the previous 6 to 8 years then you cannot file again until that time period is over.
After filing the case, you can retain a part of exempt assets. The board of trustees will sell off your nonexempt property and deal with your creditors. The types of debts that won’t be discharged include,
- Child support
- Income taxes that are less than 3 years old
- Fines and restitution ordered by the court
- Loan for studies
- Property tax
Chapter 7 Bankruptcy Will Stay on Your Credit for 10 Years
There can be a lot of misinformation out there about bankruptcy. When it comes to your finances and assets you don’t want to make any mistakes when filing for bankruptcy. Hiring a knowledgeable bankruptcy lawyer from our team at Mountaineer Criminal Law Group can make all the difference. We will help every step of the way during the process.
For more details on Chapter 7 bankruptcy or for a free consultation from attorney Sean Logue and his team at Mountaineer Criminal Law Group, call at (304) 900-3391 or contact us online.